samchain/econo-pairs-v1 huggingface dataset:
Assuming that the ample slack would continue to be a drag on investment and employment, recent signs of improvement in employment data is not expected to turn into a significant recovery, suggesting that the unemployment rate will likely remain elevated for an extended period. Therefore, unit labor costs and domestic demand would continue to support disinflation. Distinguished Guests, As I have mentioned earlier in my speech, the tightness in credit conditions have been moderating since the publication of the July Inflation Report, owing to the improvement in global liquidity conditions and risk perceptions. Easing financial conditions and declining loan rates have been strengthening the expansionary impact of monetary policy. The October Inflation Report had stated that the credit channel would begin to support domestic economic activity during the fourth quarter of the year. In fact, credit demand started to recover in this period, especially with commercial loans picking up significantly. However, the effectiveness of the credit channel in supporting economic activity is still partly restrained owing to the ongoing tightness in lending standards for small- and medium-sized enterprises. 12  BIS Review 31/2010  It is expected that the credit channel would continue to support domestic activity, and the impact of cumulative rate cuts would become more prevalent over the medium term. However, the rising domestic borrowing requirement of the public sector, ongoing problems in the global economy, and elevated levels of unemployment would continue to restrain credit expansion. Overall, recent data releases have shown that economic activity is on a gradual recovery path.

and House of Lords, Central bank digital currencies: a solution in search of a problem? iv Lagarde, C. and Panetta, F. (2022), Key objectives of the digital euro i  ii
BIS Review 39/2005  Before we can draw any conclusions from such surveys, however, we have to adjust these figures for transportation costs as well as differences in taxes and wage costs. Transportation accounts for only a few per cent of the final food price, and the differences in transportation costs between EU countries in turn are so small that they do not have any great significance for the price differences. Nor are transportation costs likely to be lower in Finland, for example, which has a lower price level than Sweden. The differences in VAT on food, however, are considerable. Swedish VAT on food is 12 per cent, and the general VAT rate is 25 per cent, while the rate is between 0 and 10 per cent in several comparable EU countries and just over 19 per cent on average in the EU15.5 If we adjust for the respective VAT rates, the differences in food prices between Sweden and other European countries turn out to be smaller, but the majority of comparable countries still have up to 10 per cent lower prices. In comparisons between Stockholm and other European capitals, too, the price difference averages roughly 10 per cent when VAT is excluded. Payroll taxes in Sweden are clearly higher than in many other countries; employers’ payroll taxes and social security contributions comprise around 15 per cent of GDP while the median in the EU15 is roughly 7 per cent.

I hope to be up to the task of the legacy you are leaving us. My thanks, too, to the members of the Bank’s Executive Commission and Governing Council and, most particularly, to the Deputy Governor, Javier Alonso. Javier, your help and far-reaching knowledge of the Bank are making these first weeks in the job easier for me. But, above all, I should like to thank my colleagues over the course of the years. It would be impossible to list them all; many are here today. The career of a Banco España employee can only fully be understood through the prism of the numerous interactions and discussions between us, which are the bedrock on which we build our knowledge and our particular human capital. It is a privilege to be part of this environment and to participate in such an enriching process. Finally, the most singular thanks are for my family. Without them none of this would have been possible. Let me seize this opportunity to refer briefly to what should, in my view, be the two main objectives of the Banco de España at this juncture and which are related to our relevance and reputation. The first has to do with our insertion into the Eurosystem and into the Single Supervisory Mechanism. Some think this means that the Banco de España has an increasingly diminished role, given that the main functions linked to monetary policy and supervision of the financial system are decided in that framework.
Distinguished Members of the Press,  BIS Review 67/2009  5  As I mentioned at the beginning of my speech, economic stagnation, which grew more widespread in late 2008 and the first quarter of 2009, accompanied by the fall in international commodity prices has led to a significant decline in global inflation. As illustrated in the slide, the downward trend in consumer price inflation in developed markets became more pronounced, while inflation in emerging markets lost ground significantly. Annual consumer price inflation in developed markets declined from 4.4 percent in July 2008 to 0.7 percent in February 2009. Concurrently, consumer price inflation in emerging economies dropped from 9.9 percent to 6.4 percent as of the same period (Figure 8 and 9). Figure 8: Consumer Price Inflation in Figure 9: Consumer Price Inflation in Developed Markets Emerging Markets (Annual Percentage Change)  (Annual Percentage Change)  6  10 8  4  6 2  4  2. 1208  0708  0208  0907  0407  1106  0106  1208  0708  0208  0907  0407  1106  0606  0106  Source: Bloomberg, CBT. 0606  2  0  Source: Bloomberg, CBT. Monetary policy response  Distinguished Members of the Press, Dear Guests, After making brief remarks on inflation developments, now I would like touch on the policies pursued by the Central Bank in this period.

