samchain/econo-pairs-v1 huggingface dataset:
For example, we evaluate such transmission in the Treasury tri-party repo market, the market in which ON RRP is conducted, by collecting similar trade-by-trade data from clearing banks. In addition to these overnight markets, we pay close attention to the Eurodollar market, which I’ll address later, as well as term money market rates. Avoiding unintended effects on the structure of the financial system A second lens for evaluating the operational framework is the extent to which it avoids creating incentives that might result in undesirable changes in the structure of the financial system. This means that the framework shouldn’t have lasting unintended effects on how people invest their money or on how financial institutions interact with each other. The Federal Reserve is operating the ON RRP on a temporary basis, primarily because the balance sheet is currently large. The FOMC’s policy normalization principles and plans make the temporary nature of the ON RRP clear by stating that it will be discontinued when it is no longer needed to help control the federal funds rate.26 This intention was noted again in the 4  BIS central bankers’ speeches  minutes to the January FOMC meeting. As a result, we expect that firms would not make structural changes in how they operate in response to the ON RRP, to avoid the cost of unwinding those changes when it is discontinued. The intention of the FOMC to impose an aggregate cap on the ON RRP, as described in the January minutes, will mitigate this risk.

Villy Bergström: The labour market and wage formation Speech by Mr Villy Bergström, Deputy Governor of Sveriges Riksbank, at the Association of Swedish Engineering Industries' HR director conference, Rimbo, 22 November 2005. *  *  *  Introduction Thank you for your invitation to come and speak here. Today, I will not be touching upon current economic policy in Sweden or the weakening of the krona exchange rate. I will return to those issues in a couple of days in a different speech. The shift in economic policy at the start of the 1990s has entailed better conditions for wage formation in Sweden. Among other things, the adoption of the inflation target has reduced uncertainty over future price developments. Wage-earners do not have to worry that their wage increases will be eroded by excessively fast price rises, while it is easier for employers to determine their scope for wage costs. The lower uncertainty over inflation is reflected in the fact that inflation expectations since the mid1990s have been firmly anchored around 2 per cent. It is important to remember that the current conditions for wage formation in Sweden – a floating exchange rate and inflation target – are considerably different from our previous regime with a fixed exchange rate. A fixed exchange rate was the norm in Sweden for some 130 years, even though the systems for maintaining it changed.
More recently, the current financial crisis serves as a reminder that some aspects of market development may be taken too far, where, for example, they privilege the process of intermediation and neglect the financial and economic realities that lie behind it. The caution inculcated by the Asian financial crisis, and a natural conservatism in many markets in this region, seem to have helped us avoid the worst excesses we have seen in more developed markets. Looking more positively to the future, this region is poised to become the centre of economic growth and wealth creation in the world. Indeed we are already a long way down that path. So far, a great deal of the wealth created has been diverted into markets elsewhere in the world. Market development in this region, on a foundation of efficient infrastructure and sound regulation, will help retain more of that wealth for investment within the region. This evening‘s gala event celebrates the 40th anniversary of one of the world’s foremost financial publications. It is therefore only proper to say something about the vital role of the media in financial market development. The media can, I think, be seen as a kind of complementary, parallel infrastructure to the financial infrastructure that I have briefly described. The media are, of course, more visible, and much more diverse, but they also make use of similar technologies, whether advanced or traditional, and at various points they intersect with the financial infrastructure.

Modern markets are, in fact, dependent on the media, whether in their provision of real-time information second by second, or in the more reflective analysis of market trends, or in the exposure of scandals and malpractices. It is no coincidence that Hong Kong is both a financial centre and a world media centre. At least seventeen international news agencies, 29 international or regional newspapers, and another 29 magazines have a presence in Hong Kong, and all of them have some interest in financial affairs. We have 45 daily newspapers printed in Hong Kong and no fewer than 661 registered periodicals. Now, of course, some of these publications are what are known as ma ging (馬經) or racing papers, and not all of them have their dedicated financial pages. Even so, Hong Kong is remarkably well served by the financial media, and one thing that has never ceased to impress me during my sixteen years as Monetary Authority has been the quality and dedication of the many people in Hong Kong who make up the financial media. The many colleagues in the media play an extremely important part in the development of financial markets, and I should like to pay tribute to their professionalism.
Take the example of reduced marginal tax. While reducing this tax will increase real wages, it does not automatically mean that people want to work more. This is because the wage increase has two effects. Firstly, it makes work more profitable relative to leisure and thus contributes to wanting to exchange leisure for work. On the other hand, an increased real wage means that one receives a larger income for the same amount of work and this means one can afford more leisure. There are thus two counteracting effects. Purely theoretically, it is impossible to say what the net effect will be; empirical research must attempt to answer this question. Many empirical studies have been made in this field, for instance, at the time of the large tax reform in the beginning of the 1990s. The result of the studies is not unequivocal, but a common conclusion appears to be that the labour supply calculated in hours increased after the tax reform, although the size of the effect is much debated. Comparing different groups, the effect seems to have been relatively larger among women and relatively smaller among those with a low income and/or that work part-time. One complication with this kind of study is that the labour provided by many people is probably determined at household level rather than individual level. The labour force participation for an individual may also be affected by changes in their husband’s/wife’s/partner’s income.

