samchain/econo-pairs-v1 huggingface dataset:
We must preserve this. I think there are two priorities for international co-operation in the wake of Covid-19: first, keeping supply chains open; second, strengthening digital connectivity. Keeping Supply Chains Open Let me start with supply chains – of trade, transportation, and logistics. The consensus in favour of globalisation was already shifting before the virus hit, with growing concerns that the fruits of free trade and open markets were not shared equitably. Now, with Covid-19, doubts about the pace and scale of global economic integration have intensified. Amid the lockdowns and disruptions in global supply chains, countries are realising how dependent they are on these networks – and hence vulnerable. There is naturally a temptation to shorten supply chains, or bring onshore the production of essential goods, or impose export controls to conserve supplies for 1/4  BIS central bankers' speeches  domestic use. There will likely be a shift in supply chains, with a rebalancing from efficiency to resilience. This is not necessarily bad, knowing what we now know about our vulnerabilities. Building resilience is not about retreating behind our respective borders. Doing so will only diminish our collective resilience to shocks, not enhance it. Resilience is not achieved through insulation or in-shoring. If every country were to try to grab what it could, we will all end up with less. The more effective way to build resilience in a post-Covid world is through greater diversification of supplies and building redundancies in global value chains.

Timothy F Geithner: The Fed Challenge Remarks by Mr Timothy F Geithner, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the National Academy Foundation’s 2004 Dinner, New York, 8 December 2004. *  *  *  Thank you, Gene, for that generous introduction. It is a pleasure to be here tonight to celebrate the National Academy Foundation and all of your contributions to this important mission. I am very pleased to accept this award on behalf of the Federal Reserve Bank of New York. I want to compliment Sandy Weill on his commitment to education and the achievements of the NAF. And I want to recognize three important people from the New York Fed who are responsible for the Fed Challenge: Steve Malin, Lloyd Bromberg and Bob Diamant. Among these and other contributions to public service, Sandy serves as a member of the board of directors of the New York Fed. I want to tell you his reaction to a presentation early this year on our work in financial education. Sandy listened carefully to the description of the full array of New York Fed programs. Then, in his typically tentative and understated way, with the same soft approach he brought to building one of the most formidable financial institutions in the world, asked why the Bank didn’t limit its role in education to simply supporting the National Academy Foundation.
It is unlikely that the regime would have been adopted without these developments and so as and when the MPC starts to “normalise” the level of Bank Rate, the Bank is likely to review whether to retain the current “floor” system indefinitely or whether it should move to a different medium-term operating framework. One obvious option would be to return to the framework used before the introduction of QE – which was known as “reserves averaging”. That operating regime was introduced after a careful review of alternative regimes open to the Bank in the mid-2000s. But the world has changed markedly since that review was undertaken. Banks have structurally higher demand for central bank reserves than they did before the crisis, reflecting in part liquidity regulations, and as I noted earlier, a far wider range of institutions can directly access our balance sheet than was the case a decade ago. Moreover, the structure of money markets has evolved considerably over this period as banks have responded to lessons learned during the crisis and the impact of post-crisis regulation. These changes have been sufficiently profound that the Bank no longer maintains a presumption that it will return to a version of reserves averaging that existed prior to 2009. 2  See 3.1-3.4 of the September 2014 MMLG Minutes http://www.bankofengland.co.uk/markets/Documents/money/mmlgsep14.pdf.

