samchain/econo-pairs-v1 huggingface dataset:
Reasons behind this behaviour are understandable and related to the fact that the majority of the society acquires information circumstantially, hoping that the actual failure becomes a lesson for the future. One way to eradicate circumstantial learning is the introduction of financial reading at an early stage of education. In this view, I would proudly say that, the Bank of Albania has provided an outstanding contribution. Allow me to briefly make an résumé of our work in this aspect. The first strategic station of financial education provided by the Bank of Albania was needs assessment and identification of training priorities. From this point of view, we assessed that it was indispensable to open the Bank “de facto” to the public. More frequent communications with the market and its important participants, as well as periodic explanations of monetary policy decision-making and risks balance related to inflation and financial stability, are some initiatives that we consider as a very effective education process. I am proud to say that now we have:   A public opinion that builds up expectation as regards our decision-making;    A media sector, which has admirably enhanced understanding, interpretation and expectations related to our decision-making;    A banking sector, which reads accurately and responds with high flexibility to the direction oriented by us;    A qualified public critique, where Bank of Albania finds a mirror of alternative opinions on its adopted decisions and practices.

In 1911, the renowned Austrian economist Joseph Schumpeter said: “...that the structure of modern industry could not be erected without finance, that it makes the individual to a certain extent independent of inherited possessions, that talent in economic life ‘rides to success on its debts’ even the most conservative orthodoxy of the theorists cannot well deny.” If you asked me why is financial education important, I would say it in these words: because it contributes to Albanians’ financial welfare. The more literate we are financially, the more capable we are to make decisions that contribute to our improved welfare. This is true for everyone, regardless of who we are or where we come from. As Friedman, the Nobel prize winner, says: “Economic freedom is an essential condition for political freedom”. Our exercising rights that result from economic freedom would be unavailing in absence of financial literacy and equality in the marketplace. This implies not only the same information at the same time, but also the capacity to use this information. Finances create an added value not only for the rich, but also for the entire society. It is necessary to create equal access for all citizens. Equal access to finances and equality before the law are the foundations of modern market economy. Finance and financial education walk side by side. While literacy may turn a poor man into a rich man, illiteracy, on the other hand, may conduct a rich man into misery. Finances are dangerous when you are not financially literate enough.
An important principle established by Exter has been that the principal use of OMO was to offset the effects of surpluses and deficits in the balance of payments. Since the surpluses of BOP raises money supply and deficits would do the opposite, it is necessary to counter their effects by an equivalent change in the domestic assets of the Bank. Hence, any OMO to siphon off the additional liquidity created by the Bank by increasing its domestic assets first, i.e., by investing in primary market Treasury bills, is contrary to the wisdom expressed by Exter in his report. Can Exter be faulted for permitting the Central Bank to lend to the government? Though it is completely contrary to the principles of responsible central banking advocated by him elsewhere in the Report, he should be viewed as a pragmatic person. He argued that “if the Government were determined, even in the face of opposition by the Monetary Board to make excessive use of Central Bank credit, legal limitations could be relaxed” by the government. In such a situation, “the Board being a Government agency would have no  BIS Review 92/2007  5  alternative but to comply”. Thus, legal provisions are not of any use if governments do not function responsibly and the civil society is weak in resisting such dangerous moves by the governments.

We at the Central Bank welcome innovations such as empowerment loans but urge caution with products such as Islamic Loans since an innovation of this nature needs close collaboration with the regulatory authority. 7. Closing remarks  In closing, Mr Managing Director, having celebrated your 10th anniversary I urge you not sit on your laurels. May this be a time of serious reflection as you chart your path towards celebrating your next 10 years and beyond! I look forward to Investrust Bank Plc being represented in other countries as well. Regarding the strategic planning session that we are gathered here for, I wish to commend you, Mr Managing Director for coming up with this initiative. Every organization needs to plan its future actions and activities. This is a process that must be embraced by all top management. Although only senior managers are represented here today it is my expectation that what ever you will be discussing will have benefited from lower levels of your bank. For your plan to succeed it is important that all senior managers embrace the plan whole heartedly. With these remarks, I declare the Strategic Planning Conference of Investrust Bank Plc officially open. I thank you all. 2  BIS Review 36/2007
The changes in the Swedish credit markets at the end of the 1980s and EU membership in 1995 made it easier for Swedish banks to expand onto an international market than it had been before. With hindsight, we can observe that  2 [12]  this took place at the same time as the existing bank regulation was not always able to adapt to new situations sufficiently fast. Financial crises are costly and affect us all Reducing the risk of financial crises is something the Basel Committee has worked on from the start. This work is important to all of us, as financial crises lead to substantial costs for society and often to permanent falls in GDP and employment. All too often it takes a very long time to recover from such crises. Even today, almost 10 years after the most recent financial crisis broke out, many countries are struggling with low growth, high unemployment and excessively low inflation. Looking at the historical development of GDP in Sweden, we see two clear falls: during the financial crisis in the early 1990s and during the most recent global financial crisis. The size of the fall after the most recent financial crisis corresponds to the total expenditure of all of Sweden’s county councils during one year. 1 Having said this, the conclusion is of course that the work on avoiding financial crises in the future is very important, not least to safeguard essential functions in society such as care and welfare, which we often take for granted.

