Bank of Israel researchers propose exchange rate-based forward guidance

bank-of-israel-building
The Bank of Israel

Forward guidance, particularly in small open economies, would be more credible if linked to external factors such as the exchange rate, according to researchers at the Bank of Israel.

A paper authored by a group of economists in the Bank of Israel's research department examines the experience of other central banks in conducting forward guidance.

"The most important factor in the success of guidance is credibility," the authors say. The success of the policy hinges on its ability to convince the

To continue reading...

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 indvidual account here: