I Introduction

Tomás Baliño, Charles Enoch, and William Alexander
Published Date:
July 1995
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Part II provides additional details on selected countries’ experiences with the introduction of indirect instruments. It consists of seven case studies (Chile, Egypt, Ghana, Indonesia, Mexico, New Zealand, and Poland), which are part of the country sample discussed in Part I, These seven countries were chosen because, with their wide range of experiences, they illustrate particular aspects of the process of adopting indirect instruments, including, in particular, the frequent need for accompanying actions and issues of the sequencing and pace of reform.

The results of these studies contribute importantly to the conclusions presented in Section V of Part I, and there is little, if any, need to reiterate those conclusions. But it is worth noting that, although each case provides its own lessons, they all serve to illustrate the mutually reinforcing nature of concomitant reforms that need to be undertaken in various areas. These include the insulation of monetary policy from the pressure of financing the fiscal deficit, the strengthening and integration of money markets, the restructuring of the banking system and the encouragement of bank competition, the adaptation of the regulatory and supervisory framework to market conditions, and the enhancement of the technical capacity of the central bank.

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