For example, the Monetary Policy Statement released yesterday features an alternative scenario and discussion of the (distinct) possibility  4  Blinder et al. (2008) discuss these aspects of monetary policy communications in detail. 5  Svensson (2006) and Woodford (2005) offer useful discussions of this principle. 6  Bergstrom and Karagedikli (2013).
BIS central bankers’ speeches  7  that the exchange rate might follow a different path, higher or lower, to that in our current central projection. 5. Conclusion  Forecasting is a difficult but essential part of modern monetary policy.