Trudging through old speeches I have not had time to read right now. And I came across this very interesting quote from the RBA's Guy Debelle about monetary policy setting:
"It's difficult to take risk [quantifiable] and uncertainty [unquantifiable] into account in conducting policy. To some extent in policy, you have to take account of the modal events rather than the tail events, which means that, almost certainly, you're probably going to be wrong, but that you just don't know which direction you are going to be wrong."
