The article discusses how monetary policy can affect inflation rates. When policymakers have the freedom to print more money, it can lead to higher inflation than expected. However, if people understand the policymakers' motives, they can adjust their expectations, preventing excessive inflation. By following set rules or building a good reputation, policymakers can improve economic outcomes. In a scenario where reputation matters, the inflation and monetary growth rates can resemble those under discretionary policies when the discount rate is high.