samchain/econo-pairs-v1 huggingface dataset:
To my mind, the answers will invariably call attention to three imperatives – a rethinking of value; a rethinking of risk; and a rethinking of human capital. Allow me to briefly address these in turn. Key Message 1 – Rethinking value through a renewed focus on the fundamentals of Shariah First, rethinking value. The industry must elevate the fundamentals of Shariah to realise its full promise. The business models of Islamic financial institutions should be guided by the 1/4  BIS central bankers' speeches  overarching objectives of Shariah (Maqasid Shariah) – which are to preserve and advance the common interest of society at large, by preventing harm and maximising benefits. This is now more important than ever to steer growth and development on a more sustainable path. In Malaysia, the industry with the support of the Central Bank, is taking concrete steps to drive strategies aimed at increasing the positive impact of finance on society. This is outlined in a Strategy Paper on Value-based Intermediation (VBI), which was released in July last year. The commitment to adopt VBI is a significant step by the industry to clearly identify Islamic finance with sustainable practices, as it should. It has also set in motion initiatives that will raise the bar for processes, practices, offerings and conduct that promote sustainable businesses and communities. We expect that over time, the adoption of VBI will have a significant impact on business models of Islamic financial institutions, including the drivers of profitability and risks.

In ASEAN, we are expected to be more integrated as a region arising from economic and financial integration process. It is from this perspective that I would like to expound some ideas on what ought to be the immediate priorities for the industry and the Association. Creation of domestically strong businesses With the foundation laid solidly for the conduct of professional and efficient money services business in the industry, the aspiration is for the creation of a pool of domestically strong and vibrant businesses that are able to compete with the best and expand beyond the Malaysian shores. Such businesses would be characterised by the ability to deliver a strong value proposition; and are committed to offer excellent service to their customers. To achieve this goal, I would like to focus on 3 immediate priorities for the industry: •  Firstly, continuing to nurture a mindset change within individual companies to spur and sustain the progress of the industry;  •  Secondly, putting in place a comprehensive human capital development plan to support strategies for the further advancement; and  •  Thirdly, creating the right incentives and a strong reputation for the constant delivery of high quality and innovative money services. Mindset change We are seeing many positive changes now taking place in the industry. Sustaining this transformation will call for businesses to have a long-term strategic view, the perseverance, willingness and be agile enough to adjust to changes in the operating environment.
Compare, for instance, the IT bubble at the beginning of the 2000s with the current crisis, where a bubble in the US housing market played a key role. Although the IT bubble resulted in heavy stock market falls and hit many investors hard, the crash did not have major effects on the real economy, which stands in sharp contrast to the effects of today’s crisis. The same applies in a comparison with the Swedish financial crisis at the beginning of the 1990s. A decisive difference between a stock market bubble and a property market bubble is that the latter is almost always linked to an untenable credit boom. When house prices rise, the value  2  BIS Review 70/2010  of the underlying assets increases, which gives scope to borrow even more with this asset as collateral. At the same time, increased lending provides more purchasing power, and this contributes to prices rising even more. It becomes a self-reinforcing spiral that can be very powerful – both in the upward phase and the downward phase. When the upward spiral is broken, there is a turnaround and a rapid downward spiral, which is probably much quicker than the upturn. Prices fall, the mood becomes increasingly negative and lenders and borrowers become increasingly unwilling to take on risk. The banks’ loan losses increase. The result may be a long period when households and companies hold onto their money more firmly to reinforce and balance their finances. Consumption and investment are weak and lending is restricted.

