Comment on “Forward guidance: Communication, commitment, or both?” by Marco Bassetto

A-Tier
Journal: Journal of Monetary Economics
Year: 2019
Volume: 108
Issue: C
Pages: 87-92

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

•Forward guidance can be cheap talk in an infinitely repeated game with the public.•Asymmetric information is necessary for cheap talk to be useful.•The central bank can build credibility over time to make cheap talk credible.•When to use forward guidance instead of general transparency remains unclear.•Adding a lower bound on interest rates does not change the main conclusions.

Technical Details

RePEc Handle
repec:eee:moneco:v:108:y:2019:i:c:p:87-92
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25