samchain/econo-pairs-v1 huggingface dataset:
Importantly, SOFR proved to be resilient even during the market stress at the height of the pandemic last spring and will provide a rock-solid foundation for the post-LIBOR world.3 The final comment I’ll add on this topic is that while much progress has been made in the transition away from LIBOR, time is running out, and your transition from LIBOR should happen as soon as practically possible. This is not something to leave until the last minute. Economic Outlook OK, enough on LIBOR, at least for today. I’ll now turn to the theme of the economic outlook and where I see us on the path to a full recovery. Let me begin by saying that we’ve come a long way since the darkest days of the pandemic, and I expect even brighter days ahead—and I don’t just mean that because it is finally summertime. 1/3  BIS central bankers' speeches  We find ourselves at an extraordinary juncture in the recovery. Thanks to widespread vaccinations and robust support from fiscal policy, the economy is reopening more quickly and more strongly than expected. When it comes to the economy, it’s getting better all the time. The rapid rebound is excellent news—it means more jobs and a brighter future. But, it also means that we are seeing strains as businesses try to keep up with the rapid acceleration in demand for their products. After sharp declines in employment, production, and prices last year, the opposite is now occurring.

BIS central bankers’ speeches  1  Our evidence suggests short-termism is both statistically and economically significant in capital markets. It appears also to be rising. In the UK and US, cash-flows 5 years ahead are discounted at rates more appropriate 8 or more years hence; 10 year ahead cash-flows are valued as if 16 or more years ahead; and cash-flows more than 30 years ahead are scarcely valued at all. The long is short. Investment choice, like other life choices, is being re-tuned to a shorter wave-length. Public policy intervention might be needed to correct this capital market myopia. 2. The short-termism debate  The short-termism debate is not new. Excess discounting of future outcomes was a familiar theme among Classical economists. For Jevons, “the untutored savage, like the child, is wholly occupied with the pleasures and troubles of the moment; the morrow is dimly felt; the limit of his horizon is but a few days off”.5 For Marshall, people acted like “children who pick the plums out of their pudding to eat them at once”.6 For Pigou, it demonstrated a “defective telescopic faculty” such that “we see future pleasures on a diminished scale”.7 And nowhere were these problems more acute than in financial markets. Keynes, himself part-time speculator, was well-aware of the perils of short-termism in investment choice, both moral and financial: “It is from time to time the duty of a serious investor to accept the depreciation of his holdings with equanimity without reproaching himself.
I would therefore like to very briefly round off by saying something about what I personally believe could increase the long-term growth potential in Sweden. I believe that the stimulance for increased growth capacity in the Swedish economy can be found in three main arease, which concern, firstly, efforts to promote entrepreneurship, i.e. more people choosing to start up companies and companies growing. The entrepreneurs' share of the work force in 6 Sweden is low. Compared with other OECD countries, Sweden was ranked no. 19 in 2000. Secondly, we should invest more in knowledge and education, at all levels and for everyone. Research belongs here too, as does the link between research and new products - innovations. Education promotes both economic growth and individual welfare. The third area can be called the renewal of working life. A good, rich society must make use of the productive force that all people have. To make this possible probably requires new thinking in many areas. So, how about access to capital, this is surely decisive for growth? Certainly, but capital seeks to go where it will obtain the best return. Attractiveness, an ability to attract and retain investments, is created by entrepreneurs, research & development and competence. In an increasingly globalised market, regions and places compete with one another for investments. The most important factor in attracting investments is tied to people's capacity. The key to growth is human capacity and will.

