One example is the pharmaceuticals industry, where the development of new products would probably not be possible at the same rate if new medicines were not protected by patent laws. Incomplete competition is thus important for ensuring that product development takes place within research-intensive operations. There may even be special circumstances that make production most effective under limited competition. This applies in particular to various types of infrastructure, for instance the trunk network for electricity and water, which are what is known as natural monopolies, where it is more effective to society to only have one producer. These assertions are important to monetary policy. The Riksbank's target is expressed in terms of the rate of change in consumer prices, not in terms of maintaining a particular price level. It is important to distinguish between the effects on the price level and the change in the price level. If competition is incomplete and leads to a low level of cost consciousness or high profit margins, it may contribute to high price levels, but will not necessarily affect the rate of change in prices. It is conceivable that a country could have a high price level to start with, but a low expected inflation rate. An example of this is that several countries with high price levels, such as Sweden, Switzerland and Japan, have been among the countries with the lowest inflation rates in recent years.
10  Government Bill 01/02:167, "Changes in the Competition Act for more efficient combating of cartels, etc.". BIS Review 25/2002  5  registered in a special product register containing information on the exact contents also hampers import competition as most other countries do not have such registers. The fact that the Swedish market is small means that it is not economically viable for foreign manufacturers to make the adaptation required by Swedish rules or legislation. The existence of recycling systems for cans and bottles also makes import competition more difficult in the soft drinks market (soft drinks are approximately 40 per cent more expensive in Sweden than the rest of the EU). The fact that requirements motivated by concern for the environment could impede competition does not, of course, mean that they should be abolished. On the other hand, this is a good argument for coordinating the various regulatory systems in Europe. The bank sector  As I am today speaking to people who work in the bank sector, I thought I would take the opportunity to say a few words on competitive conditions in this sector. The bank sector was characterised by extensive regulations right up until the mid-1980s, which acted as an impediment to dynamic development in this sector. Few new operators could enter and competitive pressure was fairly low. However, the deregulation that has occurred since then has radically changed this picture.