Kansas Fed paper looks at conditional forward guidance
Date-based forward guidance would be effective without yield curve control, research says
A more explicit forward guidance commitment by the Federal Reserve could help ease monetary conditions, a researcher from the Federal Reserve Bank of Kansas says.
A date-based forward guidance would be effective without yield curve control (YCC), Brent Bundick finds. An outcome-based commitment might need the reinforcement of YCC, he argues.
In August 2011, the Fed’s date-based guidance to keep rates at the effective lower bound until “at least through mid-2013” lowered Treasury yields and
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