Global developments are expected to have an increasing role in determining the conduct of monetary and exchange rate policies in our countries. In an environment of global convergence, retaining independence of monetary policy may become increasingly difficult, calling for hard choices in terms of goals and instruments.
V.  Financial integration in Asia - some issues  In an era of increasing globalisation, discussion on monetary policy and exchange rate frameworks cannot be done in isolation. It is, therefore, pertinent to place the Indian experience in the context of Asian economic co-operation.