1. The use of market instruments for monetary policy / Gerard Caprio, Jr. and Patrick Honohan -- Pt. 1. Nuts and bolts: practical issues on moving to indirect implementation of monetary policy -- 2. Central Bank liquidity, management and the money market -- 3. The use of monetary policy instruments by developing countries / R. Barry Johnston -- 4. Building financial institutions for a market-based monetary policy / Steven Grenville -- Pte. 2. Monetary targeting and control -- 5. Monetary targeting: lessons form the U.S experience / David Lindsey -- 6. Monetary targets: european experience / Charles Goodhart -- Pte. 3. Budget deficits and monetary policy -- 7. Impact of government deficits on monetary policy: the case of Italy -- 8. Impact of government deficits on monetary policy: the case of Chile / Juan Andres Fontaine -- 9. Monetary management with high inflation: the brazilian experience / Carlos Alberto Queiroz -- Pt. 4. The interaction of exchange rate and monetary policy -- 10. Exchange rate policy / Charles Freedman -- 11. Interation of exchange rate policy and monetary policy: the case of Malaysia / Lin See Yan.

Rapid structural change and widespread adoption of financial sector reforms in developing countries have placed pressure on traditional instruments of monetary control. It is widely accepted that, if the necessary macroeconomic control can be maintained, a move to an indirect, market-oriented system of monetary policy instruments will help the financial sector perform in a sounder and more efficient manner, resulting in the maximum contribution to economic development. With these developments in mind, the Financial Policy and Systems Division of the World Bank organized a seminar in May, 1990, which brought together experts from industrial and middle income countries, together with some of the Bank ' s own financial sector specialists and those of the International Monetary Fund, to discuss the lessons of recent experience with indirect methods of monetary control. This volume reports the edited proceedings of the seminar and will be of value to policy makers and students of developing countries.