Orphanides, Athanasios, and John C. Williams, “Inflation Targeting under Imperfect Knowledge,” in Frederic Mishkin and Klaus Schmidt-Hebbel (ed.) Monetary Policy under Inflation Targeting, Central Bank of Chile, 2007. Reprinted in FRBSF Economic Review, 2007. Reis, Ricardo, “Losing the Inflation Anchor,” Brookings Papers on Economics Activity, Fall 2021, 2022, 307-361. Swanson, Eric T., and John C. Williams, “Measuring the Effect of the Zero Lower Bound on Medium- and Longer-Term Interest Rates,” American Economic Review, 104 (10), October 2014, 3154-3185. 1 Board of Governors of the Federal Reserve System (2012). 2 Board of Governors of the Federal Reserve System (2020). 3 See Orphanides and Williams (2004, 2005, and 2007). There is a large theoretical and empirical literature on the formation of expectations. See, for example, Evans and  Honkapohja (2001), Malmendier and Nagel (2016), Coiboin et al (2022), and references therein. 4 As discussed in Levin and Taylor (2013), data on longer-run inflation expectations were spotty in past periods of high inflation. This situation has improved markedly over  the past 20 years, first with the appearance of inflation-indexed Treasury securities, and more recently with the introduction of the Survey of Consumer Expectations in 2013, and other surveys of businesses and market participants. 5 This is constructed by inferring the expectations 6-10 years from matched individual responses for “the next ten years” and “the next five years,” then taking the median  from the sample.
In 2008, the Export-Import Bank of Korea and Industrial Bank of Korea successfully raised a total of RM2 billion via bond issuance in the Malaysian bond market. Moving forward, the sukuk market represents an important channel to reinforce regional financial integration. It presents an opportunity for Korean corporations to raise financing and issue sukuks out of Malaysia. In addition, Korean investors can also participate in the wide range of Islamic financial instruments in the Malaysian financial markets, including from more than 150 Islamic unit trusts, Islamic REITs, wholesale mutual fund products and other Islamic structured products. In addition to robust economic ties and potential financial links, Korea and Malaysia enjoy a growing mobility of talents. With the rise in Korean investment in Malaysia, this has led to an increase in Korean expatriates. Koreans are also coming to Malaysia as students and to participate in our Malaysia My Second Home programme. In addition, the Korean Wave, which spread to Malaysia in early 2000s, has contributed to make our country more aware of the Korean culture and traditions, thus promoting a better understanding between these two countries. Prospects for the Malaysian economy Malaysia is an economy that is transitioning into a new phase of development. In the current environment, our economy is now firmly on the recovery path. This year, the Malaysian economy is projected to grow in the region of 5% with further upside potential.