Jim Leaviss: Central banks should adopt a Maradona approach to guidance

Leaviss' comments were in light of Federal Reserve chairman Jerome Powell's comments last month that the central bank's use of forward guidance would be "significantly smaller" during his tenure, which reopened the debate on the value of forward guidance. Speaking on a panel at a Riksbank conference in Sweden, Powell said: "Forward guidance was highly useful in the crisis. I think it will have a significantly smaller role to play going forward." Leaviss said that forward guidance was the "last tool in the toolbox" for central bankers and surprising markets with policies was a more pow...