Behind the BoJ's risk balance charts
Hidetoshi Kamezaki, a member of the policy board of Bank of Japan, explained the background behind the introduction of the central bank's new risk-balance charts.
The charts aggregate probability distributions from individual board members regarding the likelihood of divergence from their forecasts, said Kamezaki.
For example, the probability distribution for the rate of real GDP growth in fiscal year 2008 is skewed to the downside, suggesting that members consider the downside risks to be
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