1. Infrastructure of emerging economies' financial markets

We have been studying the financial markets and systems of emerging economies, mainly in Asia, with an emphasis on foreign exchange, government bond, and corporate bond markets during fiscal 2000. This has included a focus on a non-internationalization of a currency, the enhancement of market monitoring, the development of a corporate bond market, and incorporates the views of the authorities and participants in various markets.

2. Structural reforms in the EU

In EMU countries, structural reforms in areas such as labor markets, government finances, and social security are vital to the stabilization of the new single currency, the euro. All member countries have made considerable efforts toward such reforms, the progress of which has influenced the value of the euro. Integration of financial and capital markets is one of the key aims of the introduction of the single currency, and member countries have struggled to harmonize their respective laws and regulations to achieve it. We have been investigating the influence of the euro on a wide range of areas within the European economy.

3. Electronic trading

Electronic trading has made much progress, particularly in Europe and U.S., as online securities companies and ECN have come to the forefront and reorganization of stock exchanges has accelerated. This progress has brought about enormous market changes, and investment banks and securities companies have hastened in construction of electronic trading systems, while there has also been pressure to reform settlement systems. We have investigated trends in electronic trading in Europe, US, and Asia, as well as the reform of settlement systems, both from a worldwide point of view.

4. Regional monetary cooperation

Since the outbreak of the 1997 Asian currency crisis, there has been a growing movement toward the strengthening of regional monetary cooperation in East Asia. Two workshops were held this year for developing the idea with participation of Asian think-tanks, academics and officials.