not in hundreds of thousands. that is why we have a highly liberal licencing policy for opening islamic banks, subsidiaries or branches. but i must caution you that we do not wish to transform this into another facade by moving too quickly and too imprudently. you should have all the ingredients in place - shariah advisors and auditors, credit appraisers and marketing specialists, product development capacity, systems and technology - before you approach the sbp. merry - go - around a few experienced individuals in this field by offering them attractive compensation packages will soon out price islamic banking products from the market. this is not in our long - term interest that such kind of reckless actions put the future of islamic banking in pakistan at risk. ladies and gentlemen, there are many more tasks we have to do but i thought if i had too many items on the platter it would not be possible for us to manage it within the timeframe of the next five years. but, as i said earlier, these are only some proposals and suggestions for your consideration, critical review and scrutiny. you may have some other priorities in mind which may make better sense. please feel free to articulate them as i do not have any pretensions of having monopoly on wisdom. my purpose is to initiate discussion, debate and dialogue as to what we ought to be doing together in the next five years. i hope that all of you will come back to me with your feedback and ideas and then we can arrive at a consensual roadmap. in the end, i wish to thank each one of you for your support, cooperation and assistance to my colleagues at the state bank of pakistan and myself. without your active collaboration we could not have achieved what we have done so far and we look forward to even better relationships in the future to meet these difficult challenges together.

expectations matter welcoming remarks at the joint conference on household expectations 26. 09. 2019 | frankfurt am main | jens weidmann 1 introduction 2 taking different inflation expectations into account 3 gaining deeper insights from household surveys 4 conclusion 1 introduction governor villeroy de galhau, dear francois, ladies and gentlemen, dear colleagues, it is my great pleasure to give you all a warm welcome to this get - together at the bundesbank guest house to set the tone for our joint conference with the banque de france on household expectations. in the early 20th century, the world was stunned. wilhelm von osten, a german mathematics teacher, presented a horse which appeared to be able to correctly perform arithmetic calculations. the horse, called “ kluger hans ” ( or “ clever hans ” ), could also read the clock, form sentences and reply to other questions, giving answers by tapping his hoof. a public commission was set up to study this intelligent animal, but could find no evidence of a hoax. it was a young researcher who eventually discovered what was going on. after years of training, “ clever hans ” was able to identify tiny changes in the questioners ’ facial expressions that unintentionally signalled the expected behaviour. without facial contact, the horse could not perform any of the tasks. this shows that observers ’ expectations can impact the observation. similarly, our economies are not just mechanical systems combining labour input, capital and technology : they are also driven by our expectations. at least since john muth introduced the concept of rational expectations in 1961, it has been the case that expectations of economic agents play a key role for both economic theory and policy. after the experience of stagflation in the 1970s, central banks around the world today acknowledge the importance of anchoring inflation expectations and preserving the credibility of monetary policy. [ 2 ] this is also reflected in estimates of the phillips curve which demonstrate that inflation expectations are one of the key determinants of actual inflation. 2 taking different inflation expectations into account however, there is the question of whose inflation expectations matter to monetary policy and which indicators should be monitored. in terms of inflation pressures arising from labour and goods markets, it would be appropriate to consider inflation expectations across firms and households which are engaged in these markets. economic experts, meanwhile, may be better informed about monetary policy and central bank intentions. and their forecasts could also provide guidance to other agents. in contrast to such survey - based indicators, high - frequency data on