We too must carefully decide on when, how fast, and in what order the unconventional measures – including our commitments to provide virtually unlimited liquidity to banks and secondary markets for government debt – shall be reversed. We too must correctly anticipate the implications of different reversing options for macroeconomic and financial stability. These are obviously difficult tasks given the lack of past experiences.
Yet I have no doubt that we will successfully master these difficulties. Forward guidance on exit The second key challenge is to ready the public for an eventual exit from accommodative policies. Striking the right balance between clarity and transparency will be especially difficult  5  This has been convincingly argued Krishnamurthy at this year’s Jackson Hole conference.