Here, a decisive monetary policy stimulus helps to stabilise output and inflation at the same time – there is no trade-off between the two. But for other types of shocks, such as supply shocks, a trade-off may occur between stabilising inflation and stabilising growth, requiring a different monetary policy response.
For instance, a positive oil supply shock exerts downward pressures on prices but goes along with an expansion of real activity. Lower energy prices boost real disposable incomes. The  BIS central bankers’ speeches  3  downward drift of inflation away from the focal point of just below 2% would warrant additional accommodation.