It is unable to influence the output of the economy or the level of employment in the long run. Furthermore, no correlation has been established between the level of unemployment and inflation when considering a larger  BIS Review 98/2008  1  timeframe.
On the contrary, international experience has underpinned that low and stable inflation can, through efficient allocation of resources, contribute to economic growth and higher levels of employment. Price stability, therefore, has important welfare-related benefits. Although it is possible that the economy is temporarily stimulated via the instrument of socalled surprise inflation, this will soon lead to higher inflation.