Financial liberalisation and monetary control reform in Mauritius

Abstract

Financial liberalisation has been prominent in the economic agenda of policymakers since the late 1980s as part of the overall strategy of economic liberalisation. A gradual and cautious approach has been adopted towards financial deregulation in the implementation of financial reforms and institutional changes in the economy. A major institutional change has been the reorientation of monetary policy implementation towards increasing reliance on market-based techniques. This paper analyses the effectiveness of this policy change.

Keywords : Financial liberalisation, financial repression, monetary control reform, direct control and market-based techniques.