In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based onyour previous answer, can we easily measure the effectsof such a strategy?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
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In which economic conditions would a central bank
want to use a “forward-guidance” strategy? Based on
your previous answer, can we easily measure the effects
of such a strategy?

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