In addition, a strict monetary rule also protects the central bank against political pressure. But such a rule also prevents the central bank from making mistakes which inevitably result from the attempt to seek constantly to examine all available information for its relevance and to make it usable for discretionary decisions.
Other approaches to overcoming the problem of dynamic inconsistency or insufficient credibility are targeted at the policy makers themselves. According to Rogoff (1985), for example, monetary policy should be entrusted to conservative central bankers. Contractual solutions à la Walsh (1995), with a clear-cut target and strict penalties in the event of its nonachievement, likewise belong in this category.