A1477
Title: Forward guidance and conventional monetary policy shocks: Identification and assessment
Authors: Mirela Sorina Miescu - Lancaster University (United Kingdom) [presenting]
Abstract: In January 2012 the Federal Reserve has introduced forward guidance in the form of a published policy-rate path. We exploit this change in the conduct of forward guidance and the zero lower bound (ZLB) constraints to identify a forward guidance shock and a conventional monetary policy shock. The two shocks produce conventionally signed impulse responses of output, prices, and financial variables. In line with the recent theories that help resolve the forward guidance puzzle, we find attenuated effects of forward guidance compared to the standard monetary policy shock.
