This chapter provides more in that in addition to a survey of historical developments in the financial sector it gives the reader a quite comprehensive survey of macroeconomic developments. Diverse public and private bodies can have legitimately diverse objectives in promoting structural reforms in the financial sector. Canadian experience indicates that a good place to start in modernizing financial markets, along the lines just noted, is with the development of a broader market in short-term government securities. Financial reforms designed to place greater reliance on market forces are essential to implement monetary policy more effectively. The valid argument for more measured progress is that due concern must be given to ensuring the stability of the financial system. The pace of reform must reflect the significant short-term costs that may be involved in implementing even the most worthy longer-run reforms.