This research quantifies the effects of the unconventional monetary policies adopted by the Federal Reserve on the expectations formed by professional forecasters. Specifically, it evaluates whether the implementation of large scale asset purchases and forward guidance has been able to influence expectations regarding inflation, unemployment, GDP growth, consumption, investment and industrial production.
Unconventional monetary policies have proved effective in tilting agents' expectations towards what central bankers want. The asset purchase programme has generally been more effective than forward guidance, as its effects have been stronger and longer-lasting. In both cases, contractionary policies have a stronger effect than expansionary ones.
