samchain/econo-pairs-v1 huggingface dataset:
Nor Shamsiah Mohd Yunus: Keynote address - Regional Conference on Climate Change Keynote address by Ms Nor Shamsiah Mohd Yunus, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Regional Conference on Climate Change, Kuala Lumpur, 25 September 2019. * * * It is my pleasure to welcome you to today’s Regional Conference on Climate Change. The recent shroud of haze in Malaysia and neighbouring countries is a timely reminder of the environmental challenges confronting our generation and the generations to follow. With the passing of time, these challenges have become more pressing, and their consequences more dire. Yet, our response – at the industry, national and global level – is only just beginning to catch up to the enormous task we face. As described by the former UN Secretary-General, “we are the last generation that can take steps to avoid the worst impacts of climate change”. Climate change does not just threaten polar bears in the Arctic. It also threatens our socioeconomic prosperity here in Southeast Asia. It poses risks to the fiscal position of governments, the viability of businesses and the living standards of individuals. As such, the effects of climate change are not merely an ecological problem for scientists and conservationists to worry about. It presents a major economic issue with direct implications on financial stability. It is for this reason that Bank Negara Malaysia, along with many other central banks around the globe, are giving serious attention to climate risk.

In 2017 alone, Bank Negara Malaysia has processed applications from 43 new non-bank players, an increase of 91% compared to the past two years. This is in line with global developments where the size of the global payments industry has increased to account for 34 percent of overall banking revenues in 2016 and is projected to become a $ trillion dollar industry by 2020. This is a significant turning point. In essence, the traditional 1/4  BIS central bankers' speeches  payment channels are increasingly being replaced by nimble, innovative and lower cost alternatives. We must embrace the next wave of technological and e-payment transformation. As a nation, we need to rise and seize this exciting opportunity, take a proactive rather than a reactive role, and benefit from the enormous opportunities brought about by technology to improve our payment system’s security, efficiency, productivity. We need to bereft ourselves of the inertia to move forward with the times. There are a few strategies we ought to adopt, to reduce further the wastage arising from the cost of maintaining two parallel systems by accelerating the displacement of cheques, harness the pervasiveness of mobile payments to ensure reach, and focus on solving the last mile obstacles to enhance migration to e-payments. The enormous cost of maintaining two parallel systems Cheque is a very costly payment instrument to process compared to electronic fund transfer.
Thomas Jordan: Current monetary policy and its significance for the real economy Summary of a speech by Mr Thomas Jordan, Vice-Chairman of the Governing Board of the Swiss National Bank, at the General Meeting of the Aargauische Industrie- und Handelskammer, Wettingen, 20 May 2010. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  In the current situation, the challenges for the SNB’s monetary policy remain formidable. On the one hand, against the backdrop of the economic recovery we have witnessed since mid2009, there is a danger of inflationary tendencies and the renewed formation of a bubble. This is because the current monetary policy is too expansionary in the long term. On the other hand, downside risks are still present or are again reappearing, and should not be underestimated. They relate, in particular, to the further development of the debt crisis in Europe. A deterioration of this situation entails the danger for Switzerland of renewed deflation and recession as well as the risk of another destabilisation of the global financial system. Between these opposing risks the SNB must walk a fine line, moving in terrain that is constantly and rapidly changing, depending on which risk gains the upper hand. With a monetary policy strategy aimed at maintaining price stability, the SNB is well equipped to face these challenges. What are the short and medium-term consequences for the real economy of addressing these challenges?

