samchain/econo-pairs-v1 huggingface dataset:
15  Among many other changes, the Dodd-Frank Act allowed banks to pay interest on corporate deposits, and those depositors, because they deposit large amounts, are likely more interest-sensitive, than individual depositors. Furthermore, the wholesale money market is intensely competitive, and, as evidence that reserves are distributed across banks in a way that reflects competitive considerations, note that currently, reserves are held in disproportionately large amounts by Foreign Banking Organizations. The reason I think this happens is that those FBOs do not have to pay the FDIC assessment fee on their liabilities (as they hold no U.S. deposits). That suggests that all banks face competition in attracting liabilities to match their reserve holdings, and that the FBOs, because they face a lower cost in doing so, have managed to attract those deposits at a faster clip than domestic banks. This is the sort of competition that I expect to see that will result in the interest on reserves being passed through by banks to their customers and to the broader economy. BIS central bankers’ speeches  7  Moreover, even if we were to put any weight on this consideration, the incentives go the other way – our enlarged balance sheet creates an additional reason to tighten monetary policy in a timely way. If the Fed were to delay in raising short-term rates to protect its current earnings, inflation would rise and this would push long-term rates higher. This would just necessitate a bigger rise in short-term interest rates and a greater loss of earnings later.

Lim Hng Kiang: Increasing and broadening private sector participation in infrastructure development Opening remarks by Mr Lim Hng Kiang, Minister for Trade and Industry and Deputy Chairman of the Monetary Authority of Singapore, at the World Bank-Singapore Infrastructure Finance Summit, Singapore, 29 May 2013. *  *  *  Ms Sri Mulyani Indrawati, Managing Director of the World Bank Group Mr Cesar Purisima, Secretary of Finance of the Philippines Mr Sergey Storchak, Deputy Finance Minister of Russia Mr Areepong Bhoocha-Oom, Permanent Secretary of the Ministry of Finance of Thailand Distinguished guests Ladies and gentlemen Introduction – infrastructure financing is crucial to maintain sustainable growth for countries A very good morning to all of you. It gives me great pleasure to join you at the opening of this year’s World Bank-Singapore Infrastructure Finance Summit. Let me extend a warm welcome to all our guests, and especially to our overseas guests. This is our fourth meeting, and we are meeting under more stabilised circumstances. Emerging market economies have experienced a strong rebound in capital inflows post global financial crisis. McKinsey estimates that some $ in foreign capital went to emerging markets in 2012. These flows are due in part to institutional investors’ hunt for yield in the shorter term, and in part also to the longer-term shift in liquidity from the advanced to the emerging world. The G30 Working Group on Long-term Finance has estimated that infrastructure spending must increase nearly 15% for countries to achieve even moderate levels of economic growth.
The strength of the other four characters on the final shortlist – filmmaker Charlie Chaplin, sculptor Barbara Hepworth, painter William Hogarth, and designer Josiah Wedgwood – gives a sense of the exceptional pedigree of British visual arts – and contextualises Turner’s contribution. To develop this point, I’d like to now introduce a short film from the Committee members celebrating some of the nominated visual artists and outlining their views on the process that led to Turner being chosen. *** So as Darwin is about to be replaced on one of our notes and Churchill is to appear on another, it’s fitting that Turner should be unveiled on the next. And here is the new image for the new Turner banknote. It features Turner’s self-portrait, from 1799, currently on display in the Tate Britain; and one of his most eminent paintings – The Fighting Temeraire – which can be seen in the National Gallery. This painting was a tribute to the HMS Temeraire, which played a distinguished role in Nelson’s victory at Trafalgar in 1805. It also commemorates the Age of Steam replacing that of Wind as this great warship is pulled into harbour by small tug boat. And in classic Turner fashion captures the interplay between light and vibrant colour.