Christine Lagarde: IMFC Statement Speech by Ms Christine Lagarde, President of the European Central Bank, at the forty-fourth meeting of the International Monetary and Financial Committee (IMFC), IMF Annual Meetings, 14 October 2021. * * * Global economic activity has continued to recover since our previous meeting in April this year, thanks to further progress in vaccination campaigns and supportive economic policies. However, the pace of the recovery remains uneven across sectors and countries, and the spread of the more contagious Delta variant of the coronavirus (COVID-19), coupled with supply bottlenecks, is casting a shadow over the near-term growth prospects for the global economy. The main challenge for policymakers continues to be steering the economy safely out of the crisis. It remains crucial that policy support is not withdrawn prematurely. On the fiscal side, support measures should be increasingly targeted. And on the monetary side, clear communication by major central banks is essential, also in view of the recent inflation developments. The policy mix should be accompanied by well-tailored structural reforms to enhance long-term growth and minimise scarring effects from the pandemic, along with action to accelerate the green and digital transitions. Euro area developments and outlook The rebound phase of the euro area economy is increasingly advanced, despite supply bottlenecks and continuing uncertainty about the pandemic.
These are a review of the Bank’s approach to setting MREL4 and a review of the UK’s leverage ratio framework.5 Both are relevant to mid-tier banks and building societies which might not be eligible for the simpler regime. 3 Zahid Amadxarif, James Brookes, Nicola Garbarino, Rajan Patel and Eryk Walczak (2019), ‘The language of rules: textual complexity in banking reforms’, Bank of England Staff Working Paper No. 834. Quantification of rules and technical standards refers to number of words. 4 See Bank of England Discussion Paper ‘The Bank of England’s review of its approach to setting a minimum requirement for own funds and eligible liabilities (MREL)’, December 2020. 5 See Bank of England Financial Stability Report, December 2019 and HM Treasury/Bank of England/PRA/Financial Conduct Authority, ‘Regulatory Initiatives Grid’, September 2020. 5  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  5  Returning now to the simpler regime and moving on to my second term, ‘strong’. Here I want to repeat Sam’s very clear message that we have absolutely no appetite to weaken standards. What that means is that we do not think that we have made any part of the banking system too safe. Nor do we think that a simpler regime should lead to any change in the level of resilience of the firms we supervise. What we aim at is a simpler regime which delivers the same level of resilience for small firms in a more efficient way. Which brings me to ‘simple’.

In this respect, it is also pertinent to understand that Exter made his recommendations at a time when the whole world had embraced Keynesian type of deficit financing as the sole remedy for unemployment problem and central banking with power to lend to the government or the economy was the rule of the day. Hence, as he had explained in the Exter Report, he had to adopt a pragmatic approach for the issue. He, nevertheless, proposed checks, balances and limitations for the central bank’s credit operations with the government or with the economy. The following are the provisions and limitations he proposed. 1. Provisions have been made in the Monetary Law Act for the Central Bank to grant provisional advances to the government to facilitate the latter to meet any liquidity shortages in its cash flow. Exter has been criticized for making this provision in the Act, because it amounts to printing new money and making it available to the government to finance its operations. Such provisional advances create reserve money and work opposite to the price stability objective of the Bank. Any neutralization of the adverse effect of such advances has to be done by the Bank through its open market operations. But Exter did not propose to offer an open cheque to the government and limited such advances to 10 percent of the estimated government revenue at any time and made them repayable within a period of six months.
William C Dudley: Brief remarks about the centennial “The Fed at 100” Exhibit Introductory remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Museum of American Finance, New York City, 25 September 2013. *  *  *  Thank you all for being here to commemorate the opening of the centennial exhibit for the Federal Reserve System and the Federal Reserve Bank of New York at the Museum of American Finance, just a few blocks from the New York Fed’s landmark head office at 33 Liberty Street. I would like to say thank you to our friends at the Museum for their work and interest in the Fed and for supporting us in organizing this event. Before making some brief remarks about the centennial, I would also like to acknowledge some of the people in attendance tonight. We have two former New York Fed presidents here this evening: Jerry Corrigan and Bill McDonough. I met Jerry, the seventh president of the Bank, when I was still wet behind the ears. I was just out of graduate school at the Board of Governors in Washington, but Jerry was already a force to be reckoned with and a part of Paul Volcker’s inner circle. Jerry’s tenure as president had many memorable moments, including the October 1987 stock market “break”.

