If a central bank followed a rule for monetary policy, the time-inconsistency problem would still exist.

Name: If a central bank followed a rule for monetary policy, the time-inconsistency problem would still exist.
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Following a rule for monetary policy helps to mitigate the time-inconsistency problem by committing the central bank to a predetermined course of action, reducing the temptation to deviate from long-term policy goals for short-term gains.

If a Central Bank Followed a Rule for Monetary Policy