samchain/econo-pairs-v1 huggingface dataset:
Several factors contributed to the deterioration of the macroeconomic environment in 1982. External interest rates rose, the availability of external credit decreased, and terms of trade worsened in the wake of the escalation of oil prices. This put enormous pressure on the Chilean peso—which had been under a fixed exchange rate scheme since 1979—. This regime broke down dramatically and spread to almost all business sectors, given large FX exposures, and heavily leveraged financial conglomerates. All these factors interacted with one another to become an outright banking crisis. But, whatever the causes of the crisis, unsustainable debt was mostly explained by internal vulnerabilities: inappropriate regulation, weak supervision, and lack of attention to excessive credit growth, leveraged on a fixed exchange rate scheme. Although the first aid took the form of “emergency loans” by the Central Bank to commercial banks, during the following year conditions deteriorated rapidly enough to lead to the intervention of 11 banking institutions. Another 8 were added in 1983, including the two largest banks in the system. In all, the intervened institutions represented 60% of total credit. All directors and executives of these institutions were, removed from their posts, and replaced by provisional administrators. Measures to fight the crisis aimed at the liquidation of non-viable banking entities, improvement of balance sheets of viable entities through the purchase of deteriorated portfolios, and the reduction of financial burden of bank borrowers through debt reprogramming and preferential exchange rates. In 1985, this extended to the recapitalization of the intervened banks, through the so-called “popular capitalism” program.

In particular, I would like to thank Alejandro Jara, Markus Kirchner, Andrés Fernández, Victoria Nuguer, and Liliana Rojas-Suarez for setting up the agenda, and to Tomás Gómez, Paloma Navarro and María José Reyes for the excellent organization of the event. I wish everyone a very fruitful discussion and a pleasant stay in Santiago. ***  References Espinosa, C. and J. Fernández (2015). “Comparación Histórica de Resultados en el Sector Corporativo en Chile”. Economía Chilena, Vol. 18, No. 1. Agosin, M., G. Crespi, and L. Letelier (1999). "Explanations for the Increase in Saving in Chile", in C. Reinhart (ed. ), Accounting for Saving – Financial Liberalization, Capital Flows and Growth in Latin America and Europe, Inter-American Development Bank, Washington, D. C.  Page 5 of 5
Sweden My view, with hindsight, is that monetary policy in Sweden was also too expansionary in the years preceding the financial crisis. The repo rate was gradually reduced to 1.5 per cent in July 2005. I think it was reduced too much and was too low for too long. Both the nominal and the real short-term rates were lower than normal for most of the period leading up to the crisis. In my opinion, a normal level for the nominal short-term rate is around 4 per cent, while a normal level for the real short-term rate is around 2 per cent1 (see Figure 5). Swedish economic growth was high in the years before the crisis. Resource utilisation was also higher than normal. The GDP gap was positive, while unemployment was lower than the average for the preceding years. Inflation was nevertheless low in the period 2004–2006. Measured in terms of the CPIF2 and in terms of the measure used at that time, the CPIX,3 it  1  Sveriges Riksbank, “What is a normal repo rate?”, article in Monetary Policy Report, February 2010. 2  The CPIF is calculated as the CPI with a fixed mortgage rate and is thus not directly affected by changes in mortgage rates. 3  The CPIX excludes households’ mortgage interest expenditure and the direct effects of changes in indirect taxes and subsidies from the CPI. 2  BIS central bankers’ speeches  was well below 2 per cent.

The recent period of low inflation may appear surprising from a cyclical perspective given that we have seen positive economic growth over the past four years, supporting a steady and gradual absorption of economic slack. This has raised the question of 1/4  BIS central bankers' speeches  which factors, cyclical or structural, may have played a role in the growth-inflation relationship. A comprehensive analysis by the Eurosystem has concluded that adverse cyclical factors have played a crucial role in explaining low underlying inflation. These notably consisted of dampened economic activity and high unemployment in the aftermath of the sovereign debt crisis, and subsequently subdued foreign demand and low oil prices.2 Yet, these factors are of a temporary nature and should not affect inflation over a medium-term horizon, even though they might impact on the speed of adjustment in inflation. Moreover, given the uncertainty surrounding the measurement of economic slack, the true amount may be larger than estimated, which could slow down the emergence of price pressures. This is particularly visible in the labour market, where wage growth has remained subdued despite strong employment gains. Nonetheless, these factors should wane as the economic expansion continues and unemployment further declines. In fact, wage growth in the euro area has already picked up recently and the labour market is expected to improve further.
Finally, an important aspect of responsible finance requires strong and effective governance. John Locke, one of the most prominent 17th century theorists, refers to the concept of a "social contract" in describing the origin of society and its inherent need for governance. The erosion of this social contract and of governance would drastically weaken the foundations of society, setting the stage for its eventual decline in the future. This was evident during the global financial crisis. The experience serves as a strong indication that the own version of the "social contract" in finance should not be overlooked. This extends not only to governance but also to trust, which has traditionally been the social bond between finance and humanity. Central to this is the realisation that financial markets cannot operate in the absence of trust, which in turn necessitates minimum standards for governance, ethics and integrity. This involves not only heightened expectations on the fiduciary duty of boards, but the alignment of compensation packages from short-term personal gains towards long-term value creation. In addition, corporate culture also have an important role in entrenching financial goals with ethical values, through the promotion of sound risk taking cultures and ethical codes of conduct. Conclusion Allow me to conclude my remarks. Often at its most defining moments in history, the rise of society has been intricately marked by the strength of its leadership and its people.