2  BIS central bankers’ speeches  And they are long lived – probably on average around 15 years from one peak to the next.4 In contrast, business cycles are typically relatively short-lived affairs: for instance, the average duration of business cycles in the UK and US economy in the post-war period has been estimated at 5 ½ years.5 However, though financial cycles build up much more slowly than business cycles, the amplitude – the swings between the peaks and troughs – is greater. In the UK the peak-totrough variation in credit has been around 40 percentage points on average for financial cycles, whereas the average peak to trough change in GDP in the business cycle has been around 10 percentage points. Financial cycles do not always mirror or drive business cycles. To a headline writer, the fact that credit grew twice as fast as GDP for 10 years before 2007 and that household debt rose from levels of around 100% of household income in 1997 to 155% shouts “unsustainable, debt financed growth”. But over those 10 years, the economy was not obviously growing at abovenormal rates and inflation remained subdued, albeit aided perhaps by the favourable terms of trade shock that followed China’s admission to the World Trade Organisation in 2001.6 While the increase in debt may have had some impact on growth, the UK certainly did not appear to enjoy a credit financed boom.
Figures for 2010 and 2011 as well as the March forecast, with the national accounts with 2008 as the base year, using chained indexes. Sources: Central Bank of Chile based on a sample of investment banks, Consensus Forecasts, the IMF and statistics bureaus of respective country or region. Table 2 Economic growth and current account (*) (annual change, percent) 2012 (f) Sep.11 Report  GDP  Dec.11 Report  6.25-6.75  2013 (f) Sep.11 Report  Mar.12 Report  6.2  6.0  Dec.11 Report  4.25-5.25  Mar.12 Report  3.75-4.75  4.0-5.0  Domestic demand  9.1  9.5  9.4  4.5  3.7  5.3  Domestic demand (w/o inventory change)  9.7  10.2  10.3  5.4  4.8  5.8  Gross fixed capital formation  14.4  16.9  17.6  7.1  5.8  8.9  Total consumption  8.2  8.1  7.9  4.9  4.5  4.8  Goods and services exports  6.5  7.4  4.6  5.0  3.7  3.8  Goods and services imports  12.0  14.3  14.4  4.6  3.0  5.9  Current account (% of GDP)  -1.0  -1.5  -1.3  -2.1  -3.3  -3.4  (f) Forecast. (*) September and December forecasts were done with national accounts with 2003 as the base year. Figures for 2010 and 2011 as well as the March forecast, with the national accounts with 2008 as the base year, using chained indexes.

