Forward guidance and heterogeneous beliefs

Central banks' announcements that rates are expected to remain low could signal either a weak macroeconomic outlook, which would slow expenditures, or a more accommodative stance, which may stimulate economic activity. We use the Survey of Professional Forecasters to show that, when the Fed gav...

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Bibliographic Details
Main Authors: Andrade, P. (Author), Gaballo, G. (Author), Mengus, E. (Author), Mojon, B. (Author)
Format: Article
Language:English
Published: American Economic Association 2019
Online Access:View Fulltext in Publisher

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