This should give more flexibility to firms and contribute to supporting employment. The ongoing apprenticeship reform aims at making this status more attractive for both workers and firms, in order to tackle youth unemployment. In a context where the number of job vacancies remains too high, the ongoing reform of lifelong vocational training, which is currently too costly and inefficient, should help to better match the skills of workers to the needs of firms. Add very significant reforms of primary and secondary education and university, and you can expect a steady improvement in French labour’s skills in the coming years. The unemployment benefits reform will also be an essential building block in improving the functioning of the labour market. More control over the job-search effort should increase labour force participation and also contribute to tackling structural unemployment, while improving the efficiency of the welfare state. 2/4  BIS central bankers' speeches  [Slide 11] Finally, consistent tax reforms have aimed at rebalancing the tax burden from production factors towards broad-based taxes. Labour costs were lowered, with in particular a tax credit on payroll, implemented in 2013 and reinforced by social contribution cuts this year. Regarding capital, important measures have also been taken to alleviate taxation on productive capital and savings: the scrapping of the household wealth tax on everything except property assets, the introduction of a 30% flat tax on household capital gains, dividends or interests and a decrease in corporate tax from 33% to 25% in 2022 to ensure convergence towards the EU average.
Indeed, in contrast to what usually happens in legislative or transformative processes, the private sector has spearheaded many of the sustainability-related initiatives, such as the development of the green bonds market, arising in response to growing demand for responsible investment, regardless of supervisors. The cooperation of the private sector is also manifest in expert groups, which are helping authorities to define legislation and actions relating to this issue. Examples include, in the European arena, the EU High-level Group on Sustainable Finance, set up by the Commission in 2018 to advise on sustainability matters; turning to the Financial Stability Board (FSB), the creation of the Task Force on Climate-related Financial Disclosures (TCFD) in 2015 is particularly noteworthy. Indeed, regulators and supervisors have also recently stepped up their involvement. And they have done so significantly. This conference organised by the CNMV is a good example of this. As you are all aware, the Climate Change and Energy Transition Law is in the process of being approved by parliament; this Law envisages that a huge volume of investment (around € billion over the coming decade) will be needed to successfully undertake the energy transition. The banking sector's participation will be essential to mobilise such a volume of investment which, in turn, represents a clear incentive for credit institutions to become involved in this challenge.