BIS central bankers’ speeches  3  While such a decision remains possible, the choice of medium-term operating framework is now a genuinely open question and is likely to be become a key issue for the Bank as it considers the future design of the SMF. Whatever decision the Bank makes about its medium-term monetary policy framework it is likely that the floor system will be retained for some time after Bank Rate is increased from its current level. Conclusion The SMF defines how the Bank interacts with markets, when implementing monetary policy and providing liquidity insurance. It is important that we are open and accountable for the operation of the SMF. The MMLC itself and the new SMF annual review process help us achieve that aim. In recent years we have transformed the SMF, and we believe for the better. But reform of the SMF is an on-going process. As my remarks today have made clear, that process is incomplete: further changes to support liquidity insurance are in the pipeline and the Bank needs to keep under review its tools for implementing monetary policy. The Bank is both open for business and open to outside views, and we always welcome feedback from MMLC members or other interested parties on any aspect of the SMF, including at the forthcoming Open Forum. 4  BIS central bankers’ speeches
Naturally, the Bank uses data supplied by other agencies as well. It also acquires information through other channels, such as both informal and formal meetings. For this reason it is simply wrong to claim that the Bank's resistance to easing its monetary stance is based on outdated information. BIS Review 27/2001  3  The Central Bank has declared that it will maintain tight money until unequivocal signs of a cooling in the economy begin to appear. Such indications have been emerging recently. For example, total business turnover has decreased. Retail turnover has contracted sharply and there has also been a decrease on the wholesale side. Turnover in manufacturing appears to be stable. However, turnover is still rising rapidly in the construction industry and at a considerable rate in the service sector as well. Although credit growth is still quite substantial, it has slowed down. In the Central Bank's opinion, the economy has now passed the most difficult phase of overheating and the time is ripe to ease the monetary stance somewhat, among other things to avoid a hard landing. The Board of Governors therefore decided today to reduce the rate of interest on its repurchase agreements with credit institutions by 0.5 percentage points. This change has been made in light of next year's lower inflation scenario alongside the slowdown in economic activity. Inflation prospects are within the reference limits stated in the joint declaration on inflation target issued today by the Government and Central Bank.

Great efforts are being made, involving significant sacrifices from broad sections of society; but they will eventually bear fruit and help to absorb the mass unemployment that is currently Spain’s most serious problem. To overcome the deterioration in solvency stemming from the economic crisis and the end of the unsustainable growth in construction and related lending activity, part of the banking sector has required an extensive clean-up, restructuring and recapitalisation. The main thrust of this process is already well-advanced, and this is having positive effects on the ability of our banks to raise funds abroad. Its completion will be a fundamental step in the recovery of confidence, activity and employment. We can affirm that the tensions experienced by the Spanish economy over the last 18 months have begun to abate, as a result of greater confidence in both the ability of the euro area to reform and in the adjustment drive of our economic policy. The deep-seated change in our trade balance, which will be manifest in a significant balance of payments  4  BIS central bankers’ speeches  surplus in 2013, is the prime example of the adjustment under way in the Spanish economy and of the competitiveness gains that are materialising. To conclude: you ask me what my prognosis is (not surprisingly, given who you are). I think you will understand if I reply that I still reserve my judgment. But, it was significantly worse a few months ago.
The process of monetary policy normalisation has translated into a significant increase in market interest rates. Since early 2022 the 12-month EURIBOR has climbed by more than 290 bp, while the 10-year overnight index swap (OIS) rate (typically used as the risk-free benchmark interest rate) has risen by 240 bp. These increases have begun to pass through to the cost of bank financing for firms and households, which will help to contain inflationary pressures. In Spain, long-term government bond yields have risen by 2.5 pp this year, and the risk premium relative to the German benchmark has increased by 35 bp, although it has remained stable since the TPI was approved. Meanwhile, the average cost of long-term corporate debt issuance has also risen sharply (over 220 bp) and, as with public debt, has reached levels not seen since 2014. Moreover, the IBEX 35 has fallen by nearly 11% since early 2022. The impact on bank lending conditions has been more subdued. The average cost of new loans rose up to July (latest available figure), albeit moderately. Broadly speaking, the passthrough from market interest rates to new loans occurs with a certain lag, but so far on this occasion, it is proving slower than in recent episodes.15 The contained cost of some bank liabilities, such as private-sector deposits, may be contributing to this difference. Nevertheless, the increase is expected to fully pass through in the coming months.

