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Market Consistency and WMC [25]

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Bullet points include: More clearly splits up the task between: Specifying the economic dynamics we think apply to the situation, e.g. correlations between different investment categories. Calibrating the model to market observables (or other externally sourced requirements we want impose on the model). Is akin to a Bayesian approach with the prior, i.e. (a), being modified by observations, i.e. (b), to deliver a Bayesian posterior. Conceptually like (and shares some of the mathematics of) some machine learning techniques, which can also be formulated in Bayesian manner

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