[8] This is one of the central thesis of their most recent book: see Daron Acemoglu and James A. Robinson (2019), The Narrow Corridor, Penguin. [9] Daron Acemoglu and James A. Robinson (2019), The Narrow Corridor, Penguin. Pages 464-466 [10] Finn E. Kydland, Edward C. Prescott (1977), “Rules Rather than Discretion: The Inconsistency of Optimal Plans”, Journal of Political Economy, 85(3): 473-492.
[11] Robert J. Barro and David B. Gordon (1983a), “Rules, discretion and reputation in a model of monetary policy”, Journal of Monetary Economics, 12(1): 101-121; and (1983b), “A Positive Theory of Monetary Policy in a Natural Rate Model”, Journal of Political Economy, 91(4): 589-610.