Financial sector liberalization can spur economic growth and development. But reforms to liberalize the financial sector also entail risks if they are not appropriately designed and implemented. One of the central policy andoperational questions for countries reforming their financial systems is how to sequence the reforms so as to minimize the benefits of liberalizatin and contain its risks. This book is concerned with the analytical and operational aspects of sequencing financial sector reforms. The IMF has for a number of years provided assistance to its members on their financial sector policies and operations. Issues related to the appropriate sequencing of financial sector reform have been a central concern in the design of the IMF's technical assistance programs. In seeking to reach a better understanding of the factors that should be taken into account in the design of financial sector reform programs, the IMF have engaged in an ongoing research effort drawing on the practical experiences of its members. This book brings together a number of these studies.