Inflation is a monetary phenomenon. Since the Central Bank controls the money su... | Hacker News

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		SSJPython on Dec 30, 2022 \| parent \| context \| favorite \| on: Inequality, interest rates, aging, and the role of... Inflation is a monetary phenomenon. Since the Central Bank controls the money supply, then by definition the Central Bank controls inflation.

WalterBright on Dec 30, 2022 | [–]

I meant they control the interest rates, which do not control inflation. Inflation comes about from the creation of money, which the central bank does to fund the government deficits.

imtringued on Dec 30, 2022 | [–]

The central bank can limit money creation but can't force consumers, businesses or the treasury to borrow or spend money.

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