samchain/econo-pairs-v1 huggingface dataset:
Inflation - like war, to which it is often closely associated - destroys the fruit of honest labour, it devalues savings and investment, it erodes the social fabric of society and ultimately puts the very foundations of democracy and freedom at risk. This is one of the lessons of the bitter history of the 20th century, which was a century of hyperinflation in the wake of wars and wars in the wake of hyperinflation. No one has described the deleterious effects of inflation more vividly than Stefan Zweig has done in his book “Die Welt von Gestern” on Germany in the 1920s. He depicts the sense of distrust, despondency, desolation and despair that hyperinflation brought to Germany in 1923 (in the wake of the first world war) from which the fragile democratic and economic institutions of the young Republic were never really to recover (thus preparing the ground for the Second World War). Zweig contrasts this with the pre-war “golden age of security”, when “it paid to put money year for year in safe investments”, when “the saver was not yet robbed”, the “honest deceived” but when the “most patient, not the speculators had the greatest profit”. He concludes “that nothing has rendered the German people so embittered, so full of hatred, so ready for Hitler as this inflation” (own translation). From this one could establish not just an economic case but an ethical obligation to maintain price stability.

My first answer to this question was a clear “no” if faith means “belief in unquestioned authority”. Central bankers should not ask just for faith, they cannot expect such faith and they cannot take faith for granted. Instead they must work hard every day to earn the trust that the public places in them. Central bankers are not super-humans, they cannot be guaranteed to be benevolent or omniscient. They will perform best within an institution that is given a clear objective and that is held accountable by the public. Conversely, the public would be ill-advised to put “blind trust” in central bankers. Price stability, preserving the value of money is the precondition for a well-functioning market economy, for economic and social stability, a free and prosperous society. Price stability is too important for society to be left “on trust” to the vagaries of the political process or to the whims of individual central bankers. It requires to build solid and strong independent institutions which are dedicated to serve and defend the common good of price stability. It is both economically sensible as well as democratically legitimate for society to delegate such a limited and well-defined task to an independent central bank. Such an act of delegation confers an obligation on the central bank to fulfil this trust and to be held accountable. Faith may be all right, but control by an attentive public will also be needed.
In closing this section of my statement, I do not think it is possible to over-emphasize the importance of testing to help improve readiness. To illustrate this point, I would like to draw on our experiences with Fedwire, the Federal Reserve’s wholesale interbank payments system. Much of the current Fedwire software application was written in the last five years, with the Y2K problem in mind. Nevertheless, some of the older software code that was carried over into the new application was not Y2K-compliant. Without the rigorous internal Y2K testing program that the Federal Reserve adopted, our Y2K remediation efforts might, therefore, have been incomplete. I think of this experience whenever I hear it said that some countries are immune to Y2K because they have only recently introduced information technology and that recent software programs are less affected by Y2K. I ask whether those programs have truly been thoroughly tested for Y2K compliance. Contingency Planning Efforts The third major role of the Joint Year 2000 Council will relate to contingency planning. In this context, I should note that contingency planning is something that most financial market authorities, particularly central banks, undertake regularly with regard to a wide variety of potential market disruptions. Most private-sector financial firms, as well, have well developed contingency and business continuity plans in place for their operations. Nevertheless, it is clear that contingency planning for Y2