I am reliably informed that the number of branches has increased from 17 at the beginning of April last year to 55 at the end of November 2007. What is even more impressive is that these branches are found in areas which were previously not serviced by commercial banks. This indeed is a bold move and for this we must commend Barclays Bank Zambia. I am aware that the expansion programme is backed by a capital injection of approximately K40.0 billion which will make it possible for Barclays Bank Zambia to increase its services in the country, particularly to the SMEs sector. Ladies and Gentlemen, the 2005 Finscope Survey undertaken by FinMark Trust confirmed that levels of access to financial services in Zambia are low. Fewer than 15% of adult Zambians are reported to have had access to commercial banks. The reasons given for this low accessibility varied but some of the critical reasons included the distance to banks, the time spent getting to a bank and the cost of getting a bank service. With Barclays Bank Zambia opening branches closer to the people it is our conviction that the number of Zambians to have access to banking services will increase. We therefore encourage as many Zambians as possible to use these facilities. To the residents of Chilenje, I urge you to utilize the services offered by Barclays Bank, otherwise the bank may opt to close its branch due to lack of business and you will be left with no bank in your area.
This is not something we will do for one or two years. We will have to continue this work as our children become young adults and eventually retire, giving rise to a whole new cycle. Hence the work on financial education has to be done continuously, as it is a very important area to help Singaporeans. 1  Financial Literacy Survey of over 1,800 Singaporeans and PRs conducted by The Nielsen Company on behalf of MAS between August and October 2013. Respondents answered questions and participated in focus groups on their knowledge of, attitudes and behaviour towards financial products and management. BIS central bankers’ speeches  1  Towards better financial wellbeing Financial protection 7. What will MAS do? We have a two-pronged approach to help Singaporeans to enhance their financial well-being. The first is to regulate the conduct of our banks and financial institutions. For banking, the key issue is to discourage the imprudent use of unsecured credit facilities. Consumer research has shown the immediate pleasure of purchasing a designer accessory or purchasing the latest gadget using a credit card. If you have a credit card, the immediate pleasure of using it to purchase the latest good that you’re interested in can lead people to spending more than they otherwise would. There was an experiment with a group of students in the US who were asked to bid for a pair of tickets to a basketball match.

The experiment showed that those who bid for the tickets using their credit cards were willing to pay up to 100% more than those who were using cash.2 And this was a group of students that was not a typical population, but a group of MBA students from MIT! Even they, with their credit cards, bid much more when using credit cards than when using cash. This is normal human behaviour. 8. Hence MAS’ credit card rules are important. We have to discourage people from excessive spending using credit cards. Many countries do not impose rules, or some have imposed rules only recently. We moved very early to discourage excessive credit card spending. I think it is a very sensible move, having a minimum income requirement and also making sure that once you have a credit card, you can’t spend too much compared to your monthly income. This is something we have strengthened recently. As some of you may know, we have a total limit on what individuals can borrow on all their credit cards and unsecured facilities combined, with all the banks. The total limit will be capped at 12 months’ of income, which is still a very high borrowing on an unsecured basis. But MAS started with this limit because we are aware that some Singaporeans’ borrowings currently exceed 12 months of income, and we have to give them time to bring their borrowings down. MAS will monitor the situation, and tighten the credit limits further, if necessary. 9.
1  4  Norges Bank: Historical monetary statistics for Norway. BIS central bankers’ speeches  The Norwegian economy is well equipped to tackle the challenges. The defence mechanisms of economic policy are better suited today than when oil prices fell in the mid-1980s. At that time, current oil revenues were largely spent over the government budget. When oil prices plummeted, the budget was severely tightened. Today we have accumulated savings of more than five times the government budget. In the 1980s, the banks had little equity capital. Many of them failed when faced with loan losses, which in turn amplified the economic downturn. In recent years, banking regulation has been enhanced. Banks have built up their capital levels, which puts them in a better position to fulfil their role as providers of credit during a downturn. BIS central bankers’ speeches  5  Towards the end of the 1980s, both interest rates and unemployment reached a high level at the same time. There is little likelihood that this will happen again. Since the inflation target was introduced, it has been easier for monetary policy to have a countercyclical effect. When inflation expectations are firmly anchored, monetary policy should also be geared towards stabilising output and employment. Inflation has been low and stable for a quarter century. This is now of benefit to us all. The oil price collapse in the 1980s led to a substantial current account deficit. Competitiveness had to be strengthened.

