Recent developments in the international financial system and implications fo central banking

Abstract

The objective of this paper is to review the recent developments in the institutional financial scene and assess their impact on the effectiveness of central banks' effort to meet their primary mandate. For ease of exposition, the rest of the paper has been divided into four sections. In section two, the author took a cursory view of recent developments in the international financial system, while section three identifies some of the challenges for central banking activities. In section four, we outline policy implications and response to those developments. The paper is concluded in the fifth and final section.