operates under a governmental mandate declaring that the long - term objective of monetary policy is to maintain the domestic and international value of its currency. the european central bank ( ecb ) operates its regime under authority delegated by the treaty establishing the european community, with the primary goal of price stability established by the treaty. lessons are more diffuse from the last wave of countries to adopt inflation targeting. brazil's adoption of inflation targeting in 1999 was preceded by a presidential decree. hungary and poland adopted inflation targeting following parliamentary acts stipulating that price stability was the main objective for the central bank. but in two cases, mexico and the czech republic, the central bank moved to inflation targeting on its own. in the czech republic, subsequent legislation enshrined price stability as the main objective of the central bank, but not in mexico. although these regimes differ from one another, there is at least some governmental involvement in all but the mexican case. the level of involvement ranges from new zealand's explicit governmental guidance to other, much more flexible arrangements that give the central bank fairly wide latitude in establishing target ranges, choosing indexes, and choosing time periods over which to meet the price stability objectives. there may also be a correlation between governmental involvement and the strictness of the inflation - targeting regime. involvement has been the greatest in the strictest regime, new zealand, and is noticeably less in the more flexible regimes. the united states the main country that has not adopted inflation targeting is the united states. although academic economists and many others have for years been urging the federal reserve to adopt inflation targeting, legislators have shown very little interest in the issue. congressman jim saxton of new jersey, chairman of the joint economic committee, has introduced an inflation - targeting bill several times, but the bill currently has no cosponsors and has not been reviewed recently in committee hearings. previous inflation - targeting bills have fared no better. this lack of congressional momentum could be interpreted as lack of congressional support for inflation targeting, or it could merely reflect a more neutral absence of strong opinions. given the absence of firmer congressional guidance, the federal reserve has continued to operate under the full employment and balanced growth act of 1978. this act directs the fed to " promote effectively the goals of maximum employment, stable prices, and moderate long - term interest rates. " should these goals be in conflict, it is up to the fed to resolve the problem. to say the least, the u. s. approach is a rather

was greater reliance on the banking system for financing. with the advent of new financing instruments and supporting infrastructure, trading activity in the secondary market have also increased by more than three fold, with the trading volume now amounting to rm516 billion. a key development of the malaysian financial market is the enormous growth of the sukuk market. as a pioneer in the global sukuk market, malaysia has remained firmly established as one of the largest issuers of sukuk, with 62 percent of the world's outstanding sukuk having originated in malaysia. malaysia's lead is also reflected in the innovative and competitive structures that have been pioneered such as the exchangeable sukuk musharakah and sukuks based on istisna'and ijarah. all these augurs well for malaysia to evolve as an international islamic financial hub and as a centre of sukuk origination. riding through the global financial market uncertainties the enhanced resilience of our financial system during this challenging international financial environment can be attributed to the comprehensive reform measures undertaken over this decade which has contributed to reduce the impact of the global financial crisis on our financial system and our economy. the domestic financial markets have remained orderly despite experiencing greater volatility, higher outflows and lower trading volume at the height of the crisis. the financial sector has also remained solid and has continued its intermediation function without disruption throughout this period. a number of pre - emptive measures has also been initiated to ensure continued access to the bond market for funding. this includes the establishment of danajamin nasional berhad, a national financial guarantee insurer to provide credit enhancement for viable corporations to raise financing from the bond market. this initiative is expected to enhance the prospects for companies to tap the bond market. within three months of its operations, two submissions have been received with 30 more in the pipeline. these applications amount to a credit enhancement to raise rm8. 4 billion of bonds. a further initiative in this direction is the resumption in the operations of the corporate debt restructuring committee ( cdrc ), to facilitate the restructuring of debts, including private debt securities of the larger viable corporations. renewed optimism in the financial market it is now more than two years since the onset of the global financial crisis. the effects of the crisis on the asian economies began to be felt in the second half of 2008. measures to stabilise the financial systems in the advanced countries and the implementation of massive fiscal