✉news BusinessBanking first seen 18 h ago, last 54 min ago, peak #1
Forward guidance and the limits of public information
Central bank forward guidance is under scrutiny in a new discussion of how much public information policymakers should actually reveal. The argument revisits a classic point in monetary economics: announcing policy intentions can sometimes distort markets rather than stabilise them, since private actors react to what the central bank says in ways that change outcomes. Economists are weighing where the limits of transparency lie.
Why now: Debate over central bank communication and transparency resurfaces amid current monetary policy uncertainty.
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