- Copyright Page
- Central Banking’s Long March over the Decades
- Monetary Policy Committees and Voting Behavior
- Peaks and Troughs: Economics and Political Economy of Central Bank Independence Cycles
- The Governance of Central Banks: With Some Examples and Some Implications for All
- Can the Central Bank Alleviate Fiscal Burdens?
- The Impact of the Global Financial Crisis on Central Banking
- Strategies for Conducting Monetary Policy: A Critical Appraisal
- Central Bank Communication: How to Manage Expectations?
- Central Bank Communications: A Case Study
- Transparency of Monetary Policy in the Postcrisis World: Nergiz Dincer, Barry Eichengreen, and Petra Geraats
- Real Estate, Construction, Money, Credit, and Finance
- Inside the Bank Box: Evidence on Interest-Rate Pass-Through and Monetary Policy Transmission
- Term Premium Variability and Monetary Policy
- Open Market Operations
- Central Banking and Prudential Regulation: How the Wheel Turns
- Central Banks’ New Macroprudential Consensus
- Central Banks and the New Regulatory Regime for Banks
- Macroprudential Regulation of Banks and Financial Institutions
- Central Banking and Crisis Management from the Perspective of Austrian Business Cycle Theory
- The Changing Role of the Central Bank in Crisis Avoidance and Management
- Managing Macrofinancial Crises: The Role of the Central Bank
- Macromodeling, Default, and Money
- Model Uncertainty in Macroeconomics: On the Implications of Financial Frictions
- What Has Publishing Inflation Forecasts Accomplished? Central Banks and Their Competitors
Abstract and Keywords
Many central banks in the world nowadays regard their external communication as an important tool to achieve their goals. This chapter provides an overview of the different ways in which central banks inform the public about the future direction of monetary policy and how successful they have been in recent years. Forward guidance is either part of a monetary policy strategy in which an explicit inflation target is targeted or is part of a strategy that attempts to circumvent the effective lower bound regarding the nominal interest rate. In both cases, forward guidance attempts to influence longer-term interest rates and inflation expectations through the expected future short-term interest rates.
Jakob de Haan is Head of Research at De Nederlandsche Bank and Professor of Political Economy at the University of Groningen.
Jan-Egbert Sturm is Professor of Applied Macroeconomics and Director of KOF Swiss Economic Institute, ETH Zurich.
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