FORWARD GUIDANCE AND THE STATE OF THE ECONOMY.

This paper analyzes forward guidance in a nonlinear model with a zero lower bound (ZLB) on the nominal interest rate. Forward guidance is modeled with news shocks to the monetary policy rule, which capture innovations in expectations from central bank communication about future policy rates. Whereas...

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Bibliographic Details

Published in:	Economic Inquiry Vol. 55; no. 4; pp. 1593 - 1625
Main Authors:	Keen, Benjamin D., Richter, Alexander W., Throckmorton, Nathaniel A.
Format:	Article
Published:	Wiley-Blackwell Oct2017
Subjects:	Recessions Households Nonlinear statistical models Monetary policy United States gross domestic product
Online Access:	View this record in EBSCOhost