Monetary Control Procedures and Financial Reform

Download or read book Monetary Control Procedures and Financial Reform written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-06-02 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many countries have initiated reforms in their monetary control procedures by relaxing direct controls and increasing the role of market processes. The changed approach is often inevitable when countries reform their financial systems in support of growth and adjustment. This is because reform of those procedures increases the scope of monetary policy for stabilization purposes and allows for more flexible arrangements for setting interest rates and allocating credit that are necessary elements in improving resource mobilization and the efficiency of investment. This paper discusses the approaches to reforming monetary instruments, the issues in implementation, and experiences in developing countries.