Forward guidance as a tool of the European Central Bank’s monetary policy
Journal Title: Współczesna Gospodarka - Year 2019, Vol 10, Issue 2
Abstract
The purpose of this article is to take a closer look at one of the most unconventional instruments of monetary policy which is the Forward Guidance. This instrument is increasingly more often adopted by central banks. What is more, it is also used by the European Central Bank which implemented this approach for the first time in 2013. The first part of the article will be focused on presenting a theoretical approach of forward guidance, while the following part will describe examples of implementation of this instrument by the European Central Bank as the new way of communication with the market. The example of forward guidance use by the European Central Bank covers the way of communication of future monetary policy regarding the interest rates. The data presented in this paper shows a positive effect of the forward guidance approach. This method of communication has brought a clearer view of monetary policy adopted by the European Central Bank. Moreover it limited some uncertainty showed by the market participants regarding the level of future interest rates. The positive effects of the forward guidance lead not only to the continuous but also widespread use of this approach by the European Central Bank.
Authors and Affiliations
Damian Werbowy
Selected professional activation instruments of women during pregnancy and childbirth in Poland
This article describes selected professional activation instruments of women during their pregnancy and after birth in Poland. An author indicates the main macroeconomic aggregates in the context of women’s fertility and...
Struktura kapitału polskich spółek w świetle wybranych teorii
W artykule przeanalizowano zależności pomiędzy strukturą kapitału przedsiębiorstw a wybranymi czynnikami, m.in.: stopniem płynności, ilością posiadanych środków trwałych, wielkością przedsiębiorstwa, czy rentownością prz...
E-commerce market and perspectives for the reverse commerce
E-commerce has been evolving from being a purely niche phenomenon to owning a vital share in economies of developed countries. Growth of such distribution and sales channel has been highly correlated with technological i...
Korzyści aglomeracji w otoczeniu sektora kultury
Niniejszy artykuł stanowi próbę innego odczytania kultury, zinterpretowania jej w wymiarze ekonomicznym, jako istotnego lokalnego aktywa rozwojowego sprzyjającego tworzeniu się korzyści aglomeracji poprzez mechanizm obe...
Forward guidance as a tool of the European Central Bank’s monetary policy
The purpose of this article is to take a closer look at one of the most unconventional instruments of monetary policy which is the Forward Guidance. This instrument is increasingly more often adopted by central banks. Wh...