Forward guidance
Central bankers give mixed review of BoE forward guidance
One third of respondents to CentralBanking.com poll say the Bank of England’s second phase of forward guidance is an admission that its first attempt was a failure
Fed paper challenges New Keynesian orthodoxy
Working paper argues sticky prices, which underpin most central banks’ New Keynesian models, can produce implausible results at the zero lower bound, with major implications for policy
Rosengren calls on FOMC to update forward guidance
Boston Fed president Eric Rosengren – who is not on the FOMC this year – calls for guidance to be increasingly linked to achieving the dual mandate
FOMC minutes reveal disagreement on forward guidance
Members emphasised ‘uncertainty associated with using thresholds, triggers, or floors' as part of forward guidance in March video conference
Norges Bank governor says clear 'reaction pattern' lessens attention on forward guidance
Øystein Olsen tells Columbia University audience the better central banks become at communicating their reaction pattern, the less attention their forward guidance will receive
ECB says forward guidance a success
European Central bank annual report for 2013 finds forward guidance helped to stabilise money market conditions and anchor market expectations
FOMC member says 3% growth would prompt fed funds rate 'lift-off'
Atlanta Fed president Dennis Lockhart advocates a 'dashboard' approach to forward guidance and says quantitative easing is tapering 'predictably'
Parliament eyes Riksbank's off-mark inflation forecasts
Report on Swedish central bank's performance in 2013 shows its inflation forecasts were off the mark; flawed forecasts have forced several central banks to upend policies in the past months
Kocherlakota says Fed's new guidance creates uncertainty
In explanation of dissent, Narayana Kocherlakota says he would have preferred the FOMC to stick with quantitative guidance by lowering unemployment threshold to 5.5%
Fed sends mixed messages on future interest rates
Dovish statement by FOMC yesterday signals low interest rates for ‘considerable' time after QE ends, but voting members' projections see interest rates heading upwards
Draghi calls for 'good' form of bank deleveraging
By encouraging creative destruction in the banking sector, the ECB facilitates creative destruction in the wider economy, Draghi tells Vienna crowd
BIS economists give forward guidance mixed review
Research in quarterly review says forward guidance has shaped market expectations but warns it could ‘encourage excessive risk-taking’ in the markets
Forward guidance ‘escape clause' increases effectiveness, says Colombian paper
Incorporating a threshold into forward guidance means central banks can change course when economic conditions dictate - meaning it is welfare-improving
Yellen hits back at critics over 'discriminatory' treatment of foreign banks
Following EU complaints, Fed chair tells Senate panel that new regulations are essentially the same as those faced by US banks abroad; Bitcoin is outside Fed's remit
Fed transcripts reveal origins of modern forward guidance
Transcripts from the FOMC’s meetings in 2008 reveal the considerations that informed forward guidance at the time and continue to influence central banks’ communication policy today
One in five in UK 'aware of forward guidance'
Policy may indirectly affect households' interest rate expectations and spending through media reports and effects on business spending, according to report
Bank of England unveils forward guidance ‘phase two'
The current policy will be scrapped when UK unemployment reaches the bank's 7% threshold ‘in the coming months' in favour of a less easily defined version aimed at reducing labour market slack
Yellen says labour market recovery ‘far from complete' in first appearance as chair
New Fed chair says she expects ‘a great deal of continuity in the FOMC's approach to monetary policy' going forward; downplays unemployment rate for evaluating labour market conditions
Fed's Plosser wants to end asset purchases by summer
Philadelphia Fed president and FOMC member who voted for the Fed's ‘measured' $10bn taper in January reiterates earlier calls to scale back QE at ‘faster pace'
‘Normal' Norway has no need of forward guidance, says monetary policy chief
Head of Norges Bank's monetary policy division says interest rate forecasts are all the forward guidance his country needs, as the crisis did not hit Norway to the same extent
Fed 'policy shocks' cause both dollar and foreign interest rates to fall, Boston Fed paper finds
Expansionary monetary policy shocks by the Federal Reserve leads to dollar depreciation, while similar 'unexpected expansionary announcements' by foreign central banks cause it to appreciate
Interest swaps with longer maturities more sensitive to macroeconomic news, DNB paper suggests
The impact in Sweden of macroeconomic news on the sensitivity of interest rate swaps was reduced at the effective zero lower bound at short maturities but not at longer maturities, according to paper
Bank of England will recalibrate forward guidance next month
Governor Mark Carney tells an audience in Davos he would prefer the next stage of forward guidance not to focus solely on unemployment, but on ‘overall conditions' in the economy
Vaguer guidance in vogue as unemployment continues to confound
As UK and US unemployment brushes the thresholds of monetary policy forward guidance, central banks' next moves are anything but straightforward