One hard-won lesson was particularly important: the central bank must keep the crown and government at arm’s length and must not extend credit to government. Control of the printing press would promote economic stability and prevent unrestrained money printing to finance spending by the crown. Two hundred years later, safeguarding the value of money remains monetary policy’s main task. Responsibility for monetary policy rests with Norges Bank, but today policy is geared towards maintaining stable inflation rather than a stable currency backed by a precious metal. The Bank’s role has also changed in other areas. From being the country’s only bank, Norges Bank took on the role of the bankers’ bank, with the new responsibilities that entailed. The central bank also has a responsibility to promote robust financial markets. The core of Norway’s payment system is housed in this building. Two hundred years as a central bank in a small open economy The Norwegian economy has changed over the past 200 years. In the early 1800s, eight in ten Norwegians worked in agriculture, forestry and fisheries compared with one in forty today. But some important features have not changed. Norway is a small open economy and developments abroad have an impact at home. Our foreign trade is largely based on natural resources. In the early 1800s, fish, timber and shipping were the mainstays of our economy. In recent times, oil and gas sales have accounted for a large share of Norway’s export revenues.
By 2014, what do we find? Due to the magic of compound interest, China is now almost eight times the size of Italy. Indeed, China creates a new economy the size of Italy every 18 months; an economy the size of Portugal every quarter; an economy the size of Greece every month; and an economy the size of Cyprus every week. Those things that can be counted sometimes really do count. Today’s policy debates bear testimony to that. Since the financial crisis, global growth has under-performed. In the decade prior to it, advanced economy growth averaged 3% per year. In the period since, it has averaged just 1%. The world has grown fast, then slow. That has led some to fear “secular stagnation” – a lengthy period of sub-par growth. 3 The self-same concerns were voiced at the time of the Great Depression in the 1930s. 4 The economic jury is still out on whether recent rates of growth are a temporary post-crisis dip or a longer-lasting valley in our economic fortunes. Pessimists point to high levels of debt and inequality, worsening demographics and stagnating levels of educational attainment. 5 Optimists appeal to a new industrial revolution in digital technology. 6 Given its importance to living standards, this debate is one of the key issues of our time. Some insight into that debate can be provided by looking at patterns of growth through a long lens. Over long runs of history, it is possible to detect distinct phase shifts in growth.

Behind the physiological shift from the ridge brows of Neanderthal man to the flat foreheads of modern man may have been a more important neurological one. Flat foreheads allowed growth in the pre-frontal cortex region of the brain. Modern-day MRI scans tell us this region is responsible, among other things, for patience. What we may have seen, tens of thousands of years ago, was Darwinian natural selection of patient homo sapiens over impatient Neanderthals. 42 And with that came rising living standards. The secular struggle – innovation or stagnation? From the distant past, then, to the present and future. Today’s great debate is where next for growth. The sunny uplands of innovation-led growth, as after the Industrial Revolution? Or the foggy lowlands of stagnant growth, as before it? Which of the secular forces – innovation versus stagnation – will dominate? And if growth is going back to the future, on which side of the Industrial Revolution will it land? The balance of these arguments matters greatly for future well-being and public policy. Indeed, it is hard to think of anything that matters much more. More parochially, for central banks setting monetary policy one of the key judgements is the appropriate “neutral” level of interest rates. You can think of this as the interest rate that would align desired saving and investment over the medium term. But what is the “neutral” level of interest rates today? Secular innovation might imply a level at or above its historical average of 2–3%, in line with historical growth rates.
Helping students, couples, retirees, to go about their financial decisions carefully and not just taking life as it comes, can really help improve your quality of life, not just for ourselves, but for our families and loved ones. 22. I encourage everyone who is here, to spend a little bit of time going through the exhibitions, which has been very well put together. So once again, thank you to everyone who has been a partner of MoneySENSE in helping Singaporeans, and let’s do more in future to help everyone have the basic lifeskills of financial management. Thank you very much. 4  BIS central bankers’ speeches

6/8  BIS central bankers' speeches  • Digital bonds have many advantages: - they can be issued in smaller denominations; - primary issuance settlement times can be shortened; and - coupon and redemption payments can be automated. Decentralised Finance Web 3.0 can potentially disrupt the world of Finance. This is the phenomenon of decentralised finance or DeFi, where end-users perform financial transactions directly with one another using smart contracts, without the need for financial intermediaries. It is a fundamentally different approach to financial infrastructure, compared to the centralised systems of today. DeFi is already a growing reality, albeit nascent. Crypto tokens are bought and sold on decentralised exchanges, without the need for intermediaries to clear and record the trade. Another example is borrowing and lending, where anyone can lend and borrow directly to others via a liquidity pool managed by a smart contract. DeFi has the potential to yield significant economic and social benefits. By replacing intermediaries and central counterparties, these open crypto networks can potentially reduce the cost of finance. When firms of all sizes, and even individuals, can directly access financial infrastructure, it could mean more competition and inclusion. But DeFi is not without risks and vulnerabilities. These open crypto networks are not at the stage where they can meet the high standards of governance, security, and resilience that are required of critical infrastructure by central banks and regulators.
With Gladwell’s 10,000 hours under their belt, this person would be as well-informed on the impact of AI on unemployment as anyone on the planet – a true expert, perhaps even a phenomenon. This is the single person or, if you like, Oracle (in the Ancient Greek sense of the word) solution to this decision problem. But is it the optimal one? There are reasons for doubt. Evidence clearly suggests that, in a complex decision environment, drawing on non-expert opinion can provide added insight. It offers diversity of perspective, whose benefits are amplified if those diverse perspectives are discussed and debated to arrive at collective conclusions. This is Surowiecki’s “wisdom of crowds” at work. So let’s go to the other end of the spectrum and draw instead on the insights of a big crowd – say, 1 million people, roughly the adult population of Estonia. This would then, in effect, be an Estonian referendum on AI and unemployment. Clearly, we would now be drawing on a vast array of expert and non-expert opinion. But that would come at the expense of less time for deliberation. Given our time quota, each person would now have only around 30 seconds to give an answer. Facing a tight time constraint and a very complex question, most people would struggle. I certainly would. The best a non-expert could probably do is to provide an instinctive, “fast thinking” response. Or, perhaps more likely still, they might jump aboard a collective, but potentially poorly-informed, bandwagon by copying what others say.

