Todd Whitcombe seems to have got confused about economic growth and inflation - inflation doesn't cause growth.
Most commonly we use GDP (gross domestic product - a measure of all the goods and services produced in Canada in year) to measure growth. If we make more stuff, GDP increases and the economy has grown. Inflation is removed from the calculations of GDP for the very reason that price increases would make our GDP look bigger even if we hadn't produced any more goods and services.
To use Todd's example, if the price of bread increased because the farmer was charging more for wheat, that wouldn't be growth. It would only be growth if we were making more bread.
Brian Barber
Prince George
