He argues against central banks giving forward guidance, including announcements about when they will begin to tighten monetary policy and by how much.
Rather, “they need to reintroduce true two-way risk, so that asset prices again reflect underlying fundamentals … Central bankers need to communicate more clearly how they think about risks and opportunities in the economy and financial markets, and then let private investors decide the balance of risks and reward for themselves.” Other critics have focused on the usefulness of forward guidance.