Against this background, the financial turmoil has raised new issues for monetary policymakers. It is now more difficult to forecast economic developments and to assess the effects of policy decisions and communication on markets, on expectations and, ultimately, on the real economy. 11  4  See O. Blanchard and J. Galì, cit.
BIS Review 92/2008  The consequences of the recent events for prudential regulation and financial supervision have been examined in the Financial Stability Forum report “Enhancing Market and Institutional Resilience”. I will not dwell on these issues today, but instead focus on the lessons most directly relevant to monetary policy design and communication.