Forward guidance with an escape clause : when half a promise is better than a full one

Using a three-equation New Keynesian model we find that incorporating an escape clause (EC) into Forward Guidance (FG) is welfare improving as it allows the monetary authority to avoid cases in which the cost of reduced flexibility is too high. The EC pro

Detalles Bibliográficos
Autores Principales: Florez-Jimenez, Maria Lucia, Parra-Polanía, Julián Andrés
Formato: Documento de trabajo (Working Paper)
Lenguaje:Español (Spanish)
Publicado: Banco de la República 2014
Materias:
Acceso en línea:http://repositorio.banrep.gov.co/handle/20.500.12134/6097