Editing Monetary policy (section)

=== Forward guidance ===
{{Main|Forward guidance}}
Forward guidance is a communication practice whereby the central bank announces its forecasts and future intentions to influence market expectations of future levels of [[interest rates]].<ref>{{cite journal |last1=Nelson |first1=Edward |title=The Emergence of Forward Guidance As a Monetary Policy Tool |url=https://www.federalreserve.gov/econres/feds/the-emergence-of-forward-guidance-as-a-monetary-policy-tool.htm |journal=Finance and Economics Discussion Series |publisher=Federal Reserve |access-date=13 August 2023 |language=en |doi=10.17016/FEDS.2021.033 |date=17 May 2021|volume=2021 |issue=32 |pages=1–59 |s2cid=235478990 |doi-access=free }}</ref> As expectations formation are an important ingredient in actual inflation changes, credible communication is important for modern central banks.<ref>{{cite book |last1=Blanchard |first1=Olivier |last2=Amighini |first2=Alessia |last3=Giavazzi |first3=Francesco |title=Macroeconomics: a European perspective |date=2017 |publisher=Pearson |location=Harlow London New York Boston San Francisco Toronto Sydney Dubai Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town São Paulo Mexico City Madrid Amsterdam Munich Paris Milan |isbn=978-1-292-08567-8 |edition=3rd}}</ref>