I will finish with a few words on how monetary policy can contribute to rising productivity and rising standards of living. The connection between the standard of living and productivity A country’s standard of living and its productivity are not the same thing, although over the long run they are closely linked.
This distinction has not always been made clear in some of the commentary I have seen. When we speak of a society’s standard of living, we are typically referring to the individual well-being of its citizens.