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Central Bank Forward Guidance and the Signal Value of Market Prices

Author(s): Morris, Stephen; Shin, Hyun Song

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dc.contributor.authorMorris, Stephen-
dc.contributor.authorShin, Hyun Song-
dc.date.accessioned2019-07-10T20:50:29Z-
dc.date.available2019-07-10T20:50:29Z-
dc.date.issued2018-05en_US
dc.identifier.citationMorris, Stephen, Shin, Hyun Song. (2018). Central Bank Forward Guidance and the Signal Value of Market Prices. AEA PAPERS AND PROCEEDINGS, 108 (572 - 577. doi:10.1257/pandp.20181081en_US
dc.identifier.issn2574-0768-
dc.identifier.urihttp://arks.princeton.edu/ark:/88435/pr17145-
dc.description.abstractCentral banks use forward guidance to steer market expectations of future monetary policy moves. At the same time, they rely on market prices to gauge the likely path of the economy and the appropriate stance of monetary policy. This two-way flow between market prices and forward guidance can create a circularity. Market signals may be rendered less informative when the central bank heeds market signals in formulating forward guidance, as those market signals reflect the diminished weight placed by market participants on their private signals.en_US
dc.format.extent572 - 577en_US
dc.language.isoenen_US
dc.relation.ispartofAEA PAPERS AND PROCEEDINGSen_US
dc.rightsFinal published version. Article is made available in OAR by the publisher's permission or policy.en_US
dc.titleCentral Bank Forward Guidance and the Signal Value of Market Pricesen_US
dc.typeJournal Articleen_US
dc.identifier.doidoi:10.1257/pandp.20181081-
dc.identifier.eissn2574-0776-
pu.type.symplectichttp://www.symplectic.co.uk/publications/atom-terms/1.0/conference-proceedingen_US

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