And we want our living standards to be improving over time. I’ll refer to the average rate of growth in output in the long run as the economy’s trend rate of growth.
Price stability refers to the stability of the overall price level, measured, for example, by the price index for overall output (the chain-weighted price index of GDP) or for consumer goods and services (the Consumer Price Index). We often satisfy ourselves with the norm of low and stable BIS Review 23/1998  -2inflation.