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Why does economic growth often increase inflation?

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So There is no relation between economic growth → inflation. There is a relationship between inflation →perceived economic growth, but not real economic growth. You could argue that the lower than market value interest rates that accompany inflation allow increased borrowing, which increases GDP. read more

If you want to measure economic growth, measure it adjusted for inflation. If anything economic growth is deflationary in nature, but counteracted by inflationary monetary policy. So There is no relation between economic growth → inflation. There is a relationship between inflation →perceived economic growth, but not real economic growth. read more

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