The authors blame time-based guidance for several episodes in which the Committee zigged when the market looked for it to zag, leaving market participants unhappy and, in the authors’ view, the FOMC’s credibility damaged. They argue that the Committee has relied too much on time-based guidance in recent years and should use it only parsimoniously in the future.
Indeed fellow BSPers, our monetary and banking policies have continued to provide the stability needed by our economy to overcome the humps and bumps, and the twists and turns in the global landscape, including the Global Financial Crisis and its lingering effects on economies and central banks. Here in the Philippines, we did not only survive the GFC, we continue to thrive.