The independence of monetary policy from the immediate influence of parliament and government seems to be rather the exception that proves the rule than a suitable recipe for reining in other fields of economic policy, in particular fiscal policy. In my view, however, the financial markets are fundamentally better at exerting discipline on policy makers.
Investors are less subject to the problems of moral hazard and time inconsistency that we usually run into when relying on policymakers to ensure fiscal soundness. This confidence in financial markets may come as a surprise, given their recent track record in identifying risks early on.