Productivity, terms of trade, and living standards There is no doubt that advances in productivity underpin improvements in our standard of living. However, in an open economy, real income depends not only on the volume of output, but on the trading value of that output, that is, on the terms of trade.
I have, therefore, chosen to elaborate on few such issues in my address today. These issues essentially revolve around “Disruption, Innovation and Competition” in the banking sector, which is the theme of the Conclave.