samchain/econo-pairs-v1 huggingface dataset:
Maria Merian, one such famous artist from the 17th century, was recently celebrated for her works at an exhibition at Buckingham Palace last October. Merian’s work which featured detailed drawings of plants and insects are preserved to this day in private and academic collections all over the world. I confess I knew nothing about Maria before this week. Having now seen specimens of her incredible body of work, I can only imagine the sensation she would have created in her time with the quality and eye for detail that brought her drawings to life – and on a subject like insects, of all things, which were her passion. They are immensely, strikingly beautiful. We hope the artists of ‘Nature Nurtured’ will receive the same appreciation. The artists in this exhibition do much more than record what anybody with a handphone can manage these days. They immerse us in the natural wonders that surround us, from the bustling cities to the more distant hinterlands. Whatever the setting, every one of the artists has a visual story to tell, informed by research and many hours spent to observe and understand the subjects of their artistic creations. These are not just snapshots, in many ways they tell us as much about the artist as they do their subjects. If people centuries ago could be thrilled by pictures of insects, then surely these artists can reignite a deeper appreciation in all of us of our environment.

Caleb M Fundanga: Corporate social responsibility in Zambia Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Launch of the Mukuyu Tree (Slave Tree), Kabwe, 23 December 2006. *  *  *  • The Provincial Minister of Central Province • Hon. Sydney Chisanga, MP • Hon. Rev. Gladys Nyirongo, MP, Minister of Lands • Hon. Kakusa, MP • Your Worship, the Mayor of Kabwe, Mr Richard Yumbe • The Deputy Mayor of Kabwe, Mr Edward Phiri • The Town Clerk, Mrs Vivian Chikoti • Distinguished Invited Guests • Ladies and Gentlemen A very good afternoon to you all. It gives me immense pleasure to be here this afternoon in the town of Kabwe, which also happens to be the place in which I spent my childhood. As you are aware, we are here to celebrate the occasion of the lighting of the legendary MUKUYU TREE, popularly known as the Slave Tree. For many of you Kabwe residents present here, especially our senior citizens, this tree rekindles many happy memories of joyous occasions such as Christmas, Independence Day and Labour Day, when the TREE would shine brightly after being adorned with beautiful multi-fluorescent lights for all to admire. The MUKUYU TREE is one of Zambia’s national monuments. Its history spans more than a century of being part of the lives of the community in this area. Ladies and Gentlemen, This historic monument invokes memories of a sad but important aspect in our beautiful country’s history.
For example, China’s share of footwear imports to Norway increased by 4 percentage points to 20 per cent in 2004. The share of clothing imports increased by 2 percentage points to 32 per cent. The decline in prices for clothing and footwear will probably continue in the coming years. Prices for audiovisual equipment are still falling as a result of strong international competition and high productivity growth. We assume that the effects of structural changes in these markets will gradually be exhausted towards the end of the projection period. External price impulses via consumer goods are expected to increase in pace with unit labour costs among our trading partners. The projections in Inflation Report 1/05, published on 16 March, are based on a gradual increase in the interest rate. This is in line with financial and foreign exchange market expectations. The krone exchange rate is assumed to move in line with the forward exchange rate. This implies that the krone will remain fairly stable around the current level in the years ahead. Growth in private consumption is expected to remain buoyant both this year and next, primarily reflecting low real interest rates, strong growth in real disposable income and a continued rise in house prices. In the period ahead, higher employment and wage growth will continue to fuel household demand. On the other hand, household debt has risen sharply. This implies that a normalisation of interest rates will increase household net interest expenses. After a period, growth in consumption may be fairly low.

