All other factors being equal, the bottom line is lower potential output. Tighter monetary policy will consequently be required to align demand and supply at a level consistent with the desired price dynamics. 1 Reis (2022).
______________________________________________________________________________________ 20221108 ICMB Public Lecture Pierre Wunsch – National Bank of Belgium Page 2 of 11  More generally, supply shocks with persistent effects could well require a stronger monetary policy response if they contribute to a de-anchoring of inflation expectations.