> The correlation between inflation and lower growth is not as strong as one would think. Of course not. Inflation is a symptom and not a cause. If lower inf

> The correlation between inflation and lower growth is not as strong as one would think. Of course not. Inflation is a symptom and not a cause. If lower inflation or even deflation lead to growth, then a penny should still have value, and a dollar should be a good amount of money (we've abolished 1 cent coins altogether, and a dollar buys very little). But our economy has grown a lot since the 1950's, and inflation has happened. Inflation is caused by many things. In Zimbabwe's case, they tried to print money to finance various things. With no underlying value, the money quickly devalued. In the case of Canada, the US and other western nations, we've enjoyed economic growth, but because demand for goods and services has generally outpaced supply, prices have gone up. Right now where I live, an 'average' house costs $450K. Anyhow, thanks for the link, but I've spent too much time looking at Solow equations for my liking (currently doing a degree in economics).