-5as measured by the rate of change in prices over the past three months, has also been close to the bottom of the G7. It’s also important to note that services price inflation in Canada has levelled off in recent months, while it has continued to rise in some other countries. These rankings could move around a little in the coming months, of course.
To provide the greatest incentive for investment in the context of the IT revolution, business must operate in an environment that will permit them to transform themselves in ways that allow technologyintensive investment to have the highest possible effect on productivity growth. Similarly, labor markets must be flexible enough to allow for the prompt re-allocation of resources in response to changes in demand.