If the consumers’ confidence with regard to the future were to decline, together with rising unemployment and a weak development in the stock markets, there was a great risk that activity in the US economy would be subdued. Companies often react to uncertainty with a “wait and see” policy, which means that they postpone investments. In addition, there was uncertainty as to whether the financial system could cope with the problems arising as a result of the devastation in New York. On top of this, certain sectors in the global economy would be hit directly, for instance, insurance companies, airlines, tourism, etc. All of this risked worsening the economic downturn both in the USA and in other countries. The role of a central bank in this type of situation is to contribute to creating confidence and promoting financial stability. It is then important to act quickly and resolutely. This may be considered to contradict the claim that it is important for the Riksbank to act predictably. However, for those who have observed the central banks’ actions on other occasions when problems in the financial system have arisen and confidence in the future has declined, such as in 1987 and 1998, it should be no surprise that central banks act to support the economy with a lower interest rate and greater supply of liquidity. This is to counteract a downward spiral in the global economy as the result of a decrease in the willingness to take risks.
In order to maintain the investment strategy over time, a good understanding and broad acceptance of this risk are essential. 1 NBIM Discussion Note 1/2016: The equity risk premium, NBIM Discussion Note 2/2016: Risk and return of  different asset allocations, NBIM Discussion Note 3/2016 (forthcoming): Global growth and equity returns, NBIM Discussion Note 4/2016 (forthcoming): Asset allocation with government revenues and spending commitments. 2 NBIM Discussion Note 1/2016: The equity risk premium. 3 See for example Campbell J.Y., C. Pfluger and L. M. Viceira (2015): Monetary Policy Drivers of Bond and Equity  Risks, Working Paper 14–031, Harvard Business School. 7/7  BIS central bankers' speeches