8  BIS central bankers’ speeches  information about policy plans has helped Fed policymakers deal with the constraint posed by the effective lower bound on short-term interest rates; in particular, by offering guidance about how policy will respond to economic developments, the Committee has been able to increase policy accommodation, even when the short-term interest rate is near zero and cannot be meaningfully reduced further.44 The Committee has also sought to influence interest rates further out on the yield curve, notably through its securities purchases.
BIS Review 38/1999  6  The success of a fixed exchange rate system or of a floating system as well as the adoption of an anchor currency are all dependent on the consistency and credibility of domestic economic policy. (3) When financial markets are strained, short-termism may present those responsible for monetary policy and exchange rate policy with a dilemma.