NY Fed – The Macroeconomic Effects of Forward Guidance

by Sabrina I. Pacifici on February 25, 2013

The Macroeconomic Effects of Forward Guidance – Marco Del Negro, Marc Giannoni, and Christina Patterson: “In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance. We estimate that a commitment to lowering future rates below market expectations can have fairly strong effects on real economic activity with only small effects on inflation.”

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