This uncertainty makes it very challenging to provide precise guidance on the path for the federal funds rate. With this in mind, I will turn to the main topic I'd like to discuss today, which is the potential role that explicit forward guidance can play as a monetary policy tool.
4 Therefore, the use of the term "banking crisis" in our research refers to major disruptions in a country's banking system, not just minor downturns or disturbances. By focusing on banking crises in our research paper, we were able to isolate the impact of banks on the provision of credit and liquidity to firms during times of distress.