As a consequence, the only way to resolve this dilemma is for monetary policymakers to make a credible commitment to a stability strategy – and thus to credibly forgo the option of using expansionary monetary policy surprises to give the economy a short-lived shot in the arm.
Tying central banks to a very strict set of rules, that is, to an automatic system for regulating the money supply, was something that Milton Friedman had in mind.