Percentage of working age population in the labour force and degree of employment, level (left scale) and change (right scale) 1980-2003, per cent 3  100  2 1 0  90  -1 -2 80  -3 Percentage of working age population in labour force (LS)  Degree of employment (LS) Change in percentage of working age population in labour force (RS) Change in degree of employment (RS)  70  -4 -5 -6  1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002  Sources: Statistics Sweden and the Riksbank  10  BIS Review 64/2004  Figure 6. Percentage of people in work and the number of hours worked per person in work 1980-2003, index (1980=100) 104  104  102  102  100  100  98  Percentage of people in work  98  Hours per person in work 96  96  1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002  Sources: Statistics Sweden and the Riksbank  BIS Review 64/2004  11
Personally, I believe that it will be easier to arouse interest in a discussion based on facts, when the euro banknotes and coins appear next year. Globalisation requires stable game rules After this in-depth foray into the world of the euro, I shall return to the more general issues following on from the current internationalisation process. This creates, as I said earlier, the right conditions for a more rapid economic growth, but it does not offer any guarantee that this will be the case and it is important to remember this. The Swedish economic crisis at the beginning of the 1990s is still fresh in most of our memories. That experience provided a clear illustration of the importance of pursuing a long-term, credible economic policy. However, it also showed the importance of building up properly functioning institutions to oversee the financial markets when deregulated. In Sweden it was evident that the supervisory authorities were not prepared for the reality that would prevail after the deregulation of the credit markets in the 1980s. Similar conclusions can be drawn from the crises in for example Mexico and Asia. These also show clearly that countries wanting to participate on the international capital markets must meet the requirements for openness and provision of information.

There is also a risk that financial operations will simply be moved somewhere else, where the regulations function better. Role of the krona unchanged Now that I have discussed the role of the euro in integration of the financial markets in the euro zone, I will take the opportunity to deviate from the subject slightly and mention briefly the euro's role on the Swedish financial market. You will no doubt remember the discussions on the marginalisation of the krona prior to the introduction of the euro in 1999. Some prophets of doom claimed that the krona would not be able to survive so close to such a large currency. Swedish companies and individuals would spontaneously and rapidly go over to the euro. As we now know, this was not the case. According to the statistics the Riksbank collects on a monthly basis from the Swedish credit institutes, it can be concluded that the krona's share of the total assets has declined slightly. However, it has not been replaced by the euro, but by other currencies, probably chiefly the US dollar. At the end of last year, the euro comprised only 6-7 per cent of the total assets. The Riksbank's studies also show that the total Swedish activity in euro on the money market is relatively slight and in particular concentrated to the deposit and swap markets. There are still a few programmes of certificates in euro and the secondary trading in euro-denominated short-term papers is very small.
I would like to draw your attention on the following topics: •  The system should be more active and keep its public promises to put its windows at the service of selling Treasury bills directly to the interested public. We as Bank of Albania have kept our promises, applying a commission, which is supposed to cover the transaction cost, while this measure will be accompanied by the inhibition of cash receipts at the Bank of Albania windows. Also, banks should invest in modern technology to enable the reallocation of funds of their customers in various investment alternatives, by electronic means and not as it happens more frequently today that individuals still move carrying cash bags. •  Banks should be more active in the T-bills secondary market. We should clearly inform the public that whoever is interested can discount his/her bills at any time like each individual  3/4  who has put little money aside can refer to the banking system not only to deposit but also to purchase Treasury bills. •  The interbank market can and must improve. Nowadays, commercial banks exchange a big quantity of liquidity with the central bank. But, even exchange of this liquidity among commercial banks must be intensified. This would ensure more financing and investing opportunities for individuals and companies, including banks. •  Banks should give more attention to foreign exchange and Treasury bills markets, to further deepen and expand them.

