What monetary policy narrative after forward guidance?

11 October 2022 · François Villeroy de Galhau, Governor of the Banque de France (France)

Summary written by Dark Majestic in its own words · topics: monetary policy and interest rates, trade, fragmentation and geopolitics, technology, ai and cyber risk

11 Oct 2022 · François Villeroy de Galhau Wiki · Banque de France WikiWhat monetary policy narrative after forward guidance?

ContextLecture at Columbia University in New York; the Banque de France keeps prices stable and asks how to communicate policy after forward guidance.

Why it mattersVilleroy says forward guidance has lost its usefulness.

Problems raised

Forward guidance has lost usefulness.
Uncertainty is high.
Fragmentation threatens cooperation.

Solutions proposed

Be pragmatic and data-dependent.
Build a new monetary policy narrative.
Strengthen international coordination.

Read full speech on bis.org ↗

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