fanchart 1.0.0

Fan Chart Implementation

Fan Charts

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. For more details on the history of these charts visit Fan Charts

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.

This library provides two main functions

Function	Parameters
fan _single	loc, sigma, gamma, probs, kind, color
fan	pars, probs, historic, color

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

• The fan function illustrates the distribution of all the forecasts available; and it has the option to display the historical values for reference.