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Forward guidance and expectation formation : a narrative approach / by Christopher S. Sutherland.FB3-5/2020-40E-PDF

"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.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.891980&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleForward guidance and expectation formation : a narrative approach / by Christopher S. Sutherland.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-40
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Cover title.
  • "Last updated: September 28, 2020."
  • Includes bibliographical references (pages 44-48).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020.
  • ©2020
Author / Contributor
  • Sutherland, Christopher S., author.
Description1 online resource (ii, 48 pages) : graphs.
Catalogue number
  • FB3-5/2020-40E-PDF
Subject terms
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