Unfortunately, the first tool used to achieve a higher standard of living is not very strong, and here are some factors that influence it. Discont rate is the rate for which commercial banks are borrowing the money from the Central bank. If the discont rate is too high commercial banks can not (from the low of demand and supply) borrow the money and then later on, lend them to people. That means if people need money to increase their standard of living, it is not very beneficial to borrow money from banks because of too high interest rate that banks offer. This state means that the money are "frozen". But there is an opposite state when the discont rate is relatively low and in this case, commercial banks can borrow money from the Central bank (which is profitable for them) and later, offer them to people. Drawn from this, people could have more disponsible money that would lead them to buy more products and services what in the final result, increase the level of living of Slovaks. .
The second monetary tool that can be implemented to increase the standard of living is to use the amount of money in the circle (the whole economic circle). The central bank has the priority to increase or decrease the amount of money in the state. This priority may let the bank to print extra money and put them into the circle (to people in way of increasing wages, to companies in way of subsidies). That would increase the living standards. Though, a possible objection is clear. Higher amount of money, not based on good pillars, can cause inflation and the effect of it is that the real value of the money will decrease. That is why it is important to put appropriate amount of money to the circle. For example, Argentina's government wanted to decrease the debt of the country and they printed too much money. In final result, the whole system broke down because an extreme inflation. .
Inflation brings along many negative effects.
