You can get inflation in two ways.<p>One way: people and firms are expending more money that the economy can digest. If a government wanted to compensate this, could raise taxes or, ironically, retiring money from the system emitting debt.<p>The other way: the money that people is expending is the same but the economy, for some reason, shrink. That would be a supply shock. That is what happened in the 70&#x27;s with the oil cartel.