It bridges time. The money we spend today could have been earned from past accomplishments or could be borrowed from future ones. Money is also Memory for a country and its people. Money, after all, can be a piece of art in everyone’s pocket. Far from being “barren”, our banknotes are a celebration of the UK’s heritage, a salute to its culture, a testament to the great achievements of its most notable individuals. In short, money has not just economic value; it has cultural value. By depicting characters on our banknotes, we celebrate those who have advanced British thought, spurred innovation, shown exceptional leadership, shaped this diverse society and forged our common values. The great statesman Sir Winston Churchill will feature on the next £ note, unveiled on 2nd June, and issued in September, replacing the prison reformer Elizabeth Fry. The renowned author Jane Austen will feature on the £ note, which will be issued in 2017, replacing the ground-breaking scientist Darwin. 1  Hicks, J R (1967), Critical Essays in Monetary Theory. 2  “I am what I am” or “Stupid is as Stupid Does”. 3  A moniker used by Kocherlakota. See Kocherlakota, N (1998), “Money is Memory”, Journal of Economic Theory, 81 (2). 4  Book I, Chapter 4 “On the Origin and Use of Money” of Smith, A (1776), An Inquiry into the Nature and Causes of the Wealth of Nations. 5  Kocherlakota (Ibid.)
2  BIS central bankers’ speeches  2007, I took part in a panel debate in Jackson Hole, and indicated then that it is better to attempt to prevent the risk of a financial crisis than to clean up afterwards. The main argument as I see it – now as it was then – is that cleaning up is extremely costly and takes a long time. Experiences in Sweden from the crisis of the 1990s are an example of just how painful it can be. Because, reducing major debts often takes a long time, and during that time possibilities of stimulating demand through monetary policy are limited. It doesn’t matter much if the debts are in the private sector, i.e. among households and companies, or in the public sector. In both cases, a trend build-up of debt in relation to income is always unsustainable in the long term. A question is then how central banks more tangibly can lean against the wind. The policy rate is a tool that can be used. We therefore need to develop the monetary policy framework so that it takes greater account of financial stability. At the same time, financial stability policy is changing, and a new policy area, macroprudential policy, is emerging which also aims to lean against the wind. Hence, we are facing two changes in the areas of responsibility of central banks, both of which create new possibilities to manage the trade-offs between price stability, resource utilisation and financial stability.

A major challenge ahead is the consistent and timely implementation of the Basel III framework. It is of the essence that we all adhere to the agreed timeline, ensuring that our banks have a strong capital base. Only when implemented in a consistent manner across jurisdictions will the expected significant net social benefits, including reduced volatility of credit and GDP growth as well as the lower probability of occurrence of systemic crises, be achieved. To reap the benefits of the new framework, a consistent implementation of Basel III is essential. In this context, I welcome the European Commission’s proposal on the implementation of Basel III in the EU, issued in July in the form of a fully-fledged capital requirements regulation. With this step, the EU has demonstrated its strong commitment to the rapid implementation of the Basel III agreement. As it was already said earlier in this Eurofi colloquium, great attention is presently given to this very important piece of legislation, to verify and make sure that it is fully in line with the agreements reached at global level through the Basel Committee, the FSB and the G20. I am confident that this work will be satisfactorily concluded. SIFIS Another important step taken to strengthen the resilience of the financial markets is the agreement reached on global systemically important financial institutions. A key lesson from the crisis is that incentives need to be put in place for banks to reduce their “systemic footprint”.
The Greek central bank’s debt to the ECB increases in turn, while the Bundesbank’s claims on the ECB  4  BIS central bankers’ speeches  increase accordingly. Such changes in claims and liabilities are expressed in the TARGET2 balances. Chart: TARGET2 balances In a well functioning market, the bank that had drained its central bank reserves would borrow to replace them in the interbank market, balancing the transfer described above. Imbalances in TARGET2 are a symptom of an interbank market that is not functioning efficiently between all countries in the euro area. If banks in the north are no longer willing to lend to banks in the south, the southern banks must meet their need for reserves by borrowing directly from the central bank. The northern banks increase their reserves at the central bank accordingly. In addition to increasing the claims in the TARGET2 system, this inflates the Eurosystem balance sheet. The central banks are the hub of the system and are required to receive deposits from areas where banks have a surplus of reserves and extend loans to areas where banks as a whole need more funding. Imbalances between countries in the TARGET2 system give no indication of who will bear the losses if a bank defaults and the value of the collateral posted is not sufficient. Any losses are allocated among the participating national central banks according to their relative shares in the ECB’s paid-up capital.