It also raises projections for the copper price to averages of $ and $ per pound this year and next. This translates into better terms of trade than previously thought (table 1). Greater appetite for risk has also fostered a resumption of capital inflows to emerging economies. Facing reduced tensions, many emerging economies’ central banks have suspended their processes of enhanced monetary stimulus they began in the second half of 2011. 2  BIS central bankers’ speeches  In Chile, the external financial turbulence has had limited impact, and a number of the signs of spill-over that were perceived in late 2011 have reverted, at least partially. Money market frictions have eased. Stock markets and the exchange rate have returned to values from before the resurgence of international financial tensions, although corporate risk premiums are now higher than they were in mid-2011. At the statistical cutoff date of this Report, the peso had appreciated nearly 6% against the dollar, since the closing of December’s Report. Considering the current level of the nominal exchange rate and the parities prevailing at the closure of this Report, the real exchange rate (RER) is estimated to be within the range consistent with its long-term fundamentals. On the other hand, domestic output and demand have grown faster than forecast in December. After losing strength in the third quarter of 2011 – which was the information at hand at the closing of the December Report – output figures of the fourth quarter accelerated.
Speech  The digital euro and the evolution of the financial system Introductory statement by Fabio Panetta, Member of the Executive Board of the ECB, at the Committee on Economic and Monetary Affairs of the European Parliament Brussels, 15 June 2022 I am pleased to join you here today to discuss the progress we have made in our digital euro project. A digital euro would enable Europeans to use public money for digital payments throughout the euro area – just like they can use cash for physical payments. Bringing central bank money into the digital era is a logical step as payments become increasingly digitalised. And this is critical for two main reasons. First, we need to preserve the role of public money as the anchor of the payments system in order to ensure the smooth coexistence, the convertibility and the complementarity of the various forms that money takes. A strong anchor is needed to protect the singleness of money, monetary sovereignty and the integrity of the financial system. Second, a digital euro would contribute to our strategic autonomy and economic efficiency by offering a European means of payment that could be used for any digital payment, would meet Europe’s societal objectives and would be based on a European infrastructure. We will design the digital euro in a way that makes it attractive to users, who would like to use it to pay anywhere.

A Bank of Zambia review of interest rates determination in 2003, nonetheless, showed that the key determinants of commercial banks’ interest rates, particularly the lending rate, were the yield rates on Government securities, level of statutory reserve requirements, inflation, weak policy credibility and high default risks on loans obtained. To enhance the role of the market in the determination of exchange rates, the Interbank Foreign Exchange Market (IFEM) trading system was introduced in July 2003. The entrenchment of the IFEM trading system has been characterised by increased interbank foreign exchange liquidity flows, particularly from mineral exporters. The financial sector reforms were aimed at improving the efficiency and intermediation of the banking system and also at enhancing competition amongst the players. The reforms entailed opening up entry of participants into the banking sector. With the liberalisation of the financial sector, several bank and non-bank financial institutions were established. The financial sector has expanded remarkably over time and the services provided have been improved. •  The number of commercial banks has more than doubled to 13 from 4 banks prior to 1990. Currently, the banking system is made up of the Bank of Zambia, which is the central bank, and 13 commercial banks, with a branch network of 159 as at end-December 2005 compared to 123 in 1990. •  Commercial banks have improved the range of products offered to customers, in line with global innovations. These include Automated Teller Machines (ATMs), foreign exchange accounts, Visa, mortgages, and leasing services.
BIS central bankers’ speeches  13  Figure 13 Retail sales and new car sales (1) (2) (index, 2003=100)  250  Employment and unemployment (1) (index, centered on mean of period 19902011)  225  300  200  250  175  200  150  150  125  100  100  50  20.00  20  0.00  0  -20.00  -20  -40.00  -40  06 07 08 09 10 11 Durables Non-durables  40  350 40.00  New cars  90 93 96 99 02 05 08 11 Employment  Unemployment  (1) Seasonally-adjusted series. (2) Sold during moving quarter. Sources: National Automobile Association of Chile, Central Bank of Chile, National Chamber of Commerce, and Ricaurte, M. 2011, “Indicadores de Mercado Laboral para la Comparación de las Crisis Asiática y Financiera Internacional”. Preliminary document, Central Bank of Chile, June. Table 3 Economic growth and current account (annual change, percent) 2009  2010  GDP National income  -1.7 -1.9  5.2 6.25-6.75 4.25-5.25 15.7 6.6 4.2  Domestic demand Domestic demand (w/o inventory change) Gross fixed capital formation Total consumption Goods and services exports Goods and services imports  -5.9 -2.9 -15.9 1.9 -6.4 -14.6  16.4 11.5 18.8 9.3 1.9 29.5  9.1 9.7 14.4 8.2 6.5 12.0  4.5 5.4 7.1 4.9 5.0 4.6  1.6  1.9  -1.0  -2.1  Current account (% of GDP)  2011 (f)  2012 (f)  (f) Forecast. Source: Central Bank of Chile.

