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Stimulating aggregate demand past output with monetary policy is one way inflation can happen, and central banks do have control over that. That can be consider
by kaashif 5y ago
Stimulating aggregate demand past output with monetary policy is one way inflation can happen, and central banks do have control over that. That can be considered a stealth tax by central banks.
But sometimes output actually does decrease and that isn't due to central banks.
The price of gas in Europe, for example, increased because there was a cold winter, a lack of wind, a recent issue with the supply due to Russia's attack on Ukraine. Not all increases in demand are due to central banks, and not all inflation is due to changes in demand.