Central banks underreacting to economic indicators, causing unnecessary volatility.
The article discusses how central banks can set interest rates to keep the economy stable. If the central bank can accurately see how the economy is doing, it should react strongly to any problems. But if it can't see perfectly, it should be more cautious. When using estimates of the economy, the central bank should still react strongly to problems. In reality, central banks seem to be reacting less than they should, which might be causing some issues in the economy.