13  In related work, Bohi (1989) and Bernanke, Gertler, and Watson (1997) provide evidence that macroeconomic policy, rather than the behavior of oil prices, was the most important source of macroeconomic instability in the 1970s.
So, how do we at the Bank of Canada deal with the uncertainty inherent in the models, indicators, and data we use when conducting monetary policy? 2  Responding to uncertainty As CFA charter holders, you'll be aware of Peter Bernstein's writings on risk. His advice is to treat uncertainty as a "friend" – "with care, consideration, and attention to consequences."