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Suppose in an election year, the economy is benefiting from low unemployment. At the same time, clear signs of Inflationary pressures were apparent. How might the central bank with a primary goal of price stability react? How might members of the incumbent political party who are up for re-election react? In this case, the appropriate monetary policy is to lighten monetary policy, increasing interest rates to curb the emerging inflationary pressures in pursuit of the long-run oal of price stability. In contrast, it is likely that the politicians due for re- election would be more concerned with the low unemployment in the economy and be in favor of a cut in interest rates. In the absence of influence over an independent central bank, they may push for immediate increases in government spending or roductions in taxes