To achieve it, the central bank must always stand ready – and be perceived as standing ready – to take all necessary actions to deliver on its mandate.
The credibility of this commitment requires the central bank to operate under the appropriate institutional set-up, most importantly political independence, and that it develops a track record which signals its willingness and capacity to deliver price stability. 2. Independence from political influence  The importance of this principle has been established in a large body of theoretical and empirical literature.