The process of financial deregulation, and especially the dismantling of direct monetary controls, has been underway for some time now in many financially-developed economies, but little attention has been devoted to analysis of the issues involved in the academic literature. This book represents an attempt to remedy that deficiency providing, as it does, a detailed analysis of the programmes of financial deregulation pursued in the United Kingdom and Australia since 1970 and an assessment of the implications for monetary and prudential policy.