Financial integration has also brought with it shocks common to several countries since the “confidence channel” transmits financial crises across countries swiftly. In a world of generalised uncertainty, monetary policy in several countries is faced with a progressive loss of discretion. For developing countries, in particular, considerations relating to maximising output and employment weigh equally upon monetary authorities as maintaining the price stability.
the extent of the central bank branch network and its role in the money supply, the storage facilities available in bank branches) as well as the size and geography of the country.