4 But, to make the outputs operational, we need reasonable conviction in the reliability of our estimates of current resource utilization and inflation or, for some alternative rules that have been proposed, forecasts of these model inputs. 5 And it is these kinds of estimates that appear especially uncertain during this period of economic history, emblematic of the challenging task ahead.
In particular, some countries are worried about the potential for volatile capital flows to be destabilising for their economies. The concern is that capital inflows in the near term will later turn into capital outflows when interest rates in the advanced economies do eventually normalise, and that this could be disruptive.