Yellen, Carney, Kuroda and Draghi all together now !

I’ll update was they go

Mario Draghi:

  • Forward guidance has become a full policy instrument
  • Fwd guidance succeeded to prevent to big an impact on long term rates from short term changes
  • The experience has been successful

Janet Yellen:

  • Appropriate path needs to be explained
  • Forward guidance should be conditional on the outlook
  • Maker participants look at the Summary of Economic Projections (Yellen surely does)
  • Always try to emphasise economic conditionality in Forward Guidance
  • Important to communicate the expected “gradual” rate path
  • Fed’s various views avoid Groupthink
  • Have experimented trying to produce consensus committee view but was unsuccessful

Haruhiko Kuroda: (He’s still a happy man watching him)

  • Downturn of oil prices weighed on both actual inflation and expectations as Japan imports most of its energy.Therefor QQE got expanded
  • Inflation expectations started to bring higher again after our YCC set in (well …)
  • Forward guidance worked to some extend but inflation expectations looking kind of backwards
  • Continue strong accommodative monetary policy to attain our goals
  • Communication is the policy itself

Mark Carney:

  • We most importantly communicate to the people we serve, the public (right ..)
  • Using changing channels to communicate to reach the bigger audience : FT 30k readers, FB 30m in UK (Zückerberg sponsored ?)
  • UK is still operating under exceptional circumstances
  • Would like to see a reasonable transition period post-Brexit

There’s not going to be much to move the markets here , move on

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