Banks should therefore maintain these surpluses in future, or should establish and increase them in line with their risk profile. As before, the SNB will regularly assess whether the countercyclical capital buffer needs to be adjusted due to mortgage and real estate market developments. If the momentum in these markets picks up again, additional measures to limit the affordability risk in mortgage lending should be taken into consideration. 2  BIS central bankers’ speeches
If forceful measures are not taken to deal with the financial crisis and maintain financial stability, there is a risk of the crisis also having major effects on inflation and growth. The fall in output and employment can then be both deep and prolonged and that in turn can worsen the financial crisis. An efficient fixed-income market is a prerequisite for an effective monetary policy In other words, the monetary policy machinery I have described consists of two components. The first thing is to ensure that the repo rate does in fact affect the overnight market. Effects on this shortest rate must then spread to longer rates that are more important for economic activity. An effective monetary policy steering system is not enough by itself. We also need a fixed-income market that functions properly. So what are the fixed-income market’s functions? The fixed-income market caters both for those who need funds for their operations and for those with funds they need to invest for a certain period of time. As investment in the market is not risk-free, one of the market’s primary tasks is to price risk correctly. That in turn leads to an optimal distribution of risks between the markets’ participants. In this way the market contributes to an efficient distribution of economic resources. What a central bank requires of the fixed-income market is therefore not all that different from what society in general requires.

Memorandums of Understandings or information-sharing protocols would then be used to ensure the free sharing of information between agencies. The analytical skills and tools required for macroprudential policy are likely to draw on those used for macroeconomic analysis and, to a lesser degree, microprudential analysis. But the  7  This argument is developed by Martin Cihák in a speech “Price stability, financial stability and central bank independence”, 38th Economics Conference of the Oesterreichische Nationalbank, 2010. A number of case studies illustrating how inadequate independence arrangements for financial sector regulators and supervisors have contributed to the emergence and scale of financial crises are presented by Marc Quinton and Michael W. Taylor in “Regulatory and supervisory independence and financial stability” IMF Working Paper, WP/0246, 2002. 6  BIS central bankers’ speeches  macroprudential agency will need to build new analytical techniques. Before the crisis, many central banks had already begun to develop the type of system analysis that will be required for macroprudential supervision (for example, in the assessment of interdependencies and systemic risks included in financial stability reports) – but the analytical techniques remain in their infancy. Control over a sufficient set of tools As well as the information and knowledge necessary for effective analysis, the macroprudential agency must have access to suitable instruments in order to achieve its mandate. Otherwise there will be unreasonable expectations of what the macroprudential agency can achieve, as it may be unable to address the system-wide risks that it identifies.
It should also be remembered that households still have the possibility of borrowing large amounts to finance housing purchases. I consider that it is therefore somewhat misleading to claim that certain groups have been completely ‘excluded’ from the housing market due to the amortisation requirements. As far as newly built homes go, these are exempt from the amortisation requirements and it is up to individual banks to decide whether their customer’s credit  23 European Commission (2019). 24  Finansinspektionen (2019). 25 See also Cunliffe (2019) for similar results in the United Kingdom. 8 [13]  rating makes additional amortisation necessary. Consequently, the amortisation requirements, at present, should benefit newly built tenant-owned apartments. The aim of the macroprudential policy measures is to strengthen households’ long-term resilience in two ways: by ensuring that they do not borrow excessive amounts in relation to their incomes or the value of their homes, and to encourage households to create buffers by gradually amortising their loans. High stress rates in the calculations made by the banks to estimate households’ ability to repay loans are, in turn, aimed at ensuring that the households will be able to cope with a significantly higher level of interest rates than prevails at present. 26 If a household fails the credit assessment, it is conceivable that the household will have to increase the proportion of capital it invests, borrow less and/or purchase a cheaper home.

16 It becomes difficult to attract labour to the major cities when it is impossible to find a home for a reasonable price. 17 I am concerned about this social development, as it is creating problems for economic growth and economic distribution, and is increasing the likelihood of financial crises. It is of great importance that reforms are carried out to slow this development down. Measures affecting all mortgage borrowers are absent Like the Riksbank, Finansinspektionen has drawn attention to households’ high indebtedness and has taken measures to reduce the risks and increase resilience among households. This has also contributed towards slowing down price growth for housing, although this was not the primary purpose of the measures. 18 However, these macroprudential policy measures, such as a loan-to-value limit and amortisation requirements, are only aimed at new borrowers. Consequently, they mainly affect the conditions for the people I refer to as outsiders and, to some extent, could make it more difficult for them to enter the housing market. 19 On the other hand, there are few measures affecting the stock of already existing loans, which means that the new rules affect insiders and outsiders differently. In a study, the Riksbank has demonstrated that an amortisation requirement aimed at all borrowers could reduce household debt over the long run and that this would also mean a redistribution of resources from lenders to borrowers.