These schemes pursue low, stable inflation, healthy public finances, strong and well regulated financial systems and realistic exchange rates. Of course policies vary from one country to another, but their basic principles are shared. In Chile, a fiscal policy that saves during good times, an autonomous central bank that conducts monetary policy under an inflation targeting regime and a floating exchange rate, were key elements to successfully work its way out of the crisis. Furthermore, the country has a solid, well regulated financial system that does not allow for many of the operations that dragged some economies to their  BIS central bankers’ speeches  1  troubled present-day situation. A traditional banking model dominates the banking industry, where a strong base of deposits, both personal and institutional, permits to finance mainly credits. Before the crisis, a lot was said about the decoupling of emerging economies’ growth path from that of developed countries. This idea, which gained momentum in 2007 and 2008, was seriously questioned during the disaster because, as I said, no one was spared its effects. In hindsight, however, we can say that there actually was a decoupling. It is true that in a globalized world commercial and financial intertwining does not allow the economies to isolate themselves from the global cycle, but the performance of emerging markets is living proof that mitigating the negative consequences from the external cycle can be done.
The banks must answer the question of how, in the long term, they can successfully provide their services – that is how a well-functioning market economy works. Allow me, nevertheless, to present a few fundamental considerations. In my view, the key to a successful future for the Swiss banks is that they focus consistently on high-quality services which offer customers measurable added value. Investment in the quality of staff and the product range is essential, especially in wealth management. This includes promoting a company culture with a focus on generating sustainable profits. In addition, robust and wellfunctioning risk controls are essential. All of this is necessary, if the banks are to regain the confidence they have lost and demonstrate their integrity. Moreover, politicians and the authorities can, and should, make a contribution to ensuring that the Swiss banking centre can look forward to a successful future. At the same time it  9  One indicator of the ongoing structural transformation is the fact that the number of banks in Switzerland has been declining continually for years. Between 2002 and 2012, over 50 institutions, or about one-seventh, disappeared. Cf. Swiss National Bank 2013a. 4  BIS central bankers’ speeches  must be clear that industrial policies per se – such as setting targets relating to the size or even the range of services to be provided by banks – should be avoided. We simply cannot know what impact current or future developments will have on the demand for financial services.

In terms of the usual indicators of the financial development of a country – such as the size of the financial sector or access to financial services – Switzerland has one of the most advanced  1  Cf. Levine 2005. BIS central bankers’ speeches  1  financial systems in the world.2 At the same time, the economic importance of the banking industry in this country is above average. It generates an annual gross value added of some 6% of GDP and currently employs about 150,000 people. In addition, at least in the years before the financial crisis, the industry made a significant contribution to overall economic growth.3 When banks are familiar with the local conditions and are also able to integrate knowledge concerning Swiss macroeconomic conditions into their business decisions, this enables them to provide particularly efficient services to the Swiss economy. It is therefore advantageous for our country to have locally established banks which make their decisions here in Switzerland. It is not only with services which benefit companies and households located in Switzerland that the Swiss banking industry creates value added. As we all know, the industry is also very active in the international arena – on the one hand, via exports,4 that is, through the cross- border provision of financial services from Switzerland, and on the other, through its actual presence abroad. In this respect, the most important source of income is the crossborder wealth management business for private customers.
In order to promote the use of LEI at the start of the financial reporting obligations in the European Union, United States and other jurisdictions, an interim pre-LEI system has been agreed. The same report also identified potential data gaps, such as the availability of collateral information which would be necessary to evaluate exposure, and therefore risks, appropriately. Here in the European Union, for example, entities are required to report collateral information, whereas in the United States no such requirement exists. So, even if access issues are standardised across the board, a lot of data issues will still remain. In short, I see three main issues that have to be addressed. First, information gaps still exist, either due to a lack of or differences in reporting requirements. Second, data are fragmented across trade repositories and jurisdictions. And third, there are still obstacles impeding authorities’ access to data. In February 1999, in his report to the G7 finance ministers and central bank governors that led to the establishment of the Financial Stability Forum, Hans Tietmeyer called for “arrangements for the surveillance of global vulnerabilities, including the pooling of information available to the international financial institutions and the international regulatory groupings”. This was almost 15 years ago and we are not yet there. In fact, at the current stage, no authority has a complete overview of the risks in OTC derivatives markets or is able to examine the global network of OTC derivatives in depth.