The very low inflation is prompting some to argue that policy normalization may have to wait still, but perverse effects need not be underplayed. But it is likely that policy normalization – understood as a return to positive real policy rates, will be quite a time consuming process, particularly in Europe. Major risks persist, or even grow, in the global economy; they are due to interconnectedness and synchronicity of business cycles, the search for yield that has stimulated big bubbles again, a propensity to resort to protectionism measures (which adds to fragmentation tendencies), the accumulation of systemic risks in non-banking markets. When it comes to monetary policy let me mention a few challenges. The models central banks use have baffled in quite a few instances; we still do not have clear answers as to why inflation is persistently so low in most of the Union, in spite of economic recovery. Financial stability concerns are increasingly on our radars. There are other puzzles, like the flattening of the Philips Curve and I would range here the fall of financial intermediation in some Non-member Sates –in Romania and Hungary in particular. This seems to be a clear case of credit-less recovery, but that may also be the outcome of financial integration – for international companies prefer to source credit on external markets (where these may be cheaper). The global financial cycle poses a major challenge.
Per Jansson: Time to improve the inflation target? Speech by Mr Per Jansson, Deputy Governor of the Sveriges Riksbank, at Handelsbanken, Stockholm, 3 December 2015. *  *  *  I would like to thank Mikael Apel for helping me with this speech. Since the global financial crisis, the world economy has entered an unusually uncertain and turbulent period. The recovery following the crisis has progressed surprisingly slowly in many countries, the European monetary union has been periodically exposed to major strains and there are currently a great number of questions surrounding the developments in China and several other emerging market economies, to name just a few examples. When a storm is raging around you, it is a major advantage to be travelling in a reliable and robust vessel. In terms of an economy, this often means having well-designed economic policy frameworks and clear and credible ground rules which provide robustness and stability. I would argue that the Swedish economy has been such a vessel for a long time now, and that this has been highly beneficial to us, both from a longer-term perspective as well as during and after the financial crisis. It is evident that the Swedish economy is currently regarded as fairly stable when studying the difference in long-term yields in relation to Germany. This difference has been small for almost twenty years, and has occasionally even been negative (see Figure 1). When compared to how the situation was previously, the difference is quite striking.

Among the buffers Hong Kong banks have built up are a capital adequacy ratio of above 20%, and a liquidity coverage ratio of above 150% – well above international standards. The classified loan ratio is just 0.56%. 2/5  BIS central bankers' speeches  22. At the same time, with a return on equity of 13% last year, the Hong Kong banking industry is also among the most profitable in Asia. Capacity 23. Next, I would like to look at the capacity of the industry – skills and training. 24. It is not a coincidence that one of the financial industry’s main professional bodies – the cohost of today’s gathering – is the Hong Kong Institute of Bankers, which was founded back in 1963 to enhance the profession. 25. Everything in the financial services industry goes back to people. Since the financial crisis 10 years ago, we have seen a significant increase in the complexity in capital, liquidity, risk management and other requirements. On top of that, we have rapid developments in technology and related areas like cybersecurity. The industry has to constantly upgrade its professional expertise and standards just to keep pace. 26. But unlike some other financial sectors, our regulatory framework for banks focuses on authorizing corporate entities. There is no formal licensing regime that applies to individual banking practitioners. Our approach has therefore focused on encouragement and guidance – and to benchmarking.
Furthermore, an additional system will be launched soon to offer communication between the domestic clearing houses under the auspices of their organization, the EACHA 16 . Thus, the most effective and best adjusted to SEPA standards local clearing houses may become less numerous but they should not  15  CCBM2 (Collateral Central Bank Management) is designed to be a mechanism which allows the use of securities deposited at foreign central depositories of securities to collateralize monetary policy operations pursued by the Eurosystem and to collateralize mid-day credit in the RTGS system. 16  EACHA (European Automated Clearing House Association), the association established on 28 September 2006, grouping the representatives of 20 automated clearing houses. EACHA aims to: - be a forum for the sharing of information and experience amongst its members and undertake work on the issues of general interest to the payment industry, in particular to develop common standards for SEPA interbank clearing and settlement. BIS Review 134/2007  5  close down, contrary to the least effective ones or those which will not switch into SEPA standards in due time. I would then put forward a hypothesis that harmonization and integration will lead to the enhanced integration of the systems within the area of payment and settlement services, new systems of pan-European character will develop or will be launched but domestic systems will not come out of use altogether.

