Central Bankers on Policy Guidance in 60 Seconds

The video discusses forward guidance, focusing on interest rates and asset purchases. It explains how guidance should be conditional and linked to the economic outlook. The formation of inflation expectations is explored, considering both forward and backward-looking perspectives. The video also addresses the impact of rounding errors on economic agents like households and businesses, concluding with insights on policy implications.

What does the speaker imply about the significance of rounding errors in economic terms?

What is the importance of being able to 'get out' as mentioned in the text?