This applies to both the short-term horizon – decisions on key interest rates have been highly foreseeable over short time horizons, and to the long-term horizon – the monetary policy framework, comprising monetary policy’s ultimate goal and its strategy, is well understood by most market participants.
2  BIS central bankers’ speeches  In any case, there is general agreement that independent fiscal councils can play an important role in overcoming the commitment problems which often prevent governments from pursuing sound fiscal policies in a time-consistent manner.8 Importantly, this argument holds true both when the commitment problems arise from policy rules and when they result from discretionary decisions.