Extensive empirical research on price flexibility and inflation persistence in the euro area has recently been produced in a concerted effort that has occupied staff of the ECB and of the entire European System of Central Banks. 8 It comes to two main conclusions. First, in the euro area, prices are distinctly less flexible than, say, in the United States.
The existence of global regulations and standards is essential to promote cross-border transactions and foreign participations in the development of Islamic Finance in Asia and other regions. Currently, we already have several international institutions, such as IFSB and AAOIFI which have authority to issue regulations and standards. The role of those institutions should be enforced and improved.