The importance of non-tariff barriers in restricting free trade has risen during recent years. Due to their selectivity non-tariff barriers may distort trade even more significantly than tariffs. Developing countries and economies in transition are often most negatively affected.

The volatility of financial markets has attracted a lot of attention in recent years. However, while particular episodes, such as the bond market turbulence in 1994 and considerable exchange rate movements in 1995, may give the impression that markets have become more volatile, there appears to...