ABSTRACT
This chapter elaborates on the analytical framework for fi nancial policy choices, which is drawn from two theoretical propositions. The fi rst proposition focuses on the preferences of industrialists and private fi nanciers as an important explanatory variable. It posits that industrial organisation and fi nance-industry ties structure the ways in which these preferences are aggregated and articulated. The second theoretical proposition argues that central bank-government relations, or the degree of central bank independence, affect not only which state agencies – central banks or line ministries – assert their interests in the reform process, but also how private-sector preferences are projected into the public policy arena.
