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Article snippet: FRANKFURT — Forward guidance might sound like something to mount on the dashboard of a car. But in the world of monetary policy it is a crucial concept, one that will be the focus of the European Central Bank’s meeting on Thursday. The bank is preparing to ease off on the stimulus it has been providing to the eurozone economy. Among investors and economists, there is intense interest in how quickly it will reduce its purchases of government and corporate bonds, a form of money printing known as quantitative easing. To prevent market turmoil, Mario Draghi, the bank’s president, wants to give investors ample warning of what is coming. But he also wants to leave room to maneuver if economic conditions change. Navigating that communications minefield is what forward guidance is about. The European Central Bank is not expected to announce any policy changes on Thursday when it meets in Tallinn, Estonia. But Mr. Draghi could provide important clues about the bank’s intentions. Here is what to listen for: The European Central Bank has promised to continue buying bonds at least through the end of the year “or beyond, if necessary.” It is the “beyond” part that has analysts worked up. Some analysts predict that Mr. Draghi may indicate how long quantitative easing will last beyond December, and how quickly the volume of the purchases will be reduced or “tapered.” Such a statement would be a significant change in forward guidance. But other analysts think the central bank w... Link to the full article to read more