Policy Papers No. 1 - Changing financial systems in small open economies

January 1996

Foreword

Since its inception the BIS has been a centre for discussions about almost all aspects of central bank policy. During the last few years, meetings at the BIS have come to involve a much wider range of central banks. This development has been part of a conscious policy of making the BIS more global in focus.

At the request of a number of central banks, we invited a small group of senior officials to come to Basle (28th to 29th September 1995) in order to discuss their experience in developing financial markets and in operating monetary and exchange rate policies in a more liberalised environment.

The central banks provided rich inputs for this meeting, both by preparing papers and by gathering the data for crosscountry comparisons. BIS staff produced an overview of the main policy issues. There followed two days of lively and wide ranging discussion which deepened our understanding of shared problems and potential solutions. As the participants felt that these issues are of broad interest, the BIS is pleased to publish both its own paper (which makes extensive use of the statistics provided by the central banks) and the contributions of those central banks who were prepared to publish theirs.

ANDREW CROCKETT
General Manager