Second, there remains significant excess capacity in manufacturing across much of the world. In the 2/6  BIS central bankers' speeches  United States, for example, the manufacturing capacity utilization rate was only 76.4 percent in November, about 2 percentage points below its average since 1972. Third, for manufactured goods, there may be more scope for substituting capital for labor, and/or lowering labor costs by importing labor-intensive intermediate goods. To the extent that this margin of adjustment is available, it would tend to dampen the impact of higher wage costs on prices of manufactured goods. Finally, the so-called “Amazon” effect, which results in greater price transparency for buyers, may weigh disproportionately on goods prices. Although inflation remains somewhat below the FOMC’s 2 percent objective on a year-over-year basis, I still anticipate that it will stabilize around that level over the medium term. As I noted earlier, above-trend growth should tighten the labor market further, pushing up wage inflation and eventually services prices. In fact, we have already seen some increase in inflation in recent months. Over the three months ending with November, core personal consumption expenditure prices rose at a 1.8 percent annual rate, up from a corresponding rate of just 0.4 percent last May. The pronounced slowing of core inflation during the first half of 2017 was due, in part, to transitory factors, such as a sharp fall in prices for cellular phone services. Those influences have been temporarily depressing the year-over-year figures.
I would like to congratulate the Islamic Banking and Finance Institute of Malaysia (IBFIM) and the Malaysian Green Technology Corporation (MGTC) for organising this conference, given the global surge in green technology activities as catalysts for sustainable developments. The aims of this forum are to narrow the gap of Islamic financial institutions’ understanding on green technology and to provide green technology companies with the latest information on Islamic financing products and services. It was almost a year ago that I spoke at a similar Conference outlining on how the financial systems can play a catalyzing role in the development of green technology. I mentioned a number of broad key priorities and I am pleased to announce that encouraging progress has been made. Today, my remarks place emphasis on the current and future prospects of Islamic financing solutions that can support the vibrancy and dynamism of the green technology ecosystem. In Malaysia, Islamic financial institutions can leverage on the large untapped opportunities in the green technology sector and at the same time contribute towards the country’s transformation into a high value-added economy. Increasing global importance of green technology Against the backdrop of current climate and environmental concerns that are the consequence of unsustainable economic activities, green technology emerges as a winning proposition. Green technology has strong potentials to stimulate economic growth while mitigating environmental degradation. National and international efforts to promote green technology as a new source of growth have intensified in recent years.

On the need for clarity in monetary policy-making”, European Central Bank Working Paper No. 26. 47  As cited in Petra M. Geraats (2007): “The Mystique of Central Bank Speak”, in International Journal of Central Banking, March 2007, p. 37. 48  Effective communication to market participants is particularly important. As economists with a university background, we often feel the need to build up a series of arguments and weigh various considerations before arriving at a conclusion. But this can sometimes render communication less effective. Financial market participants prefer to be presented with the conclusion first so that they can respond to it quickly. 10  BIS Review 140/2009  The third criterion for good communication is that it must be honest. I referred earlier to the principle that the external communication should reflect the internal deliberations. It is an honest matter to communicate that decisions are difficult and often made on an uncertain basis. But it is just as important – and more challenging – to explain why it is difficult and which factors have been considered and given weight. Before the rebuilding of Bislett Stadium in 2004, the organisation Bislett Alliansen was to decide where the Bislett Games should be moved. The choice stood between Drammen and Bergen. They chose Bergen. The head of the organisation said to the Norwegian news agency NTB: “I have participated for almost 20 years, and this was the most difficult decision I have been involved in.
Mehrling, P. (2014), “Why central banking should be re-imagined,” BIS Papers, No 79, Bank for International Settlements. Mitelman, H. (2013), ”Dags sänka inflationsmålet, [Time to reduce the inflation target]” Dagens Industri, 4 December. Molin, J. (2009), ”Hur har Riksbanken hanterat den finansiella krisen? [How has the Riksbank managed the financial crisis? ],” essay at the conference Riksbanken 10 år som självständig centralbank [The Riksbank – 10 years as an independent central bank], Sveriges Riksbank. Rachel, L. and T. D. Smith (2015) “Secular drivers of the global real interest rate”, Staff Working Paper, No. 571, Bank of England. Rey, H. (2015). “Dilemma not Trilemma: the Global Financial Cycle and Monetary Policy Independence,” NBER Working Paper 21162 Rosengren, E. S. (2015), “Changing Economic Relationships: Implications for Monetary Policy and Simple Monetary Policy Rules,” speech at the Federal Reserve Bank of Boston, 16 April 2015. Schück, J. (2015), ”2 procents inflation är ett orealistiskt mål” [2-percent inflation is an unrealistic target], Dagens Nyheter, 8 May. Stein, J.C. (2014), “Incorporating Financial Stability Considerations into a Monetary Policy Framework”, speech at the International Research Forum on Monetary Policy, Washington D.C., March 21, 2014. Sveriges Riksbank, http://www.riksbank.se/sv/Finansiell-stabilitet/Betalningssystemet-RIX/. Sveriges Riksbank (2010), Background memorandum http://www.riksbank.se/Upload/ Dokument_riksbank/Kat_publicerat/Pressmeddelanden/2010/nr27_beslutsunderlag.pdf. SOU 2014:61, Svensk kontanthantering [Swedish cash management] Report by the Cash Management Inquiry. SOU 2011:78, Stärkt krisberedskap i det centrala betalningssystemet [Higher level of crisis preparedness in the central payment system], Report by the Government Inquiry into Higher Level of Preparedness in the Central Payment System. Sydsvenskan (2015), ”Sikta lägre Ingves,” [Aim lower Ingves] 4 September.

I hope today’s deliberations would guide the relevant committees and those who are associated in policy formulation to take this important initiative forward. Thank you. 2/2