Forward Guidance "Mark 2" from Carney

These days, they're the words on every central banker's lips. Or rather—it's the reason why they're saying what they're saying. Forward guidance. It's a tool adopted by central banks—so that along with their forecasts they can influence market expectations of what might happen to interest rates and how monetary policy will look in future. It was introduced by Ben Bernanke, the then-chairman of the Federal Reserve in late 2012.

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