With the sophistication of financial markets rendering the money, output and price relationship unstable, by the early 1980s, major central banks began to emphasise on the price channel, i.e., policy interest rate for monetary policy transmission. As a result, the role of money market became all the more important for signaling and transmission of monetary policy.
Let me turn to that, dwelling specifically on the need to foster competition and innovation, on creating an environment hospitable to those who do not belong to the club, on improving the structures we have to deal with distress, and on strengthening human capital in the financial system.