Hanselmann describes what makes a city a major financial center. After citing London and New York, he focuses on Switzerland, identifying factors that affect a city's role in international banking. Necessary prerequisites Hanselmann lists are stability in the political, economic and social spectrum; liberal foreign exchange legislation; adherence to the principles of constitutional government; an efficient and well-developed banking apparatus that can rely on an functioning capital market; ability to invest in other countries; good communications; and close links with the global economy. He concludes by citing the shortcomings of floating exchange rates and recommending a system of stable but adjustable rates.