3 See Alan S. Blinder, Economic Policy and the Great Stagflation, Academic Press, 1979 4 See Tim Mahedy and Adam Shapiro, What’s Down with Inflation? FRBSF Economic Letter 2017–35, November  27, 2017, and Andrea Tambalotti, Stefano Eusepi, and Bart Hobijn, CONDI: A Cost-of-Nominal-Distortions Index, American Economic Journal: Macroeconomics, 3(3): 53–91, July 2011. 5 See James H. Stock and Mark W. Watson, Slack and Cyclically Sensitive Inflation, Working Paper. 6 See Ulrike Malmendier and Stefan Nagel, Learning from Inflation Experiences, The Quarterly Journal of  Economics, Volume 131, Issue 1, 1 February 2016, Pages 53–87. 7 See John C. Williams, Monetary Policy in a Low R-star World, Federal Reserve Bank of San Francisco Economic  Letter 2016–23, August 15, 2016. 8 See John C. Williams, Preparing for the Next Storm: Reassessing Frameworks and Strategies in a Low R-star  World, Federal Reserve Bank of San Francisco Economic Letter 2017–13, May 8, 2017. 9 See Thomas Mertens and John C. Williams, Monetary Policy Frameworks and the Effective Lower Bound on  Interest Rates, Federal Reserve Bank of New York Staff Reports 877, Revised January 2019. 4/4  BIS central bankers' speeches
Our domestic Islamic financial system is one of the most developed, with its diversity of players and financial products and services in Islamic banking, takaful and the Islamic capital market. Today, we are witnessing the establishment of another dedicated Islamic banking subsidiary that will contribute towards further strengthening the Islamic financial institutional infrastructure in Malaysia the launch of Affin Islamic Bank Berhad as an Islamic banking subsidiary of Affin Bank Berhad. With the domestic Islamic financial infrastructure in place, the emphasis is now to become more internationally integrated with the international Islamic financial system, thus increasing our economic and financial linkages with other parts of the world. Our efforts are to position Malaysia as an international Islamic financial centre and thus facilitate this international integration process. In this regard, the establishment of an Islamic subsidiary also increases the opportunity for entering into strategic partnerships with foreign interests, thereby increasing the potential for greater interface with more extensive markets beyond our domestic borders. On the domestic front, while tremendous progress has been achieved, much more needs to be done. The Islamic financial industry needs to allocate more resources toward investment in research and development to create more innovative products. Consumer awareness and consumer education also needs to be enhanced to support the growth of the Islamic financial industry.