00000nam 2200000zi 4500 9.891980 CaOODSP 20221107173034 m o d f cr cn||||||||| 201001t20202020oncd ob f000 0 eng d CaOODSP eng rda CaOODSP FB3-5/2020-40E-PDF Sutherland, Christopher S., author. Forward guidance and expectation formation : a narrative approach / by Christopher S. Sutherland. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (ii, 48 pages) : graphs. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-40 Cover title. "Last updated: September 28, 2020." Includes bibliographical references (pages 44-48). "How forward guidance influences expectations is not yet fully understood. To study this issue, I construct central bank data that includes forward guidance and its attributes, central bank projections, and quantitative easing, which I combine with survey data. I find that, in response to a change in forward guidance, forecasters revise their interest rate forecasts in the intended direction by five basis points on average. The effect is not attributable to central bank information effects. Instead, when forming rate expectations, forecasters place full weight on their own inflation and growth forecasts and zero weight on those of the central bank"--Abstract, page ii. Banks and banking, Central. Transmission mechanism (Monetary policy) Banques centrales. Mécanismes de transmission (Politique monétaire) Bank of Canada, issuing body. Staff working paper (Bank of Canada) 1701-9397 ; 2020-40. (CaOODSP)9.806221 PDF 742 KB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-40-eng.pdf