The center of the forecast distribution, of necessity, is still important to our deliberations but, more than many people realize, policymaking is to a substantial extent focused on the potential deviations from the central forecast and the costs should those outcomes prevail. In short, our policy behavior is the result of examining the implications of the interaction of probability distributions and loss functions.
Su Ning: China’s inter-bank payment and clearing service Address by Mr Su Ning, Deputy Governor of the People’s Bank of China, at the press conference on the launch of the Electronic Commercial Draft System, Beijing, 28 October 2009. * * * Dear guests, Friends from the media, Ladies and gentlemen, Good morning.