The benefits of long-run price stability lie in the future. The costs that may be associated with attaining or preserving price stability are borne up front. And faced with the immediate imperatives of political life, our democratic representatives face pressures to defer the immediate investment in future price stability in favour of the immediate benefits of lower interest rates and/or faster growth.
3  BIS Review 100/2000  An independent central bank specifically charged with maintaining price stability, effectively empowered and resourced to do the job, and held accountable against the achievement of that objective, is a fairly logical response to dealing with that inherent inflationary bias by institutionalising a contrary bias in favour of long-run price stability.