This thesis investigates the implication of financial globalization on economic reforms. First it reviews the literature and policy recommendations. It then analyses structural and stabilization measures being undertaken in Tanzania, paying attention to underlying policy framework. The results suggest that, the second best approach generated an impressive performance on macroeconomic and microeconomic fronts

Chapter 4 investigates the effectiveness of restrictions on capital flows, by applying Static Empirical Tools and Discrete, Linear Filters and Smoothers. Both approaches offer insights that controls didn't insulate domestic financial markets from their international counterparts

Chapter 5 focuses on "Structural VAR" to examine extent global capital markets influenced domestic monetary autonomy. Analyses of Innovations Accounting show that the exerted a notable bearing

Overall, the insights suggest that current economic performance can serve as a crucial "Buffer" towards a cautious path of decontrolling capital flows in order to sustain those gains in the medium and long-terms perspectives