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This paper gives the current thinking on the issues of financial liberalization and the acceleration of growth for which it is accepted that finance is critical, so that the issue is an important one. It suggests that policy-makers and advisors need to be fully cognizant of what is involved if they are to avoid a potentially damaging financial crisis. It shows that they must appreciate the limitations of the free market principle in the area of finance and understand the important role that macroeconomic instability and banking supervision and regulation play in the success of financial liberalization. (Prepared for presentation at the Regional Programme of Monetary Studies Conference, Jamaica, November 23-26, 1994)