Thank you.
Well, no, what matters is the growth of demand relative to the growth of supply, and the balance between those in the economy, ultimately, for their impact on inflation.
If we have a lower speed limit in the economy, as we do now, a speed limit that towards the end of our projection horizon is 2% rather than 3%, that means we need to manage monetary policy--given all the other factors that are influencing demand--such that, as growth approaches that level, as the economy approaches that level of potential, the economy will grow consistent with that growth of potential. That will maintain inflation at the level desired and delegated to us by the Government of Canada.
I would say, though, that yes, inflation is a bad thing. What particularly is a bad thing with inflation is unpredictable inflation, volatile inflation. We want low, stable, predictable inflation because business people can't make decisions when they have volatile inflation; the poor are hurt far more than the rich because they can't hedge themselves against inflation; and people have to spend time thinking about inflation, and where it might be, instead of focusing on the things that are truly important to them.
It's far better that we do our job properly and achieve that low, stable, predictable level of inflation so that Canadians can focus on what's important for them.