Benoît Cœuré: Interview with Politico Interview with Mr Benoît Cœuré, Member of the Executive Board of the European Central Bank, and Politico, conducted by Mr Pierre Briançon on 23 March 2016, and published on 30 March 2016. *  *  *  The last Governing Council meeting on 10 March seemed to be marked by some ambiguity on negative interest rates. On the one hand, the message was that rates wouldn’t get much lower. On the other, there was the signal that there could be exceptions… The question we are always trying to address is how to design our policy so that it is effective in the situation we face at a given moment. The package announced on 10 March was very potent, both in intensity and in sheer volume. Negative interest rates are not our main instrument, they just support our overall policy. And looking ahead, we’re not short of instruments – our choice is quite large. We will be able to deal with adverse situations if necessary. You indicated that the ECB wasn’t deaf to the banking sector’s concerns about the impact of negative rates on banks’ profitability. Banks’ profitability has improved when you look at the global overall impact of our monetary policy, that is, stronger credit demand and lower risk in the economy. And, as a matter of fact, the interest margin of banks has gone up, not down. Of course, the impact is different depending on banks’ business models and on how negative the rates are.
We believe that countries should adopt the options and approaches that are most appropriate for the state of their markets, their banking systems, and their supervisory structures. Basel II is not a “one size fits all” framework. Supervisors can adopt the framework on an evolutionary basis and use elements of national discretion to adapt it to their needs. For any country that is considering adopting Basel II but may not yet be ready, I like to suggest a three-stage approach towards building a foundation for the new framework: (1) strengthening the supervisory infrastructure; (2) introducing or reinforcing the three pillars; and then (3) making the transition from the 1988 Accord to Basel II. The first stage is strengthening the supervisory infrastructure. Basel II is not intended simply to ensure compliance with a new set of capital rules. Rather, it is intended to enhance the quality of risk management and supervision. One of the things that I strongly encourage for all countries is a review of implementation of the Basel Committee’s Core Principles for Effective Banking Supervision. These principles are key to laying a successful supervisory foundation. Likewise, sound accounting and provisioning standards are critical to ensuring that the capital ratios, however calculated, meaningfully reflect the bank’s ability to absorb losses. The second stage, then, is to consider how the second and third pillars of the new framework can be implemented. Supervisors do not need to wait for the formal adoption of Basel II to start introducing or using the principles of the three pillars.

For many firms, including Italian imprenditori, their market naturally expanded from their domestic market to the whole of the euro area. According to empirical studies, the euro has thus led to a 5 to 15% increase in trade between Member States. An internationally recognised currency The economic size of the euro area and the stability of its currency allow the euro to play an international role. Before the euro, in 1995, only the Deutsche Mark was an international reserve 2/6  BIS central bankers' speeches  currency, with a share of 15% of global reserves. Today, our shared currency accounts for 20% of international reserves, in second place behind the dollar. An internationally recognised currency generates economic gains: the financial markets are more attractive for foreign investors, more liquid, and therefore more efficient. But it also carries a political weight: I know that when Mario Draghi speaks at the G7 or at the G20, the whole world listens to Europe attentively. In the global financial arena, which has become turbulent, this union is our greatest chance; none of our countries would have such clout in insolation. Our sovereignty relies necessarily on European sovereignty. * * * The euro makes us more robust, and gives us more confidence in our currency: this is a considerable asset amidst so much uncertainty. The euro has naturally also provided us with a strong symbol of unity among European nations.
“Education and Lifetime Patterns of Unemployment,” Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S117–31, October. Phillips A. W.,1958, “The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957”, Economica. Pissarides, C., 2000, “Equilibrium Unemployment Theory”, Massachusetts Institute of Technology, 2nd edition Slacalek, J., 2005, “Productivity and the Natural Rate of Unemployment”, Department of Macro Analysis and Forecasting, DIW Berlin Solon, G, R. Barsky, and J.Parker, 1995, “Measuring the Cyclicality of Real Wages: How Important is Composition Bias?” Q. J. E. 109 (1994), pp. 3–25. Staiger, D., J. H. Stock and M. W. Watson, 2001, “Prices, Wages and the U.S. NAIRU in the 1990s”, NBER Working Paper no. 8320. 8  BIS central bankers’ speeches  Chart 1: Large flows into and out of  Chart 2: Growth of average wages weak in  employment  2013, 2014 despite low unemployment  Source: Labour Force Survey and own calculations Source: ONS, Bank of England, NIESR and Hills, Thomas, Dimsdale (2010) Note: AEI until 2010 and AWE since; inflation expectations as implied by indexed gilt market; 2014 diamond is for H1.

