flexibility to react to its private information against society’s need to guard against the standard time inconsistency problem … policy discretion is decreasing in the severity of the time inconsistency problem. As this problem becomes sufficiently severe … private information against society’s need to prevent policymakers from succumbing to the standard time inconsistency problem …

' fiscal policy, and unionwide regulation of banks.When there is no time inconsistency problem, there is no free-rider problem …"We analyze the setting of monetary and nonmonetary policies in monetary unions. We show that in these unions a time … inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of nonmonetary policies, such as …