Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214662 
Year of Publication: 
2020
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 03/2020
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
We quantify the macroeconomic effects of interest rate forward guidance in an estimated medium-scale two-agent New Keynesian (TANK) model. In general, such models can dampen or amplify the power of forward guidance compared to a representative agent model. Our empirical estimates indicate a dampening, as there is sufficient countercyclical redistribution.An interaction with asset purchases gives rise to non-linear effects that depend on the horizon of forward guidance.
Subjects: 
Forward Guidance
Hand-to-mouth households
Redistribution
Bayesian Estimation
Asset purchase program
JEL: 
E44
E52
E62
ISBN: 
978-3-95729-665-8
Document Type: 
Working Paper

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