Eijffinger, Sylvester; Schaling, Eric - Bank of England - 1995
people's preferences over inflation and output it has an incentive to renege from prearranged plans to gain a short run boost … to output. This incentive leads to higher than desired inflation. One solution to this credibility problem is to give … control of monetary policy to an independent central bank that is more averse to inflation than society. Central bank …