samchain/econo-pairs-v1 huggingface dataset:
During the 2000s, the Albanian economy was most focused on non-traded sectors like construction, and hotels and tourism, with a low share in the growth of productivity. Improving them and successfully facing competition in the international markets should lie at the core of Albania’s new economic growth model. Bank of Albania’s analyses suggest that these structural changes will contribute to recovering the economy at a faster pace in the years ahead and restoring the previous growth rates. The agriculture sector meets the above criteria to lie at the core of this new model better than any other economic sector. On the other hand, we must recognise that despite Albania’s vast natural resources, we have not managed to fully utilise these potential resources for the agriculture sector to face competition in the international markets. The Bank of Albania sees great potential in agriculture, which, for a number of reasons, could not materialise in the past years but can become more beneficial in the future. Unlike other sectors, whose future benefits may be limited, agriculture may represent an important source for a second period of dynamic economic growth. The Albanian economy should be re-oriented towards those sectors whose capacity to compete in the international markets is the best signal for the development potential. The Albanian economy being a net importer of food products hints at a low level of competitiveness and represents one of the major future challenges.

In light of this, the Bank of Albania has in the past years initiated a campaign to improve the financial education of the Albanian people. The recent results of our questionnaires indicate that the Albanian urban population shows increasing and a more complete knowledge related to various financial problems they encounter. But the results on rural areas reveal that the education level remains considerably lower. Second, the Albanian agricultural sector suffers from the lack of information and evaluation. As I noted above, one of the reasons why banks hesitate to increase their lending is the lack of complete information on farms and their products. Further, the quality certification standards for Albanian products remain low. One of the main reasons restricting higher exports and, consequently, higher production, is the lack of certification in accordance with the highest standards for all the Albanian agricultural products. This type of certification does not only prove the elementary food security required by the European markets, but also establishes a starting point for competition in the market. The presence of these standards at a reliable level would lead to the improvement of all market mechanisms, by helping bank lending in proportion to the quality of products. In the framework of concerns facing the agricultural sector, the Bank of Albania has increased its interest in microcredit institutions.
Ball, L. and N. Sheridan (2005), “Does Inflation Targeting Matter?” in B. Bernanke and M. Woodford (eds. ), The Inflation-Targeting Debate, University of Chicago Press. Blanchard, O. and J. Gali (2007), “The Macroeconomic Effects of Oil Price Shocks: Why are the 2000s so different from the 1970s?” Working Paper Series N°13368, NBER. Blanchard, O. and J. Simon (2001), “The Long and Large Decline in US Output Volatility,” Brookings Papers on Economic Activity, (1) pp. 135-164. Bernanke, B. (2004), “The Great Moderation”, remarks by the Governor at the meetings of the Eastern Economic Association, Washington, DC. Betancour, C., J. De Gregorio and J. Medina (2008), “The Great Moderation and the Monetary Transmission Mechanism in Chile,” BIS Papers No. 35, Bank of International Settlements, pp. 159-178. Cavallo, E. (2007), “Output Volatility and Openness to Trade: A Reassessment”, Working Paper No.604, Inter-American Development Bank. Cecchetti, S., A. Flores-Lagunes, and S. Krause (2005), “Sources of Changes in the Volatility of Real Growth,” in C. Kent and D. Norman (eds. ), The Changing Nature of the Business Cycle, Proceedings of a Conference held at the H. C. Coombs Centre for Financial Studies, Reserve Bank of Australia. De Gregorio, J. (2007), “Defining Inflation Targets, the Policy Horizon and the OutputInflation Tradeoff,” Working Paper N°415, Central Bank of Chile. De Gregorio, J., O. Landerretche and C. Neilson (2007), “Another Pass-Through Bites the Dust? Oil Prices and Inflation,” Economía, Volume 7, Number 2, Spring, pp. 155-196.