In contrast the asset management regulators had no real concept of consolidated or group supervision and looked primarily at each legal entity in a group by itself. A small building society would be visited by staff from the Building Societies Commissioner every six months, while the insurance regulators’ norm for a company with far greater assets than 42  that small building society would be one visit every three years . Through a series of public papers, the FSA therefore embarked on defining a common approach towards all of the institutions it supervised. It defined its interactions with firms into 5 broad activities: authorisation; baseline monitoring; thematic work; specific risk mitigation; and work once a risk has escalated or crystallised. 40  Building Societies Commission (BSC);Friendly Societies Commission (FSC); Insurance Directorate (ID) of HM Treasury; Investment Management Regulatory Organisation (IMRO); Personal Investment Authority (PIA); Registry of Friendly Societies (RFS); Securities and Futures Authority (SFA); Securities and Investments Board (SIB); Supervision and Surveillance Division (S&S) of the Bank of England 41 FSA website: http://www.fsa.gov.uk/about/what/approach 42 Foot, Michael. ‘The FSA: The first six years’, Journal of Financial Regulation and Compliance, Vol. 12 Issue. 3, (2004), pp. 201-205 14  All speeches are available online at www.bankofengland.co.uk/speeches  14  The extent of the FSA’s interaction with firms was defined by its assessment of two factors: a firm’s probability of failure and its likely impact upon failure.
Due to their specificities, stablecoins are a novelty in tune with some markets’ needs. In the context of the economy’s digitalisation, the past decades have shown how Fintechs as well as Bigtechs have aimed at taking advantage of the latest advances in web-based technologies, notably blockchain, to provide new payment credit and investment services. Often, they propose to achieve this through the creation of various new assets (coins, tokens, stablecoins, with or without smart contracts). We all have in mind the first generation of crypto-assets such as Bitcoin and Ethereum, initially designed to be instruments of exchange in the digital world but suffering from a number of limitations, not least severe price volatility and a lack of guarantee of their convertibility and security. A second generation is emerging in the form of « stablecoins », such as the JP Morgan Coin, UBS’s Utility Settlement Coin or Facebook’s Libra. They share many of the features of crypto-assets but seek to stabilise the price of the “coin” by various means. They might therefore be more capable of contributing to the enhancement of payment systems, with a potentially global reach, especially those sponsored by large technology or financial firms. In the retail market, stablecoin-based solutions seek to address evolving consumer preferences towards instantaneous, continuous, and standardized payments, as consumers become ever more mobile.

But first of all, let me briefly outline what exactly have been the challenges in recent decades that have required us to rethink the way we conduct policy. Globalization has been a long and drawn out process. Countries have jumped at the opportunity to reap the benefits of globalization, with advanced countries leading the pack. Jumps in technology in recent decades, particularly in information and communications, have ensured that services – particularly financial services – have become truly borderless for advanced and developing countries alike, in a much shorter period of time. 2. Challenges to traditional monetary policy under globalization  We are all familiar with the benefits of globalization, with the past few decades seeing cheap exports from emerging markets fueling global trade and growth, albeit with some hiccups along the way. China’s accession to the WTO and the subsequent flux of Chinese exports to the rest of the world, as well as oil exports from the Middle-East, helped to create an environment of prolonged low global prices and low global inflation. We are all familiar with this episode and have given it a few names: the great moderation, the Goldilocks’ economy – not too warm and not too cold, and stable disequilibrium. This is an episode in our history where variability of growth in real output has declined along with the variability in inflation. Along the way, imbalances in the global economy began to build up.
Speech  Embargo 29 March 2022, 6.30 pm  Macroprudential policy beyond the pandemic: Taking stock and looking ahead International Center for Monetary and Banking Studies  Fritz Zurbrügg Vice Chairman of the Governing Board* Swiss National Bank Geneva, 29 March 2022  ∗  The speaker would like to thank Angela Abbate for her support in preparing this speech. He also thanks Toni Beutler, Robert Bichsel, Maja Ganarin, Jacqueline Thomet and Martin Straub, as well as the SNB Language Services. Dear Professor Panizza, Ladies and Gentleman Thank you, Professor Panizza, for inviting me to participate in the public lecture series organised by the International Center for Monetary and Banking Studies (ICMB) in Geneva. It is a pleasure to be here again, particularly since this is the first lecture after a two-year pandemic-related break. While the effects of the pandemic appear to have subsided, we are currently experiencing another tragic development. I am deeply troubled by Russia’s war on Ukraine and want to express my heartfelt sympathy to the Ukrainian people. In my remarks this evening, I will be talking about macroprudential policy and rising challenges to financial stability, two topics that remain very relevant today. In recent months, policymakers in Switzerland and abroad have left the phase of accommodative macroprudential policy behind. Many jurisdictions have rolled back the easing of bank capital requirements that took place during the pandemic. Furthermore, several countries have actually taken steps to tighten macroprudential policy. What is behind this shift?