The popular media sometimes calls Singapore the “Switzerland of Asia”. We have always taken the comparison as a great compliment. Switzerland is known the world over for its stability, prudence, efficiency, and diligence – all attributes that we in Singapore also aspire to. Both Switzerland and Singapore are small trading nations with a shared interest in promoting free trade and maintaining an open, rulesbased global economy. Switzerland is an important economic partner to Singapore. Many Swiss multinationals have a strong presence in Singapore and they are a source of high value-added investments. Similarly, Singapore companies are actively making direct investments in Switzerland. Today, Switzerland is our 5th largest trading partner in Europe while Singapore is Switzerland’s 4th largest trading partner in Asia. As central banks, SNB and MAS share some common challenges. Since the financial crisis, the openness, financial soundness, and strong fundamentals of our two countries have made us highly attractive to global capital, with implications for monetary and exchange rate policies, on which we exchange views. Our two institutions also have to manage a growing pool of official foreign reserves in a global market that is increasingly uncertain. The opening of SNB’s Singapore branch is an important milestone in the strong friendship and good relations between Singapore and Switzerland, and between MAS and SNB. Through this branch, our two institutions will come even closer together and I look forward to new areas of cooperation. BIS central bankers’ speeches  1  We value highly our relationship with SNB.
The present lowincome countries, when they have to struggle in this unsympathetic environment, need more understanding; greater allocations for funding and investment; increased direct aid flows; and tangible support and direct concessions to recognize satisfactory “compliance”. At this stage, I would like to acknowledge a step in the right direction that has been followed by some advanced countries through certain targeted schemes, such as the GSP+ scheme, which provides some welcome relief to low-income countries. Unfortunately however, even such concessions are often coupled with stringent criteria such as Rules of Origin which again adds to the ever growing list of “do’s and don’ts”, which list must be quite a nightmare for those who have to keep track of these! Of course all this has served to create a new breed of corporate executives titled, “Compliance Officers” (CO’s), who may at this rate, soon end up becoming even more important than CEO’s!! Your Excellencies, Honorable Ministers, Distinguished Guests, The Principle in relation to addressing income and wealth disparity among nations is equally applicable to societies within nations as well. Towards that end, I am pleased to announce to this distinguished audience that Sri Lanka has already developed a comprehensive policy framework “Mahinda Chintana”, based on the election manifesto submitted by President Mahinda Rajapaksa at the last Presidential Elections which addresses this issue comprehensively. This policy framework provides a sustainable development strategy designed to address growth and livelihood issues, while covering the income – disparity issue that prevails in our own country.

However, they have reached an affluent status today through their various actions and initiatives. Obviously therefore, as in the case of any successful outcome, we could learn from those case  BIS Review 83/2006  1  studies. In fact, we in Sri Lanka felt that we should do so professionally and objectively. We began by examining the economic and political environments in which many of the highly successful countries operated. We studied the external and internal conditions that prevailed during the early days of growth of those countries. We also attempted to analyze the factors which enabled those countries to break the shackles and reach a stable platform from where they launched themselves to the next level of development. In that exercise, one of our key findings was that, in the journey to reach developed and industrialized country status, many of those countries had immense space and flexibility to grow in an uninhibited environment. Further, when the present day rich countries were growing, (from per capita income of US dollars 1,000 to US dollars 10,000), they faced very few obstacles in the movement of capital and labour. They did not have to be overly concerned about human or labour rights. They were free to impose trade quotas and grant very visible and obvious subsidies to their local entrepreneurs and farmers. They were not subjected to stringent global standards for copyrights. They were not desperately worried about safeguarding the ozone layer or the environment.
Future of RMB internationalisation China has embarked on the formidable task of liberalising the capital account at a time when domestic growth is slowing, its financial system is still maturing, and US monetary policy is normalising. The process has therefore entailed careful calibration and periodic reassessment – crossing the river by feeling the stones. Since 2010, the offshore RMB market has experienced remarkable growth, driven by strong investor appetite and cross-border trade. In the near term, however, the trajectory of RMB internationalisation is likely to moderate, due to a confluence of factors. First, global trade, which is a key factor driving the overseas use of the RMB, has declined. •  Merchandise trade flows between China and its trading partners are expected to be modest in the next year or so, reflecting cyclical headwinds. Second, market expectations of China’s GDP growth affect expectations of the RMB’s appreciation or depreciation. •  As the Chinese authorities forge ahead with fostering a more market-based RMB exchange rate, greater two-way volatility can be expected, compared to what appears to have been a one-way trend appreciation in the past. •  This could have a bearing on investors’ expected returns on RMB deposits and financial assets, and therefore their demand for offshore RMB. Third, the liberalisation of China’s capital account is likely to proceed cautiously in the near term.

