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Frederik Neugebauer, Ralf Fendel and Nils Niederhagen
 
''A Note on the Reactions of Real Yields to Different Types of Forward Guidance in the US''
( 2017, Vol. 37 No.4 )
 
 
We analyze the effectiveness of forward guidance in the United States in form of an event study. The results confirm that in general forward guidance has a significant adverse effect on US Treasury Inflation-Protected Securities yields. However, the parallel announcement of asset purchases dampens the effectiveness of forward guidance. By additionally decomposing forward guidance into three types we find that date-based is the most effective form while qualitative-based and threshold-based forward guidance show only minor impacts.
 
 
Keywords: forward guidance, monetary policy, real yields
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
 
Manuscript Received : Sep 07 2017 Manuscript Accepted : Dec 01 2017

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