All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

 
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

  This abstract has been downloaded 1311 times                The Full PDF of this paper has been downloaded 166584 times