Here, I would just note that the most important modern advance is to ensure the decisionmaking takes place within a framework of well-defined objectives and clear accountability. This is indeed one of the strengths of the inflation targeting regimes that have been adopted in so many countries during the past decade.
They recognise the need for a decision-maker, so that interest rates can be adjusted in response to unfolding events, but they also place the process within a framework of clear objectives and accountability. Bibliography Copland, Douglas B. (ed) (1960), "Giblin: The Scholar and the Man: Papers in Memory of Lyndhurst Falkiner Giblin, D.S.O., M.C. ", edited by Douglas Copland, Melbourne, Cheshire. Goodhart, C.A.E.