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What is a Leading Indicator?

If you read the Stats Canada Leading Indicators post you’ll learn what that means, and you’ll have learned something new today, which is always a good thing.

I think you can interpret this data as saying that Canada’s economy is sailing along nicely and expanding nicely too.

The “money supply” is expanding, but what does that one mean, I wonder? I always thought that if you keep adding more money to the economy you are in danger of creating inflation, unless of course the money is actually imports of external money, creating new revenues in Canada, in which case that is good (I think). Think I had better go read up on that one.

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