BoJ paper models impact of guidance on expectations

bank-of-japan-new
Bank of Japan

Rule-based forward guidance (FG) "significantly mitigates a decline in inflation and output growth in a crisis", according to a working paper published by the Bank of Japan today (June 27).

In Forward Guidance as a Monetary Policy Rule, Mitsuru Katagiri finds the central bank can influence inflation and output growth by changing the expectations of private agents. This applies both at and before reaching the effective lower bound (ELB).

The author's results imply "the central bank can positively

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.