products which will allow islamic finance ’ s integration into the international financial system. bibliography books • al - bashir muhammad & al - amine muhammad, risk management in islamic finance – an analysis of derivative instruments in commodities markets, brill academic publishers, 2008. • dusuki dato ’ wajdi asyraf, islamic finance : an old skeleton in a modern dress, isra series in contemporary islamic finance, volume 2, 2008. • megret j., le role des autorites prudentielles et des banques centrales, in integration des marches financiers, dir. dominique servais, 3 ed., 2007. • laldin akram mohamad, fundamentals and practices in islamic finance, isra series in contemporary islamic finance, volume 1, 2008. • bahrain monetary agency, islamic banking & finance in the kingdom of bahrain, 2002. articles • ariff mohamed, monetary policy in an interest - free islamic economy nature and scope, monetary and fiscal economics of islam ; http : / / www. financeinislam. com / article / 1 _ 36 / 8 / 143. • ameinfo, cbb set to launch key islamic financial instrument, 9 june 2008 ; http : / / www. ameinfo. com / 159772. html. • bacha & obiyathull i. : derivative instruments and islamic finance : some thoughts for a reconsideration, international journal of islamic financial services, 1 1 ( 1999 ), p. 9 - 25. • bataineh sufian & carole, la finance islamique : opportunites et challenges pour le grand - duche de luxembourg, to be published in a forthcoming bulletin of the association luxembourgeoise des juristes de droit bancaire, 2009. • burton john, issuance of islamic bonds expected to drop further, financial times, 23 january 2009 ; http : / / www. ft. com / cms / s / 0 / d5da10b6 - e8a2 - 11dd - a4d00000779fd2ac. html? nclick _ check = 1. • chan francis, islamic banks “ largely insulated ” from financial crisis, the straits times, 12 december 2008 ; http : / / www. asianewsnet. net / news. php? id = 3081 & sec = 2. • chapra umer, the

core inflation was concerned. the projection of the head line inflation, however, was systematically too low, because – among other reasons – the scale of the pass - through of past energy or commodity price shocks into output prices has been underestimated. secondly, upward risks to headline inflation stem from pronounced base effects. base effects occur when variations in the annual growth rate of the hicp are the result of an atypical movement in the index in the base period. they tend to be particularly influential during periods when inflation volatility 12 months earlier was high, for example as a result of sharp movements in commodity prices. it is expected that 2011 will benefit from negative cumulative base effects from energy and food in 2010 of up to 0. 7 percentage points. thirdly, the choice of leading sub - indicators is a tricky one. let me give an example. in recent years energy prices, namely for crude oil, contributed to an increasing extent to the volatility of headline inflation. there is, in fact, not just one price for “ oil ”. traditionally west texas intermediate ( wti ) commands a higher price than brent crude. most recently the price differences between the two benchmark sorts of crude oil showed anomalies : on 1 march, wti was trading around 100 us dollar per barrel, while brent was at 114 us dollar per barrel. while this huge difference could be partially explained by regional factors like the cold winter in europe and the large stock of wti oil in the us, the reliability of these prices to signal global scarcity can be questioned. fourthly, one major driver of inflation is the dynamics of the economy. to measure the slack in the economy, the deviation of aggregate demand from the economy ’ s potential supply – the so - called “ output gap ” – is often seen as a helpful guide for policymakers. on this logic, inflation rises, when aggregate demand exceeds potential output. however, the concept of a stable relationship between output gap and inflation is not only frequently challenged in theory but also hard to apply in practice. the operational appropriateness of the output gap as a guide to policy is limited by the availability of reliable real - time estimates. for example, estimates of the euro area output gap, as published by international organizations from 1999 to 2004, underwent significant revision. some revisions matched or even exceeded the original estimate of the gap itself. bis central bankers ’ speeches complexity has increased further because of the financial crisis : in this context, the crisis has had