Despite almost 10 years of ultra-easy monetary policy, and despite stronger growth and better labour market conditions, some countries are still devoid of inflation. This latest enigma of “missing inflation” has further spurred the search for the next best thing after inflation targeting. It has become increasingly clear that the nature of problems facing policymakers and the underlying heuristics are becoming very complex. What we thought we knew about inflation dynamics has been inadequate and has not factored in many other relevant factors. Inflation dynamics have evolved with structural factors such as the global value chain, demographics, technological advancements and the digitalisation of the economy. In such a dynamic environment, it is only logical to think that one must be pragmatic, flexible and agile. This is why we focused on inflation anchoring without being tied to a single numerical target. To effectively do this, our monetary policy framework will take into account a broader consideration of factors that could affect the domestic economy and financial system. It also allowed us some flexibility to monitor how our monetary policy actions could interact with key issues facing the public, such as distributional implications, cost of living, access to financing and financial inclusion. As we understand these interactions better, our responses, including monetary policy decisions, can be more nuanced and effective. Malaysia’s policy approach has remained relevant Inflation anchoring was not the only thing we did differently. In fact, Malaysia has never shied 4/7  BIS central bankers' speeches  away from taking the path less travelled.

Opening remarks for the 13th edition of the Regional Seminar on Financial Stability Mugur Isărescu, Governor of the National Bank of Romania Bucharest, September 12, 2019  Ladies and gentlemen, good morning and welcome! This is the thirteenth edition of our international seminar on financial stability organized by the National Bank of Romania together with the International Monetary Fund. We would like to express our gratitude for the IMF’s constant involvement and support in the successful outcome of this international seminar. Traditionally, the seminar takes place at the NBR training center in Sinaia, an enchanting place at the foot of the mountains, where the effects of autumn on the vegetation can be admired. This year we have decided that the seminar is to be held in Bucharest, because these days Bucharest is the host of the International George Enescu Music Festival, which you will attend tonight. We are happy to welcome representatives from central banks in the region, from our Dutch-Belgian IMF Constituency, as well as academia and think tanks. Last year’s edition was about the lessons we drew after the global financial crisis from a macroprudential perspective, but throughout time, various topics have been addressed, as well, like: - resolution and financial intermediation; - macrostability and systemic risks; - macroprudential instruments and policy framework. Ladies and gentlemen, 1  The seminar makes every effort to put forward challenging topics and I hope this year’s edition is no exception.