I meant Grow*
In: Economics
I would call inflation more of a side effect of growth rather than a precondition. No one that wants to encourage growth would recommend that everyone simply raise their prices.
What ends up happening is that the tools used to fight inflation — tightening credit, raising interest rates, etc — end up slowing the economy down. Central banks will do this! But they will only do so much of it. They will slow down an overheated economy to prevent high inflation, but they won’t grind the economy to a complete halt just to get zero inflation. The sweet spot is usually low but non-zero inflation.
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