Expectations and the Transmission of Monetary Policy
Optimal rate-setting creates time-inconsistency: market expectations become too sensitive to policy surprises, amplifying real effects of central bank forecast errors; less aggressive rules cut output volatility.
Featured in No. 134 on 9 Oct 2026 · on release day
- Released
- 9 Oct 2026
- First featured
- No. 134 · 9 Oct 2026
- Published in
- Not yet, as far as Semantic Scholar knows
- Fanfare
- 3 of 5
- Identifier
- SSRN 7588262
- Authors
- Vicente Jimenez-Gimpel and Tomás Caravello
Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).