Microfinance institutions should, therefore, strive to keep the transaction costs at a minimum and eliminate the possibility of incurring deadweight losses. The on-time delivery of microfinance loans is also a very important requirement. Most of the microfinance projects are agriculture based businesses. Hence, there is a necessity for meeting crucial expenses on-time. For instance, if a farmer has to apply fertilizer to his field, he has to do it on the due date. For him to buy fertilizer, he needs money also on the due date. This requires the microfinance institutions to release their loans on the due dates. Any undue delay would be immensely costly. A final word should also be said about the subsidization of the interest rates under microfinance credit schemes. Such subsidized credit is demanded, not by the microfinance borrowers, but by urban based social workers and politicians. The problem with subsidized credit is that it flows not into the microfinance projects but elsewhere. What microfinance borrowers need is not cheap credit. They need credit on simple terms in time at zero transaction costs. When the credit is subsidized, it not only leads to wastage, but also goes into the hands of undeserving individuals. Most probably, middle class and lower middle class people would flock to appropriate such credit which they plan to use for other types of non-productive purposes. In this context, informal money lenders would definitely provide a role model for microfinance institutions.
Global technology companies with a large customer base are making their way into the payment system. New technology and new participants give rise to new challenges. International platforms gather substantial information about us as individuals, especially if they know our payment patterns. Such information should not fall into the wrong hands. We are living in an increasingly digital world. From the comfort of our sofas, we can now access an unprecedented array of music, film and literature. From a tablet or a mobile phone, we can order groceries or control the temperature in our holiday home. Artificial intelligence and robotisation are also in focus. By managing processes using machine learning, work can be made more efficient. But even if technology appears to be advancing more rapidly than ever before, there is little visible effect on productivity growth for the economy as a whole. Both in Norway and among our trading partners, productivity growth has declined (Chart 4). In recent years, growth has been around one percent. Chart 4 Productivity growth in Norway and abroad. GDP per hour worked.

Sources: European Commission, Thomson Reuters and Norges Bank  Technological advances have reduced the relative cost of capital goods. Tasks have been taken over by robots and other capital equipment. This probably explains some of the decline in the labour share.7 The emergence of global technology companies is also reducing the labour share. With broad platforms and vast numbers of users, they dominate the market, which translates into both market power and substantial profits. The winner takes all. A few technology companies stand out by virtue of their size (Chart 7). Alphabet is one example. 80 percent of the world’s web searches are done through its Google search engine.8 Another example is Amazon. In 2017, the company accounted for 44 percent of all US online retail sales. Chart 7 The world’s largest listed companies. Market capitalisation in billions of USD1) Apple Alphabet Microsoft Amazon Facebook Tencent Berkshire Hathaway JPMorgan ICBC Johnson&Johnson ExxonMobil Bank of America 0  100  200  300  400  500  600  700  800  1) Market capitalisation at 9 February 2018. Source: Bloomberg  The decline in the labour share can primarily be explained by the fundamental transformation of the global labour market in recent decades. More countries are participating in global trade, labour mobility has increased, and offshoring production 7 Hagelund, K., E. W. Nordbø and L. Sauvik (2017): “Lønnsandelen” [The labour share], Aktuell kommentar 9/2017, Norges Bank (Norwegian only). 8 Source: Financial Times, January 2018 (https://www.ft.com/content/95d16c88-f795-11e7-88f7-5465a6ce1a00). 7  to low-cost countries has become easier.
Exchange rate certainty within Europe - even though only within Europe, and even though it is nominal exchange rate certainty rather than real exchange rate certainty, which is what matters in terms of competitiveness - would potentially enhance the benefits to be derived from the European Single Market. The euro’s second very powerful advantage is the possibility it opens up for much broader and more liquid financial markets. It will mean a progressive narrowing of spreads between borrowers and lenders, which is good news for the users of those markets - and that will be good news too for financial intermediaries as a group, because it will lead to higher volumes of financial activity. Not every individual intermediary will benefit, of course, in the more competitive environment, but those who survive will thrive! The City of London is already making an important contribution to this process of euro financial market integration. It is in fact the greatest contribution that the UK can make to the success of the 1  BIS Review 71/2000  euro while we remain outside. (It runs alongside the conceptually distinct, but closely related, pressure for broader international integration of financial markets, currently reflected in a spate of initiatives to unify trading platforms, and both clearing mechanisms and settlement systems, in which London, of course, is also very much involved.) These then - nominal exchange rate certainty throughout the Eurozone and integrated euro financial markets - are potentially powerful economic arguments in favour of UK membership.

