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The integration of the world´s financial markets is increasing the pressure of external factors in the determination of domestic monetary policies and interest rates. Though the approaches of Major central banks towards the conduct of monetary policy differ in detail, there is broad agreement on fundamentals :a) Pursuit of price stability b) Stability of financial markets. For this reason, real long-term interest rates are likely to converge on an international norm, the level of which will be determined by a complex interaction of both monetary and real factors, (New theory) and in particular by the pace of technological advance.

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Dr.Naila Iqbal Khan has done PhD in Management (Finance)and MBA(With Finance specialization).She is working as an Assistant professor in Maulana Azad National Institute of Technology,Bhopal.She is an active researcher and have published many International research papers.

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