Forward Guidance is not Forward Commitment

Some recent discussions I have had with those who follow monetary policy in the UK and US, and indeed some who actually make that policy, su...

Why Mark Carney is a breath of fresh air

The British establishment is excessively secretive, and the Bank of England is part of that establishment. I have for too many years (e.g. p...

Adapting forward guidance

I have a personal form of forward guidance: that I try and wait a day between writing and publishing blog posts. So yesterday I wrote a pos...

Werning on Liquidity Trap Policy

For macroeconomists I finally got round to reading this paper by Iván Werning - Managing a Liquidity Trap: Monetary and Fiscal Policy. It t...

In defence of forward guidance

Although this post is prompted by the bad press that the Bank of England’s forward guidance has been getting recently, much of what I have t...

The MPC’s Forward Guidance

So, as expected , the MPC ( pdf ) is catching-up with the Fed , in introducing forward guidance that looks very similar. There are two notab...

Playing catch-up at the Bank of England

On Wednesday (7th August) the Bank of England will announce what it intends to do on forward guidance. Many seem to expect it to follow the...