18  BIS Review 11/2004  Chart 27. Debt and interest expenses Per cent of household income 200  12  8  4  Interest expenses (left-hand scale)  Debt (right-hand scale)  150  100  50 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 Sources: Statistics Norway and Norges Bank  Conclusion To sum up: The operational target of monetary policy is inflation of close to 2½ per cent over time. Norges Bank operates a flexible inflation targeting regime, so that weight is given to variability in output and employment and inflation. Norges Bank has not defined an exchange rate target. A flexible exchange rate enhances stability in output and employment. A structural feature of open economies like the Norwegian economy - with a national currency - is that the exchange rate fluctuates. The forward exchange and options markets have provided companies with greater scope for hedging against foreign exchange risk. An economic turnaround has occurred, with a soft landing after the long period of high cost inflation in Norway and low activity in the global economy. But inflation is too low. The appreciation of the krone through 2002, a change in trade patterns and external economic developments have contributed to low import price inflation. Domestic competition also appears to be exerting downward pressure on inflation. As a result of both changes in the international division of labour and increased domestic competition, there is idle labour and available real capital in Norway.

By placing value-based and sustainability consideration at the core of the economic recovery plan, enormous opportunities lie for Islamic finance to support sustainable solutions towards postpandemic recovery. With deeper materialisation of these principles nurtured into modern financial context, it could create a seismic change in mainstreaming value-based consideration as an anchor to any business and commercial decisions. This encourages the embedment of Shariah values in financial offerings to deliver positive outcomes. The wisdom, diligence, and inquisitive mind of Shariah scholars are thus undoubtedly the integral component within a 1/4  BIS central bankers' speeches  financial system in providing impactful and practical Shariah advice amid the fast-changing business environment. More so, during the time of crisis. We see this transpiring. Through an industry-driven initiative, Islamic banking institutions in Malaysia are committed to adopt “Value-based Intermediation” (VBI) which advocates for positive and sustainable impact through the practices, offerings, and conduct of institutions. Guidance is also provided in incorporating SDG-oriented risk considerations in financing and investment decision making process, through the Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF). Similar importance has also been recognised in the takaful industry, with the recent introduction of VBI for Takaful Framework. The framework focuses on integrating VBI principles into the underwriting and investment decisions, as well as business operations of takaful and retakaful operators that will reshape and sharpen practices of the industry towards delivering economic and societal outcomes more sustainably.