[lkrubner]

Imagine a country that has no international trade of any kind. If this country has inflation, the inflation has to be because of an excess of dollars over what can, in the short term, be supplied. (Over the long-term the stimulus of spending should lead to an increase in supply, which is why every nation prefer inflation to be mildly positive rather than mildly negative.)

But imagine a country that imports 25% of GDP and exports 25% of GDP, so that trade makes up 50% of the GDP. Now it can have an increase in inflation without a change in its monetary policy. For instance, if it buys a critical supply from a country, and that other country has an appreciating currency, then suddenly the imports will be more expensive. This is with no change to domestic monetary policy.