Comment on “Forward guidance: Communication, commitment, or both?” by Marco Bassetto

- Forward guidance can be cheap talk in an infinitely repeated game with the public.
- Asymmetric information is necessary for cheap talk to be useful.
- The central bank can build credibility over time to make cheap talk credible.
- When to use forward guidance instead of general transparency remains unclear.
- Adding a lower bound on interest rates does not change the main conclusions.