Recent research has shown that central banks should moderate the responsiveness of their policy decisions to real activity when underlying data are known to be subject to measurement error. After all, a strong policy response to mismeasured data will induce unnecessary fluctuations in the economy.
In view of this, the weight given to the individual information variables should depend on how precisely those variables are measured. This is especially applicable to variables that are not directly observable, but which are relevant for policy formulation, such as the potential output growth and the equilibrium values of the real unemployment rate and the real interest rate.