In other words, such shocks tend to put upward pressure on the NAIRU (at least initially, they move you rightwards along the Phillips curve in Chart 2, not downwards4). Yet, for much of the past two years, pay growth was weak even as unemployment declined sharply. I commented on the striking flexibility of real wages in a speech last summer, from which Chart 2 is taken. Suppose, however, that the drop in productivity has had nothing to do with existing jobs but instead reflects the skew in the creation of new jobs towards relatively less productive, less well-paid roles. To that extent, there’s no real-wage resistance, among existing employees, to overcome, and the arithmetic impacts on average pay and average productivity are necessarily immediate and coincident. This would also help to explain why pay surveys, which track wages of the median employee (rather than the average), appeared to over-predict wage growth in 2013 and 2014 (Chart 6): they failed to take account of changes in the mix of employment. You can see from Chart 6 that when the compositional effects were positive, during the recession, the surveys undermeasured AWE growth. Finally, these shifts can also shed light on the most recent trends in the aggregate data. The latest estimates show that the compositional effects have risen during the first half of this year – the skew towards lower-paid jobs has diminished.
In fact the scope for SONIA adoption in markets beyond derivatives is a key issue we want to explore – and will be discussed in the panel sessions later today. We do not underestimate the complexity of reducing the financial system’s Libor dependency. We are at the beginning of the process, and at this early stage the challenges are not all clearly in focus. That is why the engagement, help and support of the wider community of users of sterling interest rate benchmarks – issuers, investors, banks, as well as dealers – will be essential. The Working Group needs your help to identify the impediments to transition as you see them – and, equally, to identify where there are opportunities. That is why you are here today. The way ahead So what happens now? I have argued that, over time, we need to see a broad transition away from sterling Libor towards SONIA. That will require changes in the behaviour of firms that carry some cost. But, where SONIA better matches the risks firms are hedging, there will be long-term benefits. Moreover the financial system will be safer. The Bank has already laid the groundwork for transition by reforming SONIA and creating the risk-free rate working group. We will continue to use our convening power to support the Working Group in driving adoption of SONIA. We will help market participants to understand changes in the environment and how they might be affected.

These novelties will be offered to the public as a modest contribution to the formation of a modern and dignified state for the Albanian nation. At present, fulfilling these obligations has become a more difficult task due to negative effects arising from the global economic crisis. Most evidently, labour markets, capital markets and economic activity remain under the effect of contraction of consumption and investments in the private sector. The anaemic reaction of the markets has placed central banks in a difficult position, a solution without any choice, i.e. intervene in the economy with all the instruments to address current emergencies while the other factors are forced to contract in favour of the long-term stability of public and private balances. In this situation, central banks are obliged to undertake a series of extreme and qualitatively-different measures, which have been never tested before and exceed all imaginary boundaries of the monetary policy. Actually, politicians are obliged to cope with debt crisis through an extreme fiscal policy aiming at short-term balancing and long-term stability of the fiscal policy. The focus and emphasis of the economic policy remains long-term rebalancing by cutting on expenses. An important part of these measures is very focused on the short-term problematic, hence risking to disregard the undesired effects in the long term. Under the pressure from social costs, the philosophy of current policies is to overcome the situation and maintain social peace and macroeconomic stability at the expense of sovereignty.
In particular, FSTEP will offer scholarships to eligible top graduates from various universities to participate in its one-year fast-track training programme. I wish to congratulate FSTEP for the successful effort in designing a new syllabus and it continuous effort to improve the FSTEP programmes remain contemporary and relevant agreed to by all parties within the financial services industry. More importantly, it is my hope that FSTEP will continue to produce the quality of graduates that will meet the needs of the industry. I hope that all of you will have a fruitful discussion and dialogue. On this note, I declare open the event “FSTEP: Syllabus Enhancement”. 2  BIS Review 100/2010

For what concerns the ECB and the entire Eurosystem team, with Banco de España as a very active member of the team, our 330 million fellow citizens in the euro area ask that we continue to deliver price stability over the medium term, in line with our definition – less than 2% but close to 2%. Our determination to anchor solidly inflation expectations has served us well since the introduction of the euro, including in the recent period of crisis, by helping to avoid the materialisation of the risk of deflation. 6  BIS Review 150/2009  The euro area can count on us to continue to be a solid anchor of stability and confidence in these challenging times. Thank you for your attention. BIS Review 150/2009  7