•  Policymakers will be more cautious in the short-term as they work to ensure that the market volatility and ensuing capital outflows in late 2015 and early 2016 do not have a lasting impact on market confidence. But I believe the Chinese authorities remain committed to liberalising the capital account and promoting the international use of its currency in the medium term. •  The latest 13th Five-Year Plan, announced in March this year, has made clear the aim to reduce foreign exchange restrictions for both corporates and households and encourage the use of the RMB in cross-border payments and international reserves. Progress in RMB internationalisation will ultimately depend on getting right the sequencing of domestic economic and financial reforms. A strong and stable domestic financial system is a prerequisite for further capital account liberalisation and currency internationalisation. China-Singapore financial connectivity: the journey so far Singapore’s financial linkages with China have grown strongly over the years, particularly since the appointment of ICBC as Singapore’s RMB clearing bank in February 2013. •  The offshore RMB market in Singapore has expanded, with a wide offering of RMB products, including deposits, bonds, derivatives, mutual funds, and trade financing. •  China and Singapore have set up cross-border RMB arrangements for Suzhou, Tianjin and Chongqing, enabling corporates in these areas to borrow from Singaporebased financial institutions as well as repatriate proceeds from bonds issued in Singapore. 2  BIS central bankers’ speeches  But China comes to Singapore not only to do business in Singapore.
As such, it is  market participants and the general  expected that the low inflation  public through multiple means providing  environment that prevailed for several  greater clarity and understanding about  years would be sustained in a range of 4  policy. Moreover, launching of the  – 6 per cent in the medium-term, which  revamped corporate website of the  is also consistent with the inflation  Central Bank is expected to provide high  target bands stipulated under the EFF  quality content with dynamic and  arrangement with the IMF. interactive features. We would also continue to strengthen  At the same time, continuing the  the technical capability, particularly with  practice that has been followed in the  regard to the compilation  past, we intend to make monetary policy  methodologies of macroeconomic  announcements according to an  statistics in line with international  advance announcement calendar. The  standards. This will promote sound  calendar for 2017 is set out below. Central Bank of Sri Lanka – ROAD MAP 2017  15  Monetary Policy Announcements in 2017  expending US dollars 4.0 billion of scarce external reserves in a futile attempt to  1  7 February, Tuesday  2  24 March, Friday  3  9 May, Tuesday  4  27 June, Tuesday  defend the external value of the rupee through market intervention.

Banks’s enforcement powers for  As a priority, we expect to strengthen the regulatory framework pertaining to all financial institutions, including licensed banks, licensed finance  violations of the Act and the Directions issued under it. In this regard, we wish to seek views from the banking sector as well. companies (LFCs), specialised leasing  In line with these reforms, we intend to  companies (SLCs) and primary dealers. It  review all key regulations in the medium-  will further ensure the stability of the  term. In this regard, we will review key  financial sector by promoting the safety  Banking Act Directions, such as share  and soundness of those institutions to  ownership, foreign borrowings, and  face unforeseen challenges in the  corporate governance, and these will be  growing business environment. amended where necessary. In this regard, the Central Bank wishes to  In order to maintain financial stability in  implement the following policies in 2017  the country and in line with regulatory  and beyond. reforms, we have identified the need for  Since the last amendment to the existing Banking Act in 2006, the banking sector landscape has undergone a significant  Central Bank of Sri Lanka – ROAD MAP 2017  further strengthening of the supervisory function of the Central Bank.
Changes in the international division of labour, integrated financial markets and increased competition in broad goods and services markets are more permanent. Globalisation and cyclical developments have been kind to the Norwegian economy. Few countries are benefiting as much as Norway – and losing as little – in the current environment of freer trade in goods and services and cross-border labour mobility. 3. Challenges to monetary policy After almost two decades of high inflation, the rise in prices stabilised in many countries in the 1990s. The year-on-year rise in prices in the industrial countries was about 13 per cent at the beginning of the 1980s. In the course of the following decade, it fell to below 2 per cent. Today, most central banks orient monetary policy towards low and stable inflation. 2  BIS Review 10/2006  The practical implementation of monetary policy can vary, but the common objective is price stability. Low and stable inflation has contributed to solid growth in the global economy in recent years. Despite rising oil prices, international conflicts that have led to uncertainty, and other disturbances, the impact on inflation and output has been moderate. The perception in Norway in the 1960s and 1970s, as in other countries, was that strong growth and low unemployment could be achieved if we were only willing to accept somewhat higher inflation. But it was gradually recognised that this was not the case.

Of equal importance is also to integrate the domestic Islamic financial system with the international financial system. For more than two decades, we have witnessed the success of the development of each of these respective components that has contributed to the rapid expansion in Malaysia's Islamic financial services industry. Indeed, we have seen the development of a comprehensive Islamic financial system. This has placed the Malaysian Islamic financial system at the forefront of the global Islamic financial system. Notwithstanding this, there have been imbalances in the pace of the growth of the components of the financial system. While Islamic banking, being the core component, has recorded significant progress, more efforts need to be directed to promote the growth of takaful and the financial markets. My remarks today will focus on measures to accelerate the growth of the Islamic financial markets by strengthening its required linkages. Of most importance is the development of a wider range of Islamic financial instruments, developing the relevant indicators to support benchmarking and an efficient pricing mechanism as well as to actively promote the role of the market players. Development of a wider range of Islamic financial instruments For Islamic financial institutions to effectively manage its funds, there is a need to have diversity in the type and the maturity of the Islamic financial instruments. This is one area in Islamic finance that offers formidable challenges and opportunities to market participants in Malaysia. A broader range of products and services is vital in this fast changing global financial landscape.