Odyssean Forward Guidance in Monetary Policy: A Primer

10 Pages Posted: 29 Jan 2014

See all articles by Jeffrey R. Campbell

Jeffrey R. Campbell

University of Notre Dame; Tilburg University

Date Written: November 19, 2013


This article shows how central bank forward guidance can improve macroeconomic outcomes by altering current expectations of future inflation and output.

Keywords: New Keynesian monetary policy, Ramsey problem, time-consistency problem, rational expectations, macroeconomics and monetary economics, central banks and their policies, monetary policy, central banking, and the supply of money and credit

JEL Classification: E5

Suggested Citation

Campbell, Jeffrey R., Odyssean Forward Guidance in Monetary Policy: A Primer (November 19, 2013). Economic Perspectives, Vol. 37, No. 4, 2013, Available at SSRN: https://ssrn.com/abstract=2386027

Jeffrey R. Campbell (Contact Author)

University of Notre Dame ( email )

United States

Tilburg University ( email )

Tilburg, 5000 LE

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