| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 13461044 | Journal of Monetary Economics | 2019 | 8 Pages |
Abstract
- 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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Fernando Duarte,