This policy of “prepare and decide” has subsequently been confirmed by the publication of a National Changeover Plan, which sets out the key steps that would be involved in the transition following a positive decision on UK entry. This remains the Government’s policy. In the meantime, we continue to pursue macro-economic - both fiscal and monetary - stability and supply-side flexibility alongside our European partners, in our own national economic interest, which will also help to bring about closer convergence between our economies. Over the past seven years or so we have in the UK achieved the longest period of sustained low inflation we’ve known for a generation. Retail price inflation - on the Government’s target measure has averaged 2.6% since the beginning of 1993 and is currently running at 2.2%, or only 1% on the European harmonised index of consumer prices. But alongside low inflation we’ve had the lowest nominal interest rates that most of us can remember. Short-term rates have averaged some 6¼% since the MPC’s first decision in June 1997 compared with some 9.25% over the preceding decade. And 10 year government bond yields have fallen, with inflationary expectations, to around 5¼%, which apart from a brief period last year is the lowest they’ve been for nearly 40 years. Much more fundamentally we’ve enjoyed the longest period of uninterrupted, quarter by quarter, economic growth since records began some 45 years ago - with annual growth since Q3 1992 averaging 2.8% - between ¼ and ½% above most estimates of our underlying trend rate.
This will, in turn, help raise the comfort level and can usefully avoid potential policy missteps and create policy synergies that eventually foster confidence of investors. This is the kind of trust that no amount of legal text, conditions precedent, or covenants can match, but is developed through the friendship and goodwill among friends within the region. Countries in the same region tend to possess better understanding and coordination, and therefore, policies and initiatives at the regional level can be more effective and timely. Second, while the Asian financial crisis was a wake up call for Asia on the need for regional liquidity facility, Asian countries need to consider making such facility sufficiently large and effective with timely disbursement in light of the current global crisis. During the Asian financial crisis, more than 75% of the IMF’s financial package for Thailand came from the funding within the region. The present global situation has also reconfirmed the vision set for the by the Chiang Mai Initiative (CMI) that Asia needs to have its own regional liquidity facility to protect itself from contagion, be it caused within the region or from outside. It is therefore timely that coordination and cooperation among countries be further strengthened to ensure that prompt remedial actions can be put in place in light of the ongoing global financial crisis.

This is the most important contribution monetary policy can make to sound economic developments in the long term. Low and stable inflation provides the economy with a nominal anchor. This contributes to predictability for those taking decisions about saving and investment today, although the result depends on how the economy develops in the future. In addition, we will seek to prevent unduly wide fluctuations in output and employment in the short and medium term. In the long term, output in an economy is determined by the supply of labour, capital and technology. Monetary policy influences the economy with long and variable lags. This means we must look ahead when setting interest rates. I would therefore like to comment briefly on our assessment for the next three years, based on the analyses in the most recent Inflation Report, published in June (Inflation Report 2/05). The Norwegian economy is in an upturn and is now expanding at a brisk pace. Inflation remains low, but has edged up since last year. The risk of a fall in the level of prices and  3/7  markedly lower inflation expectations has diminished. At the same time, there appears to be little risk that inflation will rapidly move up to a level that is too high. The interest rate reductions through 2003 and into 2004 have resulted in low real interest rates. For a period, the real interest rate has been considerably lower than normal. The low level of interest rates is supporting the high activity level in the Norwegian economy.
I will then conclude with some thoughts on the implications these developments on talent development and management, in particular, for the financial sector. The challenge for recruiting and retaining the right talent has also become increasingly more acute, particularly for the financial sector. Therein lies the urgency for the greater focus of attention on these issues and the need to accord greater priority for this important agenda. The transformation of the economic and financial landscape The economic, financial and business landscape is rapidly being transformed and is continuously evolving. Globalisation and internationalisation, accelerated by liberalisation and the rapid advancement in technology are increasing connectivity between economies and between financial markets across borders. This is resulting in greater international economic and financial integration and interdependence. Regional integration in Asia has for example created immense opportunities for economies of scale while paving the way for new and larger markets. A significant global shift in this environment is also the growing importance of emerging economies. As a result, many of these economies are becoming huge consumer markets. In Asia, this is resulting in greater regional trade and cross border investment activity. A further fundamental change is the shift towards greater market orientation as markets are deregulated and liberalised. In addition, the more discerning consumers have heightened further competition resulting in a more competitive environment. The operating environment for businesses have therefore become more complicated with increased uncertainties in the economy and the financial markets.