Today, I intend to discuss my view of monetary policy and explain in more detail why I entered a reservation at the latest monetary policy meeting. Much of the reasoning is the same as when I advocated a lower repo-rate path. 2 The new points that I want to make here today relate to the reasons why I entered a reservation in favour of the extended repo-rate path rather than a lower repo-rate path with a reduced repo rate. Let me begin by presenting my general view of monetary policy. 1  One may ask why the focus should be on the CPIF and not the CPI. In a situation in which significant reporate changes have very large direct effects on the CPI, I consider it to be more appropriate to focus on stabilising the CPIF around the inflation target, instead of the CPI. 2  See also the speech “Why a lower repo rate?” that I made at Umeå University on 24 February this year for a detailed account of that reasoning. BIS Review 60/2010  1  Flexible inflation targeting stabilises both inflation and resource utilisation When discussing what repo-rate path one should choose it is natural to take the Riksbank’s monetary policy objectives as a starting point. The Sveriges Riksbank Act and its preparatory work stipulate that monetary policy focuses on stabilising inflation around the inflation target and resource utilisation around a normal level. This is what is referred to as flexible inflation targeting.
Such availability has served as a valuable source of information in credit assessment and help expedite loan processing time. In the same vein, with greater availability of information on SMEs from the Bureau, the processing time for SME loans can be similarly shortened and decisions to grant financing can be made based on a more comprehensive set of information. We hope and encourage the financial institutions to avail themselves of the services provided by the Bureau and help create a healthier and more transparent credit culture amongst the SMEs and lenders. I would now like to take this opportunity to congratulate all the award recipients today. We hope the recognition accorded by CGC will help to create a better understanding of the spirit behind this initiative, which is aimed at fostering mutually beneficial working relationship between the CGC and the financial institutions for the over-arching objective of promoting SME sector development. You have certainly given us your unwavering support through your active participation in our guarantee schemes. We look forward to your greater participation in the future. On another note, I would take this opportunity, in conjunction with our 35th AGM, to thank all employees of CGC for their understanding and commitment in adopting and adapting to changes. This include the internal organizational change that we have been through in the past two years to face the challenges of the dynamic business environment of today. Thank you for the kind attention and have a pleasant day. 2  BIS Review 75/2008

I should also mention that Hong Kong is not alone in this culture campaign. In October last year, I was invited by President Bill Dudley of the New York Federal Reserve Bank to join him in a panel to discuss corporate culture. This was in fact the third annual conference on culture organised by the New York Fed. The key takeaway from the New York conference was that there is a growing momentum amongst key supervisors as well as large international financial 3/4  BIS central bankers' speeches  firms to encourage and nurture good corporate culture and ethical values in the industry. I should also add that, since my appointment to chair the Standing Committee on Supervisory and Regulatory Cooperation of the Financial Stability Board in April this year, I have been pushing for closer international collaboration in promoting good corporate culture. The priority of this Committee in the next year or two is to place greater emphasis on three aspects of governance, namely, (i) addressing information gaps and due diligence in employment of individuals with a history of misconduct, or the so called “rolling bad apples” problem, (ii) responsibility mapping for senior managers of financial firms, and (iii) the use of governance framework and appropriate compensation system to address culture risk factors that drive misconduct. These priorities, when implemented, will go a long way in promoting the right kind of culture in the financial industry and in helping restore public confidence and trust in the financial firms.
Sure, the euro circulates in Switzerland, just like the Swiss franc is being used in neighbouring France, Germany, and Italy, but the phenomenon remains marginal, and it does not exceed the use the French francs, German marks, and Italian liras in the pre-euro world. This is not surprising for, even though the euros (and dollars for that matter) are happily accepted in Swiss shops, cafés, and hotels, the exchange rate is usually unattractive and the change is given in Swiss francs. Shopkeepers and restaurant owners are not in the business of providing financial services, and foreign tourists are still better off changing their euros at banks or using their credit cards. True, Swiss firms use the euro extensively, some do much of their billing in the European currency, and a few of them have even switched their accounting to euros. Some natural hedging takes place as well, although it is not clear  2  BIS Review 72/2004  how efficient this is. It is worth pointing out, however, that some of our largest firms do much of their billing and their accounting in dollars, while others continue quite happily to use the Swiss franc. The fact that “euroization” has not taken place should not really surprise us. There have been other examples of small independent currencies surviving in the neighbourhood of much larger monetary zones. The example of the Canadian dollar comes to mind. The Loonie has been floating for the past several decades, and it has served Canada rather well.

Economic and monetary developments Since our last meeting, the Governing Council has left key ECB rates unchanged: the main refinancing rate currently stands at 0.75%; the rate on the deposit facility stands at 0%; and the rate on the marginal lending facility stands at 1.50%. Economic activity contracted for a third consecutive quarter in the fourth quarter of 2012. Available indicators signal further weakness at the beginning of 2013, with domestic demand remaining dampened. This is due to weak consumer and investor sentiment and to the necessary balance sheet adjustments in both the public and private sectors. Foreign demand also remains subdued. Economic weakness in the early part of 2013 is expected to be followed by a very gradual recovery later in the year. Strengthening global demand, our accommodative monetary policy stance and the improvement in financial market confidence across euro area countries should all work their way through to spending and investment decisions and support the recovery. Even though we have yet to see sustained improvement in the real economy, survey indicators have confirmed earlier evidence of a stabilisation of business and consumer confidence, albeit at low levels. Taking a somewhat longer view, the improvement in financial market confidence since last summer has been significant. As regards the exchange rate, let me be clear that the exchange rate is not a policy target, but it is important for growth and price stability.
Thus, there is a long intellectual tradition linking rule of law and sound money to functioning of free markets. But this connection found perhaps its clearest expression in the ordoliberal school that developed in Germany in the 1930s. Conceived at the University of Freiburg by Walter Eucken and Franz Boehm, the central understanding of ordoliberalism was that a stable and well-functioning market economy required a strong legal and institutional  1  “Moneta debt esse quasi quaedam lex et quaedam ordinacio firma”. Nicolas Oresme, Traité de la première invention des monnaies (ca. 1355). BIS central bankers’ speeches  1  framework. Pure laissez-faire capitalism was unstable and liable to capture by monopolies. Collectivist central planning, on the other hand, led towards waste and totalitarianism. Thus, as the ordoliberals saw it, the role of government was to frame markets in such a way that actual outcomes would approximate the theoretical outcome in a perfectly competitive market. Achieving such outcomes could imply de-regulation, if government was interfering too much in market processes, or re-regulation, if market failures were apparent – a feature that distinguished it from a laissez-faire approach. In other words, the role of government was both to untie the “invisible hand”, and to keep it firmly cuffed to the rule of law. At the same time, ordoliberalism recognised the crucial importance of monetary and economic stability to a well-functioning market.

