  We interpret the rapid correlated UV/optical/ X-ray variability of XTE
J1118+480 as a signature of the coupling between the X-ray corona and a jet
emitting synchrotron radiation in the optical band. We propose a scenario in
which the jet and the X-ray corona are fed by the same energy reservoir where
large amounts of accretion power are stored before being channelled into either
the jet or the high energy radiation. This time dependent model reproduces the
main features of the rapid multi-wavelength variability of XTE J1118+480.
Assuming that the energy is stored in the form of magnetic field, we find that
the required values of the model parameters are compatible with both a patchy
corona atop a cold accretion disc and a hot thick inner disc geometry. The
range of variability timescales for the X-ray emitting plasma are consistent
with the dynamical times of an accretion flow between 10 and 100 Schwarzschild
radii. On the other hand, the derived range of timescales associated with the
dissipation in the jet extends to timescales more than 10 times larger,
confirming the suggestion that the generation of a powerful outflow requires
large scale coherent poloidal field structures. A strong requirement of the
model is that the total jet power should be at least a few times larger than
the observed X-ray luminosity. This would be consistent with the overall low
radiative efficiency of the source. We present independent arguments showing
that the jet probably dominates the energetic output of all accreting black
holes in the low-hard state.