In light of the more challenging environment going forward, generating the supply pipe line for talent and addressing the short supply of critical talent with new skills need to be given urgent priority. What are these skills? There has been considerable attention to the shortage of new and higher technical competencies – including in the area of risk assessment and management – required by financial institutions in the new operating environment. The growth in Islamic finance has also added important new dimensions to the talent requirements. Beyond these clear gaps however, the promotion of more sustainable business models in finance will require additional new skills which have not traditionally been areas of focus in financial institutions. This includes skills in change and crisis management, business recovery planning, the ability to develop and sustain long-term customer relationships, and skills to direct and manage operations in international and cross-cultural contexts. Also particularly important will be the ability to build, motivate and lead strong teams under significantly more challenging conditions in which institutions may be more constrained by regulation in their ability to recruit and retain talent simply by paying more. Perhaps more than in any other sector, the response to the challenges facing the financial industry in managing talent needs to be much broader, forward looking and more strategic given its central role within the economy.
Rise in labour costs Per cent 8  8 6  Norway  6  4  Trading partners  4  2  Euro area  2 0  0 1990  1992  1994  1996  1998  2000  In recent years, cost inflation in the euro area countries and among trading partners has been relatively low. Growth in labour costs in Norway has been roughly 11 percentage points higher than in the euro area and 10 percentage points higher than among trading partners in the past three years. Rise in labour costs  Rise in labour costs and unemployment 1995 and 2000. Per cent  8  Norway  6  Sweden Finland  4  Denmark Euro area  Netherlands  2  0 0  2  4  6  8  10  12  14  16  Unemployment as a percentage of the labour force  4  BIS Review14?/2001  A number of other small, open economies have recorded a decline in unemployment and lower growth in labour costs than Norway. In Sweden, unemployment has shown a substantial decrease over the past five years and wage growth is below 4 per cent. Three-year wage agreements are now being concluded, underpinning the basis for low cost inflation. In the Netherlands, unemployment has fallen to a very low level. Wage growth has picked up, but is lower than in Norway. In Denmark, unemployment has come down without an increase in wage growth.

Government assets and liabilities Estimates In billions of NOK Assets  Liabilities  Petroleum Fund Norwegian National Insurance Fund  390  Direct ownership  300  Minor holdings  100  Bonds and Treasury bills  170  50  State banks’ lending 165 Right to tax  Commitments of the welfare state  The previous table showing government assets and liabilities does not, however, provide a complete picture of the government’s financial position. The right to tax corporate and personal income and wealth and to levy indirect taxes is clearly the government’s most important asset. General government tax revenues are estimated at close to NOK630 billion this year. The expected real return on government net financial wealth is about a sixteenth of this. In 2005, when the value of the Government Petroleum Fund could reach NOK1200 billion, the total return on government financial assets will approach one tenth of general government revenues at the current tax level. At the same time, future expenditure on pensions, health, education, infrastructure and the judicial system represents a major commitment for the government. Government expenditure for maintaining and developing the welfare state will increase substantially in the years ahead, primarily as a result of demographic trends. Estimates show that government expenditure on old-age pensions and disability benefits will double from 7½ per cent of GDP in 2001 to 15 per cent of GDP in 30 years.
Measuring this effect precisely is of course hard, since we cannot easily identify what the counterfactual would have been in the absence of QE. But QE clearly acted to break a dangerous risk of transmission from severe market stress to the macro-economy, by avoiding a sharp tightening in financial conditions and thus an increase in effective interest rates. 3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  QE is normally thought to work through a number of channels: including signalling of future central bank intentions and thus interest rates; so called ‘portfolio balance’ effects (i.e. by changing the composition of assets held by the private sector); and improving impaired market liquidity. The Monetary Policy Committee’s decision on QE in March differed somewhat from previous rounds of purchases. A larger amount of purchases, £ was announced as this was judged as necessary to support economic activity and ensure a sustainable return of inflation to target. And the purchases were to “be completed as soon as is operationally possible” to address the emerging financial market dysfunction. In the paper we draw two lessons from the experience. First, it reminds us that the effect of QE can be state contingent. Consistent with that, second, the pace of QE purchases may be more important during a period of market dysfunction associated with a widespread shock to liquidity demand. Indeed, when the MPC voted to expand QE further in June, in more normal market conditions, the pace of purchases was reduced.

Many of our banks have embraced sustainability goals while our Islamic Banks are striving actively to adopt Value-Based Intermediation; banking and financing based on Principles of Shariah that encompass not just sustainability but also the wider goals of Maqasid Shariah and social economic well-being. Financial markets should not be left behind. We should strive to work towards adopting sustainable and ethical practices where we can in the Malaysian financial markets. Extra support can be given to market activities that nudge the economy towards sustainable development, inclusivity and social welfare. Again, the industry can think of ways and means of how you can play a role in this. Lastly, having experienced heightened uncertainties in recent years, we continue to need to  improve the financial market environment to ensure that markets are resilient against any form of shock. A part of this is that market players themselves need to be agile. This has become a necessity in the landscape of the financial world today which has shorter visibility on what we can expect due to the ever changing nature of the financial markets. The ability to adapt and react immediately is a must to thrive in future years. Data science analytics and greater expertise will increase the agility of financial institutions to acclimatise to not only new demand but also new regulations or developments. Alongside that, the development of talent with forwardthinking capabilities would be instrumental in elevating the quality of financial services.