Over the past two decades, central banks, including the Federal Reserve, have become much more open about the bases for their policy decision.  Indeed, "communication policy" has been one of the key tools with which they have sought to respond to the recent economic crisis; this has even included statements about policy intentions extending years into the future, as with the Federal Reserve's recent commitment to maintain low interest rates until a particular level of unemployment is reached  Yet, some would argue that such declarations about future policy are unwise, given the unforeseeability of the future, and all the more so given the grounds for uncertainty at present.  The lecture will discuss reasons for assigning importance to advance statements about future policy, and will consider the desirability of recent promises by the Federal Reserve in the light of these general principles. 

The lecture will be followed by a question and answer session with the audience. 

Michael Woodford is John Bates Clark Professor of Political Economy

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