Then I will consider the implications of the changes that are taking place for central banks’ task of preserving monetary and financial stability. Finally, I will try and draw one or two concrete lessons from our most recent experience. Basic trends in the international financial system It is no exaggeration to say that the international financial system is undergoing a process of unprecedented change.
Among the most significant driving forces are advances in communications and information technology. By dramatically lowering the cost of financial transactions and broadening the dissemination of financial information, these advances have expanded trading and investment opportunities and are exercising powerful effects on the scale and structure of financial intermediation.