Woodford's forward guidance—why not use forward contracts instead?

Woodford's forward guidance—why not use forward contracts instead?

| convenience yield, forward guidance, Michael Woodford, quantitative easing, zero lower bound

...once the supply of reserves is sufficient to drive the short-term riskless rate to zero..., there is no reason to expect further increase...

Transporting the macroblogosphere back to 1809: Usury Laws and the 5% upper bound

Transporting the macroblogosphere back to 1809: Usury Laws and the 5% upper bound

| Bank of England, forward guidance, Henry Thornton, history of thought, inflation, Miles Kimball, Nick Rowe, nominal interest rates, Paul Krugman, real interest rate, usury, zero lower bound

The zero-lower bound is the well-known 0% floor that a note-issuing bank hits whenever it attempts to reduce the interest rate it offers on ...