apart from mentioned above, another institutional response to time consistency problem is central bank independce.
Rogoff(1985) showed by delegating a conservative central banker,the inflation bias economy experienced would be reduced.
another argument was proposed by Walsh(1995). in his model, inflation bias problem is solved by constructing a contract that imposes costs on central banker when inflation deviate from the optimal level. New Zealand adopted this approach: the head of central banker will be out of office once he missed out the targeted inflation rate to certain extend.( i am not sure about the details of their policy)
empirical evidence ( Alesina & Summers (1993)) confirmed that inflation fluctuation and degree of central bank independence is negtively related.