Fan Chart Implementation

fanchart: Fan Charts Implementation

Fan charts Python implementation.

The term fan chart was coined by the Bank of England, which has been using these charts to illustrate its forecasts for inflation since 1996.

The BoE introduced the fan charts aiming to communicate a more accurate representation of their forecast for medium term inflation. In particular, the charts have two key objectives:

• To convey the uncertainty in their forecasts. This is, to focus attention on the forecast distribution, rather than only on small changes to the central projection.
• To promote discussion of the risks to the economic outlook, and thus contribute to a wider debate about economic policy. Fan charts help to make it clear that monetary policy is about making decisions instead of knowing the exact rate of inflation in two years time.

For more details on the history of fan charts visit Fan Charts

This library provides two main functions

Function Parameters
fan _single loc, sigma, gamma, probs, kind, color
fan pars, probs, historic, color
• The fan function illustrates the distribution of all the forecasts available; and it has the option to display the historical values for reference.

• The fan_single function illustrates the pdf/cdf of one forecast distribution

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