##ages appear to be in a continual state of flux. rules by their nature are simple, and when significant and shifting uncertainties exist in the economic environment, they cannot substitute for risk - management paradigms, which are far better suited to policymaking. were we to introduce an interest rate rule, how would we judge the meaning of a rule that posits a rate far above or below the current rate? should policymakers adjust the current rate to that suggested by the rule? should we conclude that this deviation is normal variance and disregard the signal? or should we assume that the parameters of the rule are misspecified and adjust them to fit the current rate? given errors in our underlying data, coupled with normal variance, we might not know the correct course of action for a considerable time. partly for these reasons, the prescriptions of formal interest rate rules are best viewed only as helpful adjuncts to policy, as indeed many proponents of policy rules have suggested. * * * in summary then, monetary policy based on risk management appears to be the most useful regime by which to conduct policy. the increasingly intricate economic and financial linkages in our global economy, in my judgment, compel such a conclusion. over the next couple of days, we will have the opportunity to consider in greater detail some important changes in our economic and financial systems and their implications for the conduct of monetary policy. as always, i look forward to an engaging discussion.

nor shamsiah mohd yunus : value based intermediation - beyond profit keynote address by ms nor shamsiah mohd yunus, governor of the central bank of malaysia ( bank negara malaysia ), at the global islamic finance forum 2018 ( giff ) " value based intermediation - beyond profit ", kuala lumpur, 3 october 2018. * * * henry ford, credited with revolutionising the american transportation industry in the 20th century, once remarked that “ business must be run at a profit, else it will die. but when anyone attempts to run a business solely for profit and thinks not at all of the service to the community, then also the business must die, for it no longer has a reason for existence ”. nearly a hundred years since, these words of wisdom remain true. perhaps, even more so now than ever. indeed, we have witnessed time and again, episodes of excessiveness, and the sole and unchecked pursuit of profits, that have led to global financial crises. the theme of this conference, “ value based intermediation – beyond profit ”, is therefore a fitting reminder of the role of finance, and islamic finance in particular, in helping build a more resilient and sustainable future. in the past half century, the world economy expanded sixfold, despite experiencing the worst and most expensive financial crisis. average per capita income more than doubled to about usd11, 000, compared to only about usd5, 000 in 1967. people are living longer, with better quality of life, greater access to basic necessities, improved health and medical care, and better education. despite such progress, we are faced with daunting challenges. these include harmful effects of environmental degradation and climate change that threaten global prosperity, stability and sustainable living. socioeconomic challenges such as rising inequality and lack of affordable housing are affecting the well - being of many communities. at around 225 % of global gdp, global debt is at a record high level and may leave a heavy burden for future generations to bear. it is increasingly clear that economic prosperity in the long run cannot exist without social equity and environmental responsibility. while the governments of 150 countries are committed to realising the united nation ’ s 17 sustainable development goals ( sdgs ) by 2030, this must be a shared responsibility. the private sector has a key role to play – a role, with finance at its centre, that has yet to live up to its full potential. with much at stake,