The financial system provides a framework for carrying out economic transactions and transmission mechanisms for the BSP’s effective conduct of monetary policy. We recognize that monetary policy must evolve in the context of a more sophisticated and complex financial system.
By the early 1980s, the long-prevalent notion that the centrally planned economy of the Soviet Union was catching up with the West had begun to be discredited, though it was not fully discarded until the collapse of the Berlin Wall in 1989 exposed the economic ruin behind the Iron Curtain.