5 At the same time, the separation has imposed transparency and frequent communications on the side of the monetary authority as a manifestation of democratic accountability. 3  See Cukierman, A. and A. Meltzer (1986), 'A Theory of Ambiguity, Credibility and Inflation under Discrection and Asymmetric information', Econometrica 54: 1099-128.
4  See Kydland, F. and E. Prescott (1977), 'Rules Rather Than Discretion: The Inconsistency of Optimal Plans', Journal of Political Economy 85, 473-90, and Barro, R. and D. Gordon (1983) ‘A positive theory of monetary policy in a natural rate model,’ Journal of Political Economy 91, 589-510.