Market-Base Systems of Monetary Control in Developing Countries: Operating Procedures and Related Issues
in Occasional Papers from South East Asian Central Banks (SEACEN) Research and Training Centre
This paper reviews issues in the development of a market-based system of monetary control in the context of financial reform in developing countries. It discusses the appropriate sequencing of financial reform measures that would facilitate the transition toward a market-based system. The paper also assesses the effects of financial reform on the demand for money function and stresses the importance of developing up-to-date economic indicators for policy formulation and implementation in the situation of unstable money demand.
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