Finally, globalization has probably made the link between policy actions and economic outcomes more uncertain by, among other things, strengthening the role of the exchange rate in the monetary policy transmission mechanism. Recent increases in prices for oil and other commodities illustrate some of the complications that globalization creates for policymaking.
The use of multiple models helps to provide comprehensive  2  For further details on uncertainty in the conduct of monetary policy, see P. Jenkins and D. Longworth. 2002. "Monetary Policy and Uncertainty." Bank of Canada Review (Summer 2002). Available at: http://www.bankofcanada.ca/en/review/2002/longworth_e.pdf. 3  P.L. Bernstein. 2006. "Risk: The Hottest Four-Letter Word in Financial Markets."