Clarity about exit strategy is important for the success of policy even during periods of turmoil, new research published by the New York Federal Reserve, and co-authored by Michael Woodford and Vasco Cúrdia, posits.

The research shows that the development of an integrated framework for policy deliberations, suitable both for crisis periods and for more normal times, is a matter of considerable urgency for the world's central banks.

The research introduces a new model of the monetary