6  BIS Review 65/2001  demand to a level consistent with full employment. Hence, policymakers do not have to be concerned with full employment in the long run, leaving price stability as their unique long-run concern. But this view is misleading in a couple of respects. First, monetary policymakers should be concerned about two long-run properties of the economy.
One is price stability and the other is the variability of output around full employment. Policy has to be judged by its success in both dimensions. Second, policy is made in the short run, not the long run. The speed of return of output to its potential level is influenced by policy decisions and cannot be treated with indifference.