The idea is that, as described above, there is a short-run trade-off between inflation and unemployment – at lower levels of unemployment, wage and price pressures rise and vice versa at higher levels of unemployment. But, if unemployment remains too low for too long, inflation expectations will rise, which will make it that much harder for the monetary authorities to bring inflation back down.
The Bank's enhancement of monetary easing can be recognized in the context of international cooperation. Since this March, the central bank in each country and region has been exchanging information frequently at various levels, and it can be said that the strengthening of the U.S. dollar funds-supplying operations is the outcome of such cooperation.