Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168063
Authors: 
Ahrens, Steffen
Lustenhouwer, Joep
Tettamanzi, Michele
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Monetary Policy I C06-V1
Abstract: 
We study if central banks can manage market expectations by means of forward guidance in a New Keynesian learning-to-forecast experiment. Subjects observe public inflation projections by the central bank along with the historic development of the economy and subsequently submit their own inflation forecasts. We find that the central bank can significantly manage market expectations through forward guidance and that this management strongly supports monetary policy in stabilizing the economy.
JEL: 
C92
E32
E37
E58
Document Type: 
Conference Paper

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