focuses on achieving price stability at home. this does not mean, however, that individual monetary policies should function in isolation. on the contrary, the ongoing financial turmoil has shown the value of a timely and open exchange of information on an international level between central banks and regulators in the presence of increasing financial globalisation. thanks to the existing framework for cooperation, the ecb, in conjunction with other major central banks around the world, has been able recently – and without changing its monetary policy stance – to help to avoid a global liquidity squeeze by providing the euro area financial system with additional refinancing during this period of heightened risk aversion. however, cooperation does not mean coordination. each central bank has just one policy instrument, and this instrument can only achieve a single domestic objective, namely price stability. as a result, central banks would be well advised to react to foreign developments only if these become relevant for domestic price stability. international cooperation helps to exploit the synergies that exist in monetary policy - making with a view to establishing an environment of global monetary stability. references batini, n., b. jackson and s. nickell ( 2005 ), “ an open economy new keynesian phillips curve for the uk ”, journal of monetary economics, vol. 52, pp. 1061 - 1071. bernanke, b. s. ( 2007 ), “ globalisation and monetary policy ”, remarks at the fourth economic summit, stanford institute for economic policy research, stanford, california ( march ). borio, c. and a. filardo ( 2007 ), “ globalisation and inflation : new cross - country evidence on the global determinants of domestic inflation ”, bis working paper no 227 ( may ). ciccareli, m. and b. mojon ( 2005 ), “ global inflation ”, ecb working paper no 537. see, for example, woodford ( 2007 ). coogley, t. and a. sbordone ( 2008 ), “ trend inflation, indexation, and inflation persistence in the new keynesian phillips curve ”, american economic review, forthcoming. ecb ( 2008 ), “ globalisation, trade and the euro area macroeconomy ”, monthly bulletin ( january ). ehrmann, m., m. fratscher and r. rigobon ( 2005 ), “ stocks, bonds, money markets and exchange rates : measuring international financial transmission ”, n

zeti akhtar aziz : progress and advancement of islamic finance speech by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the islamic economy award 2014, dubai, 14 january 2015. * * * it is my very great honour to receive the lifetime achievement award for the global development of islamic finance conferred under the patronage of his highness sheikh mohammed bin rashid al maktoum. i am most humbled to receive this award. it has been my privilege to contribute to the international efforts to create the foundations for a sustainable and resilient islamic financial system in the global financial system. this recent decade has been highly challenging for the world of finance, yet the experience of confronting the challenges has been tremendously fulfilling. the overall progress and advancement of islamic finance has continued to be accompanied by growth, dynamism and stability. islamic finance brings immense benefits to the overall economy. it is a form of financial intermediation that is well anchored to the real economy. with its internationalisation, that began at the turn of the millennium, it now serves to enhance and strengthen the interlinkages between economies, facilitating international trade and cross border investment activities. this trend has marked the beginning of intensified collective efforts to enhance the islamic financial infrastructure to create a robust and resilient global islamic financial system. the focus has gradually shifted from strengthening intermediaries in the domestic islamic financial industry to fortifying the regulatory, supervisory, shariah and liquidity framework necessary for such a robust financial system. this has involved greater international cooperation and collaboration in this new environment. a further development has been the evolution of the domestic islamic financial markets into international markets. this has manifested itself in the form of foreign participation in raising funds and in investment activities in these markets, thus generating increased cross border financial flows. this has drawn participation from both emerging and the developed world in islamic and non - islamic countries. going forward, the islamic financial system is envisaged to have an increasing important role in connecting the world economies – through the strengthening of financial linkages, it will in turn facilitate increased international trade and investment activities. this internationalisation of islamic finance will require the intensification of international collective efforts to establish the international islamic financial architecture, and the development of mechanisms for more effective cross - border liquidity management. central to achieving this next thrust of development is to develop a high caliber and competent talent base to cultivate financial innovation. therein lies the investment needed