As Keynes wrote “Life and history are made up of short runs” which implies that the long run is just a sum of many different short terms. Monetary policy cannot be reduced to a short-term gimmick since our economies do not spontaneously return quickly to zero output gaps and full employment.
20  See Forbes, K., I. Hjortsoe and T. Nenova, (2015), “The shocks matter: improving our estimates of exchange rate pass-through”, Bank of England Discussion Paper No 43. 21  See Cecchetti, S. and K. L. Schoenholtz (2016), “How Low Can They Go?”. 22  See Blanchard, O. and L. Summers (1986), “Hysteresis and the European Unemployment Problem”, NBER Macroeconomics Annual, Vol.