We cope with the challenge of prediction as best we can by devoting substantial resources to economic forecasting, by monitoring developments in financial markets, by speaking regularly with an extensive network of business contacts, and by being flexible with our policy actions. But the reality is that the private sector cannot look to the central bank to eliminate all risk.
Real decisions have uncertain outcomes, and sometimes the result is adverse. But businesses and households must be prepared to take the reasonable risks associated with modern economies. And I am certain that businesses will return to a more normal pace of investment, although I am less certain of the timing.