Finally, especially in countries where debt markets are not well developed, central banks might be called upon to finance budget deficits by printing money, again interfering with maintaining price stability. The Federal Reserve, for example, was asked to directly underwrite government debt during World War I, but a statutory prohibition on directly purchasing government debt was later added to the Federal Reserve Act.
Some have worried that even an independent central bank could succumb to the temptation to stimulate the economy today at the expense of higher inflation in the future. This is referred to as the problem of time inconsistency.