Thus, this episode has shown that structural policies that foster the integration and interconnection of European markets – in particular energy markets – and strengthen the 12  single market will not only generate greater resilience to shocks, but also drive competitiveness. Joint funding arrangements should be established to safeguard this common effort and avoid any excessive or highly unequal impact on national public finances. Common funding arrangements would enable financing for large-scale programmes based on shared quality standards and provide for a uniform approach for assessing programme execution. Headway must also be made in the expansion of the public and private risk-sharing arrangements in the EU. The euro area needs a permanent macroeconomic stabilisation mechanism – with revenue-raising and borrowing capacity – to complement the single monetary policy. It is also imperative that the banking union be completed with the establishment of a European deposit guarantee scheme. Lastly, we must press forward with constructing a capital markets union. 4. Concluding remarks In short, with war on European soil and a sharp rise in geopolitical tensions, the challenges we face are very complex. These developments, together with the additional series of shocks on an unprecedented scale from the pandemic, have pushed inflation to persistently very high levels both in Spain and in the euro area as a whole. Given this situation, monetary policy needs to be steered to ensuring that the direct effects of these shocks are not included in the formation processes for other prices and wages.
  How has the last global financial and economical crisis impacted the Albanian economy, the regional economy and more priority the convergence process?   Can we afford it? All these are very important issues on which I think we should stop and study in deep. They are subject of research work, whose findings shall light the orientation of economic and structural reforms. Given that, the Bank of Albania has joint the forces with the University of Oxford to carry out a scientific research dedicated to the finding of the answers for the above questions and other similar. Answers to these fundamental issues benefit not only Albania and its regional partners, but also the EU and its political and economical structures. I am confident that the European Commission may exploit the outcomes of these scientific researches to build up new anchors, as economic and political incentives in order to increase the efficiency of all regional sources. These studies shall help us to better see that: What and how should be done to return EU, its Pre-adhering Economic Programs and Fiscal Economic Programs into stronger external anchors for the national and regional policies. However, it is important to realise that international restrictions can not support the long-term sustainable prosperity in absence of internal anchors. BIS Review 117/2010  3  Obligations that may be imposed from Brussels or from other international organisations are indispensable as long the internal anchors are fragile.

Eddie Yue: Investment in infrastructure is crucial to Asia’s growth Statement by Mr Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority and Head of the Delegation of Hong Kong, for the 46th Asian Development Bank Annual Meeting, Delhi, 4 May 2013. *  *  *  I would like to thank the Government of India for hosting the 46th Annual Meeting of the Asian Development Bank (ADB). I wish to take this opportunity to pay tribute to Mr Haruhiko Kuroda for his excellent work in leading ADB for more than eight years. We welcome the appointment of Mr Takehiko Nakao as the new President of ADB, and look forward to continue working closely with the Bank under his leadership in furthering the development of the region. Global economic sentiment has improved since the beginning of this year. The announcement of further accommodative monetary easing by major advanced economies has reduced tail risks and stabilised financial markets. But while the accommodative monetary policy will help authorities buy time to solve the problem, it is by no means a substitute for medium-term fiscal consolidation and structural reforms that are required for the economy to regain competitiveness and return to a sustainable path. Looking ahead, economic adjustments and deleveraging in both the public and private sectors are set to continue in the advanced economies, and regional economies will increasingly have to look to themselves for new sources of growth.
In all cases, an indispensable ingredient of success has been an honest acknowledgement of the problem accompanied by the genuine desire of all the social partners to work out an effective solution in the national interest. In the current circumstances, sitting on the fence is not a responsible option. Not only does it become an uncomfortable position to maintain, but it also becomes less credible with time. There is indeed the danger that anybody who is not willing to be part of the solution will be perceived to be part of the problem. I, therefore, feel obliged to call on all the social partners to adopt a long-term perspective and sign up to a substantial reform package which would lay the foundations for renewed growth and sustainable development. A thriving economy is the best social policy. BIS Review 67/2004  5

A concrete example of the merits of financial integration is how the arrival of foreign banks resulted in a rapid development of the banking systems in the Eastern and Central European countries. The citizens and corporations of these countries benefitted substantially from early access to advanced financial services. The second solution – to create an international institution with taxation rights or a system of ex ante burden sharing – is simply not realistic for the foreseeable future. 4  BIS Review 118/2009  Consequently, we are stuck with the geographical mismatch and, as a consequence, crossborder banks pose a real challenge to crisis management. To accommodate this mismatch, national authorities must cooperate more effectively. This is the only feasible option. In order to achieve efficient cooperation, it is vital to build trust between authorities, which explains my third ingredient. In the EU, we have the home country principle as a fix for the geographical mismatch. We have also signed a European Memorandum of Understanding (MoU) aimed at improving cross-border cooperation. However, the home country principle does not solve the dilemma of international banks and national authorities. Tension arises because the home country is responsible for the supervision of branches but the host country is responsible for the financial stability of the country. This tension also persists if the foreign bank operates through subsidiaries. Many cross-border banks centralise different parts of management. There are good economic reasons for such centralisation.
Conclusion The Swiss economy has enjoyed a high degree of monetary stability for some years now, and this advantageous situation should last for a number of years to come. While the international environment in which we operate has improved, it remains unstable. We cannot rule out fresh setbacks. However, we can count on the significant adaptability of our companies and look to the future with confidence. Nevertheless, our high standard of living in international terms should not lull us into complacency. In recent decades, we have seen our position among the leaders of the most highly developed countries eroded. Corrective measures are necessary. Let’s be clear: the main threat to our prosperity does not come from abroad, where the “made in Switzerland” label is still a success when it is associated with quality. The threat comes from within Switzerland. Take, for instance, our excessive predilection for regulations - often an invisible barrier to the free play of competitive forces - and our hesitation to fully accept an international environment that is more competitive and innovative than it was 20 years ago. The guiding principle for our structural reforms should be: more competition and fewer regulations. We have to have the courage to take this path in order to durably enhance our economic growth. This is essential to the balanced development of our economy and to the confidence that each of us feels in the future. It is with this wish that I conclude my remarks.