Without a solid legal and institutional framework to organise market interactions, however, the country experienced a series of crises, while resources ended up being concentrated in the hands of a few powerful individuals. These experiences led the assumptions of the Washington Consensus to be progressively revised. Even the IMF acknowledged the flaws in the original list of suggestions, in particular regarding the importance of institutions.4 Reviewing the available evidence, the economist Dani Rodrik wrote that the strength of institutions is the most important element of development economics. The mantra of the so-called “revised” Washington Consensus, he wrote, should be to “get the institutions right.”5  2  Vanberg, Viktor J. “The Freiburg School: Walter Eucken and Ordoliberalism.” Walter Eucken Institut, April 2004. 3  The Chicago Boys were a group of young, liberal economists from Chile educated at the University of Chicago. 4  “Report on the Evaluation of the Role of the IMF in Argentina, 1991–2001.” Independent Evaluation Office of the IMF, July 2004. 5  Rodrik, Dani, et al. “Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development.” IMF Working Paper Series, November 2002. 2  BIS central bankers’ speeches  2. The principles of effective economic policy  The aim of this brief review is to underscore that all well-functioning market economies are based on a consistent accord of rules, instruments and institutions. And what I would like to turn to now is the state of that accord in the euro area.
Coordination between monetary and fiscal policy  An occasional criticism of the new arrangements is that they impede proper coordination of monetary and fiscal policy. Two main reasons are usually advanced. First, the monetary and fiscal authorities may have conflicting objectives which they are free to pursue. Second, even if they have the same objectives they may be uncertain of each other’s intentions. Neither concern is, I believe, well-founded. The first stems from a line of academic thinking which assumes that the central bank attaches more importance to the control of inflation than the Government, which in turn gives greater weight to output and employment. Hence when setting interest rates and fiscal policy, the two authorities could be pulling in opposite directions, and, realising this, might pull harder to offset the actions of the other, resulting in a distorted policy mix. Although such an outcome is possible in principle elsewhere, this problem does not arise in the UK. The reason is simple. The Chancellor sets the objectives for both fiscal and monetary policy. It is the Chancellor who sets the inflation target and then delegates the responsibility to achieving that to the Monetary Policy Committee. So no conflict arises. Nor are the two authorities unaware of what the other is doing. A Treasury representative attends meetings of the MPC, and one of his duties is to brief the Committee on fiscal policy developments. This may take the form of advance notice of the overall fiscal stance to be announced in the Budget.

