In the more recent period, with the enhanced international dimension of Islamic finance, it has become an increasing form of intermediation that has facilitated economic linkages between emerging economies. In addition, it has also drawn the participation by the more established financial centers to forge stronger financial linkages with the dynamic growth regions of Asia and the Middle East. Indeed, this would contribute towards more efficient mobilisation of funds across regions, reinforcing the significance of Islamic finance as an increasingly important channel for a globally more inclusive economic development. In the aftermath of the crisis, Islamic finance will continue to spur new connectivity among nations as its role and relevance gains more significance, thereby contributing to a more balanced global growth. Conclusion In conclusion, it is the very premise on which Islamic finance performs its intermediation function that strengthens its potential role and relevance in advancing the growth and development agenda towards preserving financial stability and towards strengthening economic and financial linkages between nations. By operating in accordance with the rules of Shariah, Islamic finance draws its strengths from its direct link to economic activity and its inherent requirement for prudent risk management and explicit disclosure and transparency thereby ensuring the viability of the activities in generating sufficient wealth to compensate  BIS Review 70/2010  3  for the risks involved. These inherent strengths will continue to be the catalysts driving its transition into a new era of growth and development in this post-crisis world.

The main basis for these examinations is the appendix to the Inflation Report that I mentioned earlier. One might think that it would be even better if more, and independent, agents took an active part in serious assessment. From time to time, assessments or assessment reports are commissioned. For instance, the National Institute of Economic Research 1 was given the task of producing background and facts prior to the Committee on Finance’s assessment in 2002. Last year the Committee on Finance decided to commission an independent, in-depth assessment of Swedish monetary policy during the period 19952005, that is, the ten-year period during which the inflation target has acted as official anchor for Swedish monetary policy. This assessment is being made by two international experts in this field, and it will, for instance, illustrate whether the inflation target is correctly designed to ensure price stability, to what degree the monetary policy conducted has led to attaining the inflation target during this period and the background and forms for the monetary policy decisions. This is something that I and my colleagues in the Executive Board welcome and I look forward to the analyses and debates this assessment will lead to. Of course, one can regard the general debate as an examination of our activities and as an indicator of how well we explain our monetary policy. However, it is rare that particularly thorough comparisons of, for instance, the forecasts published by the Riksbank and others are made in the debate. The debate thus cannot replace systematic assessments.