Because the best place to begin discussing this broad topic is with a definition of financial sector reform, I start by trying to provide one. Next, I discuss how the process of developing a more efficient monetary control regime is related to the various components of financial sector reform. Then I consider some of the macroeconomic consequences of financial sector reform as they affect the formulation and implementation of monetary policy. I conclude with a discussion of how financial sec-tor reform can be used in a stabilization program to support macroeconomic policies.
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