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Forward guidance – what does it mean and will it work?
Publication year - 2013
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.12032
Subject(s) - monetary policy , unemployment , economics , work (physics) , state (computer science) , unemployment rate , monetary economics , labour economics , macroeconomics , mechanical engineering , algorithm , computer science , engineering
The Bank of England has introduced ‘state‐contingent threshold guidance’, stating that it will not consider tightening monetary policy until the ILO unemployment rate has fallen below 7%. This is a similar policy to that adopted by the Fed in the US and represents an attempt to better manage the expectations of households, firms and financial markets about future changes in monetary policy.…