The macroeconomic implications of faster productivity growth A step-up in the growth rate of technological change certainly would have important implications for economic activity and inflation. As I indicated above, the main reason policymakers and economists are interested in the growth rate of productivity is that understanding that rate gives a clear understanding of the economy’s potential to supply goods and services.
As the WDR 2013 states, it is for the private sector to create economically and socially sustainable jobs, and for the government to provide a stable macroeconomic environment, an investment friendly business climate, a solid rule of law and a balanced labor market regulation.