The process of financial globalisation The financial markets of the world are progressively becoming more integrated in a process that has become known as “financial globalisation”. National stock and bond exchanges and money and foreign exchange markets are being opened up for international participation.
Monetary policy still faces considerable challenges as we seek to normalize policy. The task should be to return to a framework in which a market rate is our primary policy tool, to reduce the size of our balance sheet, and to restore our portfolio to all Treasuries.