These two papers relate to some particularly interesting quirks of the finance industry. They raise issues which are worthy of further contemplation.

The first paper brings my mind back to an article that I read about three decades ago in The Bulletin which related to the accuracy of forecasts made by bank and industry economists. At the beginning of each year, economists were asked to forecast a range for each of several economic variables within which they expected the value for each variable to be at the end of the year. Variables for which they were...