This figure reflects both a most significant decline in revenue and a notable increase in expenditure, of which more than 70% is directly related to the pandemic. The latest data, which exclude local government budgetary developments, are along these same lines: they show a budget deficit to August of 7.8% of GDP in cumulative 12-month terms, 4.9 pp up on the end-2019 figure. Besides the highly significant impact the pandemic has exerted on the main aggregate indicators of activity, its influence, and that of the measures implemented to contain it, has been extraordinarily asymmetrical across sectors, firms and workers. For instance, some services sectors linked to the hospitality industry and to transport, where activity habitually requires relatively high levels of social interaction, have since the start of the pandemic shown much more marked declines than those seen in the other sectors (e.g. manufacturing) across a wide range of activity, confidence and employment indicators. The regional distribution of the declines in activity and employment has also been very uneven.1 The crisis has also had a very uneven impact among workers.
Yes, my role is sometimes to remind you of your 5-a-day  Page 9  commitments, to maintain a healthy and balanced diet, even when everyone else is promising you ice-cream. So let me circle back to the core of my remarks today: the BPA market is in a period of accelerated growth and yes, while we are pleased with the opportunities this brings, insurers should approach this with moderation. Our existing principles, including senior management responsibility and the Prudent Person Principle – play into all the areas. These are importantly strengthened and supplemented by the additional supervisory measures announced in the Solvency UK package. The combination of existing and new tools will bolster the role of Boards and firms’ senior managers owning their decisions. And, through improved disclosure, we will support market discipline to empower broader stakeholders. Should those prove insufficient, we will not shy away from highlighting areas of market-wide concern or taking the necessary supervisory actions. My resolve is strong: A healthy and sustainable life insurance market is a long-term value creator for the whole economy. It is in everybody’s interests to work together to ensure a dynamic vibrant industry for years to come. One that serves the needs of, and provides protection for, customers, and makes the strongest contribution it possibly can to investment in the wider UK economy. I would like to thank Alwin Luchmaya, Sejal Haria, Alan Sheppard, Stephen Walton, Igor Brkic, Jemima Ayton and Tapasya Bhandari, for their assistance in preparing these remarks. Thank you. 1.

And a lot is happening in the Bulk Purchase Annuities (BPA) market: pension scheme funding levels have greatly benefited from the rise in interest rates[2], and the UK insurance industry is preparing itself for record levels of bulk purchase annuity transfers[3]. De-risking corporates of their legacy defined benefit schemes brings substantial benefits to UK plc, and the additional capital insurers inject contributes to the security of pension scheme members. This structural shift in the provision of retirement income also gives insurers an increasingly important role as long term investors in the UK real economy. Insurers therefore need to balance the short term financial and reputational incentives to grow rapidly, with long term and enduring financial strength, to meet the long term needs of policyholders and the economy. I spoke to you last year about the conditions for long-term sustainable growth in the annuity sector. This year, in the face of considerable temptation to capture business opportunities, I will argue that  Page 3  BPA writers need to exercise moderation. In that vein, let me invite you to a not quite Epicurean three course feast. By way of starter, I will first reflect on recent BPA market developments and then move to our main course, which focuses on three areas: an expansion of risk appetites; a reliance on third party capacity; and greater interconnectivity with the wider financial system. These clearly call for effective governance, business and risk management.