To the extent that the system was favouring the use of the income trust structure in these cases, the incentives for innovation and investment were reduced, and the potential for future productivity growth was reduced. Finally, members of the Committee should realize that the different risk-return characteristics of income trusts may not enhance market completeness if they arise from differences in tax treatment.
But, where past 3  BIS Review 22/2000  price performance has not been particularly favourable, inflation targets can help to strengthen confidence in the central bank’s commitment to low inflation. From the early-1970s to the early-1990s, on average, Canada had a somewhat higher inflation rate than the United States.