---
title: Expectations and the Transmission of Monetary Policy
url: https://www.ml-quant.com/papers/ssrn/7588262/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-09
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7588262
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7588262
featured: 2026-10-09
citations: unknown
topic: Macro-Finance & Rates
---


# 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.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7588262
- Identifier: SSRN 7588262
- Released: 2026-10-09
- First featured: Quant Letter No. 134 (2026-10-09): https://www.ml-quant.com/issues/2026-10-09/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Vicente Jimenez-Gimpel, Tomás Caravello

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