Improvement in opportunities for change but … A similar gloss can be applied to the realignment of economic policy from the second half of the 1980s to the middle of the 1990s. There have been a number of reforms aimed at creating stability and opportunities. The credit and currency markets have been deregulated, components of the social security system have been reformed, a tax reform has been implemented, targets have been established for government finances, price stability is enshrined in law and the Riksbank has been given an independent status. All this represents good possibilities of the Swedish economy facing a stable future as we step over the threshold to a new millennium. The question is, however, whether the new information technology will be implemented in the far-reaching ways that are necessary in order to reap the really large benefits. Let us look at another period in Sweden’s economic history when things did not go quite as well. After World War II, when activity in the industrialised countries recovered and competition grew, partly because trade barriers were lowered, it became necessary to realign production in Sweden. The need for change resembled what we are beginning to discern on the horizon today. For much of this post-war period, however, wage costs rose at a rapid rate. Profitability in Swedish business was accordingly under pressure from two fronts: growing competition from the rest of the world and rising wage costs.
It would be hard to avoid the country misunderstanding that any such commitment was conditional on the outlook; in other words that our plans could and would change as the outlook changed. And the current strategy has been consistent with a mildly upward-sloping money-market curve, which signals that the market is confident – as it should be – that the MPC will retighten monetary conditions when in due course that is warranted by the medium-term outlook for inflation. Our 2% target is a valuable anchor in shaping and implementing our strategy. In this, insurance companies are by no means on the sidelines. By focusing our purchases on medium and long-maturity gilts, we are aiming in part to shift the composition of the portfolios of long-term investment institutions. And it was encouraging, therefore, that the money holdings of non-bank financial institutions expanded recently. Some economists argue that gilts and central bank money are near perfect substitutes, so that the effect of our Quantitative Easing will be negligible. They may well be close substitutes for traders. But I doubt they are perfect substitutes for insurance companies and pension funds, many of which probably don’t participate in the secured deposit “repo” markets for switching gilts into cash; and which in any case desire assets with a longer “interest-rate duration” than money. If so, holding zero-yielding money balances will not suit them, and we could reasonably hope for increased demand for, perhaps, corporate bonds and other financial assets. Risk premia might decline slightly.

Paul Tucker: The state of the markets – four issues Remarks by Mr Paul Tucker, Deputy Governor, Financial Stability, of the Bank of England, at the Association of British Insurers 2009 Biennial Conference, London, 9 June 2009. *  *  *  Many thanks for the invitation to be here today. The Bank greatly values its relationship with the insurance industry. We are just immensely grateful for the intelligence you provide, as asset managers and insurers; and for our constructive dialogue on policy issues. I have a few brief remarks on four broadly linked issues. The macroeconomic outlook and bank lending Since the beginning of the year I have felt that it will take until late autumn at least to have any kind of a handle on broadly what type of outlook we face. My view on that hasn’t really changed. Of course, over recent weeks near-term indicators, notably the business surveys, have improved a bit. Confidence seems to have stabilised. And that has been most obvious in the financial markets, where the really good news is that firms on both sides of the Atlantic have been raising funds in the equity and bond markets. But a sense of perspective is needed if those apparently small steps forward are not to be frittered away. Inevitably the medium-term outlook remains highly uncertain, and the path back to anything like normality can only be gradual I’m afraid.