In the early postWorld War II decades, both U.K. and U.S. authorities sporadically attempted to influence long-term interest rates directly by transacting in longer-term Treasury securities. By 1997, however, monetary policy operations in longer-term securities markets had fallen into disuse.
The indication of the way forward is clear. As per the analysis, we need to improve on the depth and breadth of our financial market, increase our access to foreign exchange and bring our regulatory environment on par with international norms. However, the challenge is to get on that path and stay the course.