We discuss the theoretical rationale for central bank communication about future policy
rates, either as part of inflation targeting or in the form of forward guidance. We also …

In a remarkable 180-degree turn from their long-standing tradition of secrecy, many central
banks nowadays consider communication an important policy instrument. 1 Blinder et …

This paper examines the effectiveness of forward guidance shocks in the US. We estimate a
New Keynesian model with imperfect central bank credibility and heterogeneous …

We study today's two-tier money creation and destruction system: Commercial banks create
bank deposits (privately created money) through loans to firms or asset purchases from the …

We study money creation and destruction in today's monetary architecture within a general
equilibrium setting. Two types of money are created and destructed: bank deposits, when …

We examine forward guidance when an economy faces negative natural real interest rates
and subsequent supply shocks. We introduce two versatile designs: escaping and switching …

We study today's two-tier money creation and destruction by commercial banks via
deposit/loan creation to firms and by central banks via deposit/loan creation to commercial …

Zusammenfassung Bisherige Befunde zeigen, dass Inflationserwartungen nicht vollständig
der Hypothese Rationaler Erwartungen folgen. Statt kognitiver Begrenzungen sollen hier …

Abstract We examine “Forward Guidance Contracts", ie contracts that make central bankers'
utility contingent on the precision of their interest-rate forecasts. We integrate these contracts …

We examine how forward guidance can be designed when an economy faces a negative
natural real interest-rate shock and a subsequent supply shock. We use a standard New …