Introduction

Abstract

In the past 15 years perspectives on the functioning of markets in general, and the financial markets in particular have undergone unprecedented change. This has been a period of the greatest volatility in inflation and interest rates in history. Not coincidentally it has been a time of international debt crisis.¹ It has also been a time when the fall of communism has led to the bankruptcy of dirigiste schemes that ignore the efficiency aspects of government policy. Market processes are now universally recognized as the most effective way to allocate resources. In the wake of these changes have come enormous adjustments in both financial markets and public policy.