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Is "forward guidance" a step backwards?

It’s going a bit far to claim that the Fed has lost all credibility simply because most in the markets were surprised by its decision not to begin winding down its asset purchase programme this month. Nonetheless, the communication difficulties which both the Fed and the Bank of England have experienced in recent months – and the easier time which the ECB and the Bank of Japan have had – suggest that simpler policy frameworks may be more effective.

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