While there are signs of a certain reversal in this process, a failure in this respect would be particularly harmful for the European project, since integration is at the core of the European Union itself. The policy actions of the ECB and other European authorities, including the decisive drive towards a Banking Union, have been able to overcome or dissipate the worst fears, but the road ahead is still long and difficult. Finally, the role of central bankers should be highlighted in this new context. We are big players in the financial arena, both from the regulatory and monetary policy standpoint; and the framework for our actions – and reactions – must necessarily change and adapt to the new environment. The renewal of the set of instruments to address the price stability  BIS central bankers’ speeches  1  mandate, be it in a situation of low growth, as happens to advanced economies, or in a situation of large capital inflows, as happens to emerging market economies, is one aspect of that change. The need to take on board financial stability considerations is another aspect widely discussed. You will devote the final part of the day to this quest. And I do not want to take more time out of the tight agenda you will follow now. Thank you very much for your attendance to this Conference. I wish all of you and excellent day and a good discussion. 2  BIS central bankers’ speeches
Available at http://www.bankofengland.co.uk/publications/speeches/2010/speech438.pdf. 2  BIS Review 135/2010  experience and those acted as a backdrop to our own operations. In the remainder of this speech, I want to discuss how we structured the UK’s asset purchases. One aspect of our policy design for QE was to act decisively to prevent the risk of deflation. In Japan, although their programme of outright purchases of government bonds (JGBs) amounted to some 13% of nominal GDP, those purchases were conducted over a period of 5 years (2001–2006). And they only began after deflation had already been observed. It is possible that this dampened the impact 8 and other policies were being pursued at the same time. In the UK we conducted the purchases in similarly large size (14% of GDP) but relatively quickly (over 10 months), to ward off the threat of deflation rather than as a response to it. A second aspect of the design was to target our purchases at assets held by the non-bank sector. The proposition is that, by buying gilts from pension and insurance funds (for example), those asset managers would have more cash in their portfolios than they desired, and would be incentivised to use that cash to invest in other, more risky instruments such as corporate bonds and equities.

Such an institute will also play an important role in  2/3  supporting the development of financial markets in Asia, as well as producing the next generation of Asian Financiers. The second area that should also be considered is the harmonization and streamlining of the existing rules and regulations. This is especially important for cross--border capital movements so that the region’s financial resources can flow more smoothly between economies in the region. Streamlining rules and regulations will help reduce unnecessary barriers, and through lower transaction costs, will allow a more efficient allocation of resources. For example, measures to protect domestic markets from outside competition may need to be relaxed. Along the same line, there is room to harmonize taxes on capital market transactions so that tax implications are neutral and do not act as a constraint to efficient resource allocation. Ladies and Gentlemen, My last thought for today is on ways we should proceed to expedite the pace of regional financial cooperation. At this juncture, there is no disagreement that we all would like to see more and faster progress on regional financial cooperation. And, to ensure its progress, we have seen policy makers in Asia ready and prepared to take bold and important policy actions. My view is also the same. I also want to see a faster pace of development rather than a slow one. But one also needs to underscore that, to achieve long term sustainability and continuity, the process of development needs to be market driven rather than policy driven.
The Governing Council welcomes the ongoing work and urges further specific and decisive steps to complete the banking union and the capital markets union. We are now at your disposal for questions. 3/3  BIS central bankers' speeches

