ABSTRACT
Practical need, new empirical evidence, and intellectual fashion have all contributed to a new interest in the role of the formal monetary sector and of monetary policy in developing countries. This poses particular problems for those which are least developed. Their interests and their problems were furthest removed from traditional analysis, so that both the problem (short-term stabilisation) and the recommended monetary instruments (broadly based and market-oriented banking systems and bond markets) are remote from their experience and remain under-researched in the context of their economies.