Despite a communications revolution, public understanding of central banks remains low and public trust in central banks has fallen. Improving both calls for a second revolution, focussed on educating and learning from the general public. The Age of Innocence may be over, but the Era of Engagement has only just begun. st  This new era may mean 21 century central banks becoming more disbursed and personalised in their communications, creating new infrastructure to interact with the public and extract their folk wisdom. Thomas Jefferson said democracy is something you can only learn by doing. The same is true of central banking. For the Bank of Estonia entering its second century, and for the Bank of England in its fourth, there is much still to learn and even more to do. 24  All speeches are available online at www.bankofengland.co.uk/speeches  24  References  Akerlof, G and Shiller, R (2009), Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism, Princeton University Press. Bailey, M, Cao, R, Kuchler, T and Stroebel, J (2016), ‘Social Networks and Housing Markets’, NBER Working Paper, No. 22258. Baker, S, Bloom, N and Davis, S (2016), ‘Measuring Economic Policy Uncertainty’, Quarterly Journal of Economics, Vol. 131, No. 4, pp. 1593-1636. Bank of England (2013), ‘Monetary policy trade-offs and forward guidance’, August 2013. Barnes, L, Feller, A, Haselswerdt, J and Porter, E (2018), ‘Information, Knowledge, and Attitudes: An Evaluation of the Taxpayer Receipt’, The Journal of Politics, Vol. 80, No. 2.
Sustained export growth is crucial for the development of Sri Lanka, particularly given the relatively small size of its domestic economy. Relying on the domestic economy is not sufficient to enhance growth. Sri Lanka was ahead of its regional peers in liberalizing its Page 4 of 17  economy in 1977. The adoption of liberal economic policies, such as private sector development, export networks and encouragement of FDI led to immediate improvements in the foreign trade openness of the country. Trade Openness which was 36.4% in 1977, nearly doubled to 72.2% by 1979 while exports which were 18.7% of GDP in 1977, increased significantly to 29.2% by 1979, just two years after opening of the economy. Despite the turn-around in the immediate aftermath of the adoption of liberal policies, Sri Lanka’s international trade performance has been lackluster since then, regressing to levels that were seen during the pre-liberalization era. In 2015, Sri Lanka’s Trade Openness was 36.5% - it was 36.4% in 1977. While exports,  relative to GDP, declined to 12.7% in 2015, having increased to 29.2% in 1979, and it rose as high as 32% in 2000. So we’ve gone backwards. And we have gone back to almost where we were in 1977, in terms of trade performance. Although the common notion is that there is a by-directional relationship between export and economic growth, this relationship has not been seen in relation to Sri Lanka.

Why exports and FDI are key pillars: when you have a domestic market of twenty-one million people and purchasing power of now Page 1 of 17  almost four-thousand US dollars, you simply cannot sustain the 6% or more growth that we need to achieve by just selling into this domestic market. It’s simply not possible. And why do we need 6% growth? We have a very aspirational  society now or more. It’s an educated society which is exposed to all the latest communication technologies so people know what is available around the world and they aspire to achieve a lot of material benefits for their families. So if one cannot deliver that, clearly there could be tensions in terms of our social and political stability. So it has to be growth in exports that drives our growth process to the point where we can achieve 6% plus growth to meet the aspirations of our people. And FDI, if you look around Asia, which has been the most successful continent in terms of growth and export performance, whether it is a country as large as China or one as small as Singapore, FDI has played a key role in the export transformation that has driven those economies. So that’s the model that the government is trying to put in place. It is doing a number of things to sustain that model in terms of the macro-economic policy making. have been put in place.