We also had to figure out how and what to communicate about these new tools. Thus, well-understood communication practices about traditional policy tools gave way to untested ways to describe these new tools. The task was further complicated because one of the unconventional tools was so-called forward guidance.
Forward guidance seeks to inform the public about the future path of policy rather than describing a policy action taken today. BIS central bankers’ speeches  1  Thus, effective forward guidance is all about communication and what it conveys or doesn’t convey.