The fairly low level of growth in employment, as measured by the number of employed, must be seen in the light of the sharp decline in sickness absence through 2004 after rising for several years. The decrease in sickness absence has increased companies’ supply of  2  BIS Review 18/2005  labour and reduced the need for new employees. Measured in person-hours worked, employment growth was solid last year. Person-hours worked increased by 2.2 per cent from 2003 to 2004. A corollary to the increase in the number of person-hours worked is partly reduced sickness absence and partly three more working days in 2004 compared with 2003. An increase in available person-hours and increased competition and rationalisation in many sectors led to higher-than-normal growth in potential output last year. The economy has therefore been able to grow a fairly rapidly for a period without the emergence of bottlenecks in the labour market. In the business tendency survey, manufacturing industry reported higher output volumes and capacity utilisation. Average capacity utilisation in the manufacturing sector is now close to its historical average. Norges Bank’s regional network reports that nearly half of the contacts would have some or substantial problems in increasing production in excess of planned levels. This may indicate approximate balance between supply and demand in the economy, and that capacity utilisation is about normal. A normal level of capacity utilisation is consistent with an output gap – the percentage deviation between actual and potential output - that is now close to zero.
The ECB also helps to accompany the fundamental change in the financial sector by changing the market structure and infrastructure, e.g. by actively supporting the Legal Entity Identifier (LEI) initiative as well as enforcing financial integration via the Eurosystem’s TARGET2-Securities (T2S) project, which will make cross-border settlement identical to domestic settlement and hence the whole European securities market will become more attractive and cost effective. Financial regulation and transparency I will now expand on this morning’s discussion on “Making markets work: liquidity and regulation”. Apart from central bank and market initiatives, a number of measures in the field of financial regulation, which are intended to prevent another crisis on the scale of the one we have just witnessed, have been decided upon or initiated by various authorities. Such measures contribute to structural changes in the institutional set-up of financial markets and are expected to restore market confidence and, ultimately, to support growth. Yet the intended positive effects of regulatory measures have to be carefully weighed against their costs and unintended side effects. Market participants point out that the regulatory measures must be consistent with one another. The speed of regulatory innovation should not mean that too little consideration is given to the impact one measure will have when taken in conjunction with others. Also, consistency on the international level has to be ensured. Very importantly, financial regulations should be designed and implemented carefully in order to avoid potentially adverse effects on market liquidity and price formation.

And as a result, inflation and its second round effects have been well contained. Headline inflation came down from a peak of 6 percent in the second quarter, to 3.3 percent in the last quarter, and to 3 percent in January this year. Meanwhile, external stability continues to improve, with current account turning into surplus, and a strengthening of international reserves to almost 67 billion US dollars. The economy proved to be quite resilient to external shocks. And growth momentum continued satisfactorily at 5.1 percent for the whole of last year. But most of you are probably more concerned about prospects for this year and the next. This is understandable. This year, the economy will continue to face a number of important challenges. Economic uncertainty has increased, as evidenced by declining investor sentiment and consumer confidence. Outside Thailand, the threat of a disorderly unwinding of global imbalances still persists. At home, the implementation of the reserve requirement and the introduction of the amended Foreign Business Act turned out to be unpleasant surprises to investors and the global community. And on top of all these, political uncertainty remains a material factor in the private sector's decision to invest. The concern that some of you may have is: Can Thailand weather all these challenges well? Are we turning our back on globalization? A confluence of events in the past few months does appear to present a cause for concern.
This provision builds up a buffer during the benign part of the cycle, which starts to be released when recession comes knocking on banks’ doors. Counter-cyclicality is intrinsic to dynamic provisions and part of its usefulness can be seen in the resilience shown so far by Spanish banks in the current crisis. Furthermore, its direct impact on the profit and loss account (reflecting losses at a time when these losses are really being built up in balance sheets) constitutes a way to make banks more aware of how credit must be priced, reducing the underestimation of loans risk premia and, to some extent, compensating the relaxation of credit granting standards in good times. It also delivers the right information to investors about the financial position of the bank. In all, dynamic provisioning allows a proper recognition of credit risk. I must also admit that there are voices raised by some institutions that do not agree with this view, and particularly, accounting standard setters. In this respect, we should call for further dialogue between accounting rule setters and supervisors as well as a clarification regarding roles and objectives of each of them. I really think that our objectives are compatible and that delivering the relevant information to investors should not be an impediment for supervisors to ensure the stability of the banking sector by promoting the most adequate measures that experience and results have proved to be useful. Very much in line with dynamic provisions, the buildup of capital buffers also deserves room in our discussions.

