Fortunately, theory and evidence suggest, as I noted earlier, that the objectives of full employment and price stability are consistent in the long run. Short-run conflicts BIS Review 23/1998  -4between the targets arise in one of two circumstances. A conflict arises if we begin with inflation above our objective.
Unfortunately, monetary policy can reduce inflation only by temporarily imposing some slack in the economy. In this case, lowering inflation would mean departing for a while from full employment. Once inflation had fallen to its target level, the economy could return to full employment and enjoy the consistency of the two objectives.