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| Frederik Neugebauer, Ralf Fendel and Nils Niederhagen |
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| ''A Note on the Reactions of Real Yields to Different Types of Forward Guidance in the US'' |
| ( 2017, Vol. 37 No.4 ) |
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| 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. |
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| Keywords: forward guidance, monetary policy, real yields |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
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| Manuscript Received : Sep 07 2017 | | Manuscript Accepted : Dec 01 2017 |
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