Sentences with phrase «assumes tight relationships»

The Fed has taken many actions over the past 30 years, using a model that assumes tight relationships between short interest rates and inflation / labor unemployment.

Not exact matches

That uncertainty can be broken down into 2 pieces: statements based on model weighting ignore uncertainty about how tight (and real) the constraint actually is, while statements based on an assumed functional relationship not only neglect uncertainty related to constraint validity, but also ignore uncertainty regarding what the correct functional relationship should actually be.