In other words, the result is a secure credit supply and expansionary monetary policy. Figure 1. Yields on 5-year bonds Per cent  Sources: Macrobond and the Riksbank  1  Read about all the measures the Riksbank has taken on our website. Information on the measures is updated weekly. See https://www.riksbank.se/en-gb/press-and-published/updates-on-the-riksbank-and-the-coronaviruspandemic/the-riksbanks-measures-in-connection-with-the-corona-pandemic/. 2 [6]  Figure 1 shows the development in yields on different types of bond on the Swedish market. The economic crisis initially meant that bond yields rose. This was not a desirable development. But they have recently begun to fall back. To me, it is obvious that the Riksbank’s expansionary monetary policy measures have pushed down market rates. And if necessary, the Riksbank will do more. Inflation statistics difficult to interpret Under normal circumstances, monetary policy can be based on the analysis of a long line of economic quantities. As monetary policy is conducted with an inflation target, the statistics on inflation outcomes become particularly important. During the economic crisis an obvious problem with inflation statistics has been that there are no prices for the goods and services that cannot be consumed at present. This of course creates problems when calculating the consumer price index (CPI). Statistic Sweden (SCB) have clearly described their methods.2 For products that have no prices, they use the price development on similar products that do have prices. For products that do not have “similar” products, such as various types of foreign air travel, the annual percentage change in total CPI is used.
By settling payments finally and irrevocably, the SIC system provides confidence in the reliability and safety of the Swiss payment infrastructure. With the pace of innovation in the payments arena increasing due to digitalisation, retail transactions are now attracting more attention among central banks. Settling both lowvalue but high-volume retail payments and large-value interbank payments on the same platform is a unique feature of the Swiss system, which has proven effective over the years. From a financial stability perspective, the focus has long been on the safety of large interbank payments, as they make up about 90% of daily turnover in the SIC system. Retail payments, which already account for more than 95% of transactions in the SIC system, are expected to rise further, however. In addition, the emergence of peer-to-peer retail payment initiatives that cut out intermediary payment service providers, such as banks, have the potential to fundamentally change the payments landscape. This is also true for central bank digital currencies, which many central banks are exploring. The SNB has always supported innovation in the payments system. For the Swiss payments infrastructure to remain attractive and reliable over time, it must continuously be enhanced and refined – without compromising on security. The SNB has therefore constantly modernised the SIC system to ensure that it remains technologically state-of-the-art. More recently, the SNB has also broadened access to the SIC system to include licensed fintech companies. This will allow innovative firms to provide new payment technologies efficiently and securely.

At the SNB, we are aware of these benefits and have been using FX EAs for our reserve management. In our view, EAs can be useful execution tools in order to reduce market impact and help minimise our footprint in the FX market. But the increased use of execution algorithms may also change the dynamics of FX markets. EAs make it easier to shift trading activity away from public trading venues to proprietary platforms. And this so-called ‘internalisation’ of FX trading creates new challenges. Too many internalised trades could reduce the trading volume at primary venues to a point where the price discovery process is jeopardised. More research is needed to ascertain whether – and to what extent – the growing use of EAs could trigger or amplify flash events in the markets. These changes complicate market monitoring for central banks, which need to be alert to market dislocation, liquidity issues and volatility – as the market turmoil in March last year once again illustrated. To guard against risks arising from these changing dynamics, central banks must step up their efforts to monitor and analyse these markets. This is no small feat. Besides developing new market functioning indicators, it involves accessing a whole new generation of data – possibly at sub-millisecond frequency. For this, we need to set up a new data architecture, new tools and new expertise. In order to address such challenges the SNB and the BIS Innovation Hub’s Swiss Centre have launched a big data project called ‘Project Rio’.
The theme very aptly sums up the business conditions we face today. Rapid change is the new normal in today’s dynamic world. The rise and interconnectivity of Asia as well as its demographic changes, the impact of regulatory changes and new technologies are all combining to transform the financial landscape of the region. Survival and success in today’s challenging environment will depend on being able to exploit new growth opportunities that come with change. But this journey will not happen without determined action to lay the foundation for future success of the industry. In closing, I wish you an insightful and productive deliberation and trust that your discussion will be useful and will leave you with additional insights to tackle the challenges that you face. To our overseas guests, I hope you will leave KL with pleasant memories of your brief stay here. 4  BIS central bankers’ speeches

While there needs to be recognition of the prudential standards that have been issued by the Islamic Financial Services Board, there also needs to be awareness by the international community of the implications of the new standards that is being introduced on the Islamic financial system. This is important given the common interest of global financial stability. Let me conclude by saying that today’s launch of the Islamic Finance Gateway by Thomson Reuters marks another important milestone in the international development of Islamic finance. Such a comprehensive information and trading portal for foreign and domestic participation in the Islamic financial system will contribute towards its efficiency and effectiveness as a form of financial intermediation. On this note, I wish to congratulate Thomson Reuters on the occasion of the official global launch of this Islamic Finance Gateway. 2  BIS Review 20/2010