Forward guidance contracts

dc.contributor.authorGersbach, Hans
dc.contributor.authorHahn, Volker
dc.contributor.authorLiu, Yulin
dc.date.accessioned2019-02-20T14:13:18Z
dc.date.available2019-02-20T14:13:18Z
dc.date.issued2019-12
dc.description.abstractWe examine “Forward Guidance Contracts,” which penalize central bankers for choosing high interest rates. We integrate those contracts into the New Keynesian Framework and show that they can be used to overcome a liquidity trap. Moreover, although the government takes only a share of the social benefits into account when it has to decide whether to offer the contract, we demonstrate that for plausible parameter values the government will always find it desirable to offer the contract in a liquidity trap but not in normal times. Finally, we show that the optimal duration of such contracts is typically very short.eng
dc.description.versionpublishedde
dc.identifier.doi10.1017/S1365100518000093eng
dc.identifier.urihttps://kops.uni-konstanz.de/handle/123456789/45132
dc.language.isoengeng
dc.subjectForward Guidance, Zero Lower Bound, Central Banks, Incentive Contracts, Transparencyeng
dc.subject.ddc330eng
dc.titleForward guidance contractseng
dc.typeJOURNAL_ARTICLEde
dspace.entity.typePublication
kops.citation.bibtex
@article{Gersbach2019-12Forwa-45132,
  year={2019},
  doi={10.1017/S1365100518000093},
  title={Forward guidance contracts},
  number={8},
  volume={23},
  issn={1365-1005},
  journal={Macroeconomic Dynamics},
  pages={3386--3423},
  author={Gersbach, Hans and Hahn, Volker and Liu, Yulin}
}
kops.citation.iso690GERSBACH, Hans, Volker HAHN, Yulin LIU, 2019. Forward guidance contracts. In: Macroeconomic Dynamics. 2019, 23(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093deu
kops.citation.iso690GERSBACH, Hans, Volker HAHN, Yulin LIU, 2019. Forward guidance contracts. In: Macroeconomic Dynamics. 2019, 23(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093eng
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kops.sourcefieldMacroeconomic Dynamics. 2019, <b>23</b>(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093deu
kops.sourcefield.plainMacroeconomic Dynamics. 2019, 23(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093deu
kops.sourcefield.plainMacroeconomic Dynamics. 2019, 23(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093eng
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source.periodicalTitleMacroeconomic Dynamicseng

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