The study looked at how central banks should set interest rates in response to changes in the economy. If the central bank can accurately see how the economy is doing, it should react strongly to keep things stable. But if it can't see perfectly, it should be more cautious to avoid making things worse. When using estimates of the economy, the central bank should still react strongly to keep things stable. In reality, central banks seem to be not reacting enough to their estimates, which could lead to more ups and downs in the economy.