Specifically, standard economic models imply that, in the long run, monetary policymakers can reduce the volatility of inflation only by allowing greater volatility in output growth, and vice versa. In other words, if monetary policies are chosen optimally and the economic structure is held constant, there exists a long-run tradeoff between volatility in output and volatility in inflation.
This does not mean, however, that contingency or emergency measures to be activated under extraordinary conditions cannot remain in place. Finally, the use of using self-originated paper as central bank collateral should be considered as an anomaly under normal market conditions. How?