That is why American economist Larry Summers came to the conclusion that “[…] issues of dynamic consistency and commitment are crucial to the design of appropriate monetary policies. […] Institutions should be drafted to solve time-inconsistency problems.” [4] Against this backdrop, legislators in many countries have passed on the task of ensuring price stability to central banks.
At the same time, they granted them independence in order to protect them from political pressure and thus create the preconditions for their credibility.