Ardian Fullani: The importance of economic research Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the workshop “Economic research in South-Eastern Europe”, Tirana, 15 November 2007. *  *  *  Dear ladies and gentlemen! It is a great pleasure to be here today and open the proceedings of the workshop “Economic research in Southeast Europe“. First, allow me to express my thanks to the representatives from the respective central banks for their participation in this workshop and all the other guests present today. Let us hope that this workshop will serve as a catalyst for a more intensified exchange of experiences among our region in the field of economic research. This process is of special importance with a view to improving the standards of economic research and for enhancing our know-how in this area. Undoubtedly, timely and accurate economic research is vital for undertaking more sound economic policies for boosting a stable and non-inflationary growth and for coping with various risks under a dynamic and rapid integration of our economies. From a central bank’s viewpoint, economic research should aim at reaching an optimal balance between the significance to the monetary policy or financial stability, their quality and timely availability. When compared to the academic economic research, a central bank’s economic research should manifest the same quality, but be positioned on assisting the monetary policy decision-making process. Otherwise, their added value is overwhelmingly reduced.
A highly topical issue is, for instance, how developments in stock-markets, which are now of major importance for households, are likely to affect private consumption. Then, of course, forecasts can be wrong simply because something unexpected happens. The Gulf war and the Asian crisis are two examples but even smaller shocks can upset earlier predictions. The uncertainty that is inherent in decision-making is handled by not concentrating exclusively on one forecast for the economy and inflation. We also look at a spectrum of risks in the form of alternative scenarios. Last December, for instance, it was conceivable that economic activity would be weaker on account of a slowdown in the United States, with repercussions on the Swedish economy and inflation. At the same time, factors that might lead to higher inflation were the wage negotiations going wrong, the oil price rising and the exchange rate remaining weak. Since then the picture has shifted; weaker activity and a lower oil price have reduced the risks of inflation, though there are still certain upside risks from domestic inflation, future wage agreements and the weak exchange rate. We try to gauge the probability of each scenario and multiply this probability by the effects on inflation. In this way we arrive at a distribution of the probabilities in our assessment of inflation. The result serves as a foundation for monetary policy. A broad, comprehensive internal discussion Monetary policy is discussed by the Executive Board eight to ten times a year.

We do not burden the banking system any more than is necessary for us to be able to steer short-term money market rates. Ladies and gentlemen, we monitor the impact of negative interest precisely, and we take the side-effects seriously. However, we remain convinced that the benefits it brings Switzerland as a whole clearly outweigh the costs. The negative interest rate and the willingness to intervene are currently the best instruments for ensuring appropriate monetary conditions and thus securing price stability and supporting the economy. Page 4/6  Berne, 12 December 2019 Thomas Jordan  News conference  Monetary policy outlook  Allow me to summarise the key messages with regard to our monetary policy. We anticipate that our economy has expanded by around 1% this year. We are expecting growth of between 1.5% and 2% next year. Inflation expectations are within the range consistent with price stability. The conditional inflation forecast for the coming quarters is slightly lower than in September, but it is essentially unchanged in the longer term. The Swiss franc remains highly valued, and the situation on the foreign exchange market is still fragile. Against this backdrop, our expansionary monetary policy remains appropriate. Monetary policy and climate change  This brings me now to the significance of climate change for the SNB. When it comes to this key issue, we are focused first and foremost on being able to properly assess the possible consequences for the functioning of economies and financial systems, both in Switzerland and worldwide.
Other financial service needs expected by individual customers to be on the rise are the use of ATM and life assurance, while more uses of phone banking and Internet banking, provident fund management and cash management are expected by corporate customers. Unattractive aspects of financial institutions that drive customers away from using their financial services Although financial institutions, especially banks, are still the main financial service providers to consumers in Thailand, there are some aspects of their services considered not so user-friendly, such as: •  complicated procedures and long period of time for getting credit approved;  •  inconvenient access to the services;  •  inflexibility in the terms and conditions of repayment; and  •  the emphasis of banks on collateral instead of repayment ability. 2. Social aspects of retail banking sector  As you can see, these findings show that there are some gaps of the underserved to be filled in the financial sector, and retail banking is an area of potential growth. Moreover, we regulators believe that the consideration in retail banking sector extends above and beyond profit making for service providers and systemic stability because excess in this sector not only exacerbates a boom and bust cycle of credit, but also causes financial distress to over-leveraged consumers, triggering more social problems. Therefore, with profit-making comes responsibility - banks should be responsible for consumer education programs as well, disclosing information such as interest charges and fees of financial services.

Prior to issuing a policy, its final draft is sent out for comments from stakeholders both in and outside the Bank of Thailand, especially the industry, to avoid the problem of impracticality and minimize the cost of compliance on the part of financial institutions. Regulation and guidelines are also subject to regular review and revision to make sure that they are  4  BIS Review 22/2004  up to date and in tune with technological changes and market developments. To ensure that our supervisors competently meet these challenges, we have undertaken steps to enhance their supervisory capacity. The School for Examiners was established to provide training programs ranging from basic concepts of bank supervision to how to lead a team in bank examination based on risk-based supervision. Specifically, we are working to enhance quantitative skills necessary for comprehensive implementation of Basel II and financial engineering skills to keep pace with the developments of new financial products and package risks. To maintain stability: The prime concern shared by regulators of financial institutions is a stable financial system that is resilient to shocks and supports efficient allocation of resources in the real economy. One of the pitfalls of the retail banking market in Thailand before the Asian crisis was information asymmetry whereby creditors only had partial knowledge of their debtors’ financial indebtedness, including history of repayment. To address this weakness, two credit bureaus were set up so that banks can accurately assess the risk profile and repayment ability of a debtor.