First impressions matter: Signalling as a source of policy dynamics

We provide the first direct empirical support for the importance of signalling in monetary policy by testing two key predictions from a novel structural model. First, all policymaker types should become less tough on inflation over time and secondly, types that weigh output more should have a more p...

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Bibliographic Details
Main Authors: Hansen, S, McMahon, M
Format: Journal article
Published: Oxford University Press 2016