First, what would be the costs and benefits of an inflation target lower than 2 per cent? Second, what  1  Available at: http://www.bankofcanada.ca/en/fsr/index.html  BIS Review 121/2006  1  would be the costs and benefits of replacing the current inflation target with a longer-term price-level target?
In particular, disruptive types of innovation that create new markets and products and carve out new categories of customers are especially powerful, relative to incremental forms of innovation that just seek to improve the quality or lower the cost of existing financial products.9 It is possible that segments of the financial sector could be arriving at a tipping point in terms of the impact of disruptive innovation.