Miguel Fernández Ordóñez: Procyclicality in the banking activity Speech by Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain, at the Conference on Procyclicality and the Role of Financial Regulation, organised by the Bank of Spain and the Financial Stability Institute, Madrid, 4 May 2009. *  *  *  Good morning ladies and gentlemen. First of all I would like to welcome you to the Bank of Spain. Also, let me thank you all for your presence here today to discuss on one of the most difficult and relevant topics affecting financial regulation: procyclicality in banking activity. Let me also thank the BIS Financial Stability Institute, and in particular its Chairman, Mr. Josef Tošovský, for all the support and good advice received during these last few weeks during the preparation of this event that we have co-organized. We are very pleased to have as speakers in this conference a large group of excellent professionals who are directly involved in financial supervision and regulation. A high level meeting like this one is a major opportunity to start building up a common and efficient framework in order to face the procyclicality issue. Cyclicality can be considered an inherent part of economic activity. Banking activity is no exception; it is also affected by the upswings and downturns of the real sector cycles. Not only history proves this, but current events do also. Any doubt about this has been violently resolved after the summer of 2007.
It is based on sound principles, such as market-consistent valuation of the balance sheet and a risksensitive approach to determining capital – many of which are embedded within Solvency II. The success of these principles was demonstrated by the resilience of the sector during 2008 But Solvency II moves beyond our current regime. So although there has been no change in our view of the type of risks that firms are exposed to, and we do not intend to use Solvency II to increase the aggregate level of required capital across the industry, this is not the same as saying that the surplus capital positions of individual firms will not change with the arrival of Solvency II. It is a different regime, with a different shape to ICAS. Firms will therefore see movements in their regulatory capital positions. For some firms these positions will be tighter, for others looser. This brings me to the second myth: that we intend to re-create the ICAS regime under the guise of Solvency II. Let me be clear: Solvency II will be the foundation of our supervisory approach and we will fully embrace the change that accompanies it. Although Solvency II BIS central bankers’ speeches  1  incorporates many of the features of ICAS, the shape of the new regime is different. The EU is moving to a harmonised, risk-based, transparent, and “going concern” regime. This means some significant changes to the shape of the balance sheet and our assessment of financial resources.

It is therefore my intention that, following a thorough and consistent review of firms’ applications, we make final decisions on all models for firms for which we are the home supervisor in early December, and communicate those decisions to firms simultaneously at that point. Firms that do not have an internal model will, of course, enter the regime on the standard formula. In conclusion, we will faithfully implement Solvency II here in the UK. We will be proportionate, and we will be robust in the pursuit of our objectives. And in doing this: •  we will not use Solvency II to increase capital requirements across the insurance sector;  •  we will not keep the ICAS regime alive; and  •  we will give firms plenty of time to adapt to the new regime. Thank you. 4  BIS central bankers’ speeches
And the Treasury Select Committee of the House of Commons regularly summons me and other members of the Monetary Policy Committee to give evidence on the basis of these reports. Finally, the Government has made it a requirement that, if we miss the target of 2.5% by 1% or more in either direction, the Committee must write an open letter to the Chancellor, explaining why, how long we expect to stay adrift from the target, and what we intend to do about it. These arrangements, taken together, provide a framework of transparency and accountability that, as far as I am aware, goes far beyond anything which applies anywhere else in the world. Public understanding of what we are trying to do and why - even understanding that the conduct of monetary policy is not a precise science but rather a matter of balancing risks - is crucial to our success. And transparency and public understanding should - by influencing public expectations - reduce the costs of maintaining low inflation. But, of course, you need broad shoulders. As you know the minutes of our January meeting - published a fortnight ago - revealed that the MPC was for the first time divided in its policy decision. That inevitably led to an excited and over-simple categorisation of BIS Review 18/1998  -5-  individual members of the Committee as either hawks or doves.

In the case of LTCM, stress testing could have given banks at least some warning of the types of exposures they could have faced last fall. The critical importance of stress testing is noted very explicitly in our new supervisory guidance. Sound Practice Guidance The sound practices document accompanying the Basle report presents an important set of standards that will guide both banks and their supervisors. It appears that banks generally have tightened the credit risk management standards for their HLI exposures since the collapse of LTCM. However, it is important that supervisors try to ensure that progress continues. Memories tend to be short, and we want to make sure that as markets calm down, as they have in the past months, banks do not return to the old ways of doing business. The adoption and rigorous enforcement of enhanced risk management practices should contribute substantially to limiting excessive risk-taking and leverage at HLIs. This is the case because HLIs cannot trade without access to financing and liquidity from banks and securities  3  BIS Review 27/1999  firms. If each counterparty manages its risks appropriately, the chance of contagion to other institutions and the financial markets more broadly would be reduced substantially. It is this risk of contagion and financial market instability that is the principal concern of central banks and supervisors. Along with other federal banking supervisors, the Federal Reserve has moved quickly to implement the recommendations of the Basle Committee’ s report.
It has been the main driver behind the remarkable increase in economic and financial integration as well as the transformation of the financial system over the past decade. It has made the euro area economically more stable for both investors and consumers. In particular, financial integration has promoted cross-border portfolio flows in the euro area and thus enabled consumers and investors to share and diversify risks. As illustrated yesterday, EMU has increased banking integration. Another interesting finding is that key policy initiatives at the European level, notably within the context of the Financial Services Action Plan, have made a significant contribution to fostering banking and regulatory integration. However, in my view, there is room for improvement, especially as regards cooperation and coordination between national supervisors and regulators in Europe. As the Vice-President emphasised in his opening address yesterday, there is a growing understanding of the need to strengthen the pan-European character of financial stability arrangements for crisis prevention and resolution. However, during the ongoing financial turmoil, the euro area and the EU as a whole have proved their capacity to act decisively and promptly under difficult circumstances. National measures have been coordinated in a pragmatic manner with a view to enhancing their effectiveness through mutual reinforcement. As regards the role of central banks in banking supervision, recent tensions in financial markets have confirmed that close cooperation and active exchanges of information between central banks and supervisory authorities are indispensable. In particular, the financial turmoil has revealed areas in which cooperation could be strengthened.

Jürgen Stark: Closing address at the Fifth ECB Central Banking Conference Speech by Mr Jürgen Stark, Member of the Executive Board of the European Central Bank, at the Fifth ECB Central Banking Conference “The Euro at Ten: Lessons and Challenges”, Frankfurt am Main, 14 November 2008. *  *  *  Ladies and gentlemen I wish to thank all of you for joining this 5th ECB Central Banking Conference here in Frankfurt. It has been a privilege for us – and here I am speaking also on behalf of my colleagues on the Executive Board of the ECB – to host this event, with such distinguished panellists and participants during this busy and extremely difficult time. In my view, the past one and a half days have been a great success. Your expertise, experience and thought-provoking ideas, as well as your contributions to the discussions have enriched the intellectual and political debate on monetary union in Europe – its achievements, its challenges and its future. It has not been the aim of this conference to celebrate the ECB and its achievements. However, it is worth recalling that, contrary to what was expected by a number of critical observers in the run-up to Economic and Monetary Union (EMU), the euro has been a remarkable achievement. Let me also remind you in this context that the ECB is obliged to maintain price stability.
By early entry I mean entry close to the earliest possible date, which one can recognise to be around year 2006, given the assumption of entry to the European Union in 2004. It is this time neighbourhood we need to consider. The points would be as follows. First of all, let me say, that, in my opinion, arguments applicable to Poland are also largely true for other candidate countries in most of the cases. Poland has achieved a relatively high level of structural convergence with the European Union. It can be measured, for example, by a share of exports to the EU in relation to all exports. This number is actually higher in Poland right now then it had been in Greece, Portugal and Spain before their respective entries to the EU and the MU. We have also achieved a high degree of cyclical convergence. These two points combined, translate to a situation in which Poland is not so sensitive any more to, what is called, an asymmetric shock. Second, we have achieved a tremendous extent of disinflation. Inflation in Poland this year would be between 4% and 5% and similar figures will apply to other candidate countries. If one compares this data with inflation rates in some of the EU countries, one cannot see much of a difference - look at Holland. Third, Poland had managed to achieve a high level of disinflation while introducing a high level of price liberalization. It means there is only a limited scope for further corrective inflation.

All but few prices are completely liberalized and driven by healthy market conditions. Fourth, in respect to so-called Ballassa Samuelson Effect, I agree with President Duisenberg, that it is mostly an empirical issue. I think the extent of this effect has been overstated and overdone in many theoretical studies. Empirical data in respect to Poland has shown, that in the past the contribution of BS Effect to the overall inflation rate has been in the range from 1% to 1.5%. As a matter of fact, BS Effect is also present in the Eurozone, in countries like Greece and Portugal. This is not the reason for, as some people heralded, a weak euro. Problems of Greece are not responsible for weak euro that is, if one thinks euro is weak. The already mentioned disinflation, limited scope for future corrective inflation, and manageable level of BS Effect make the Maastricht Inflation criteria achievable. Fiscal criteria must be met in the interest of the countries concerned, as it would contribute to their economic growth. Fifth, there is an intermediate period between the date of entry of Poland and other candidate countries into the European Union and membership of the Monetary Union. The question is, what is the optimal length of this period. I would like to point out, that it might be a rather turbulent time. BIS Review 1/2002  1  Economic forces behind convergence and rapid capital flows might create an economic roller caster.