The Central Bank Commitment Story is based upon an incentive problem due to

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The Central Bank Commitment Story is based upon an incentive problem caused by time inconsistency. This refers to the fact that policymakers may not follow through on their initially stated policy goals once they are in office, leading to suboptimal economic outcomes. As a result, central banks use commitment devices such as setting inflation targets to increase their credibility and minimize the impact of time inconsistency.

The Central Bank Commitment Story Is Based Upon an Incentive