Asia's Developing Future

Central banks are running out of wiggle room, having lowered interest rates, in some cases to zero or negative, and are losing influence over markets becoming accustomed to a low-rate regime. “Forward guidance” is losing traction. Narayana Kocherlakota, former president of the Minneapolis Federal Reserve Bank, says central banks can try to guide public perception by hinting at their intentions, a practice known as forward guidance in banking circles, and he used to think that once interest rates were at the lowest they could go—a position called the lower bound—forward guidance was a good tool to use. But Kocherlakota, now professor of economics at the University of Rochester, told the annual conference of the Asian Development Bank Institute he has changed his mind. Read the transcript https://bit.ly/2pKGfQI About the speaker Narayana Kocherlakota is a now professor of economics at the University of Rochester. Watch the whole presentation https://youtu.be/BKnJS37KbGE?t=2420 Read the book https://www.a