Publish or be damned – or why central banks need to say more about the path of their policy rates

Piece published recently in VOX by Richard Barwell and Jagjit Chadha:

“In the wake of the crisis, forward guidance has become a prominent tool of monetary policy. This column argues that central banks should go a step further, communicating to the public the internal policy debate that goes into monetary policy formation – especially regarding uncertainty. Since policy is determined contingent on a range of possible outcomes, forward guidance would become more effective by explicitly communicating how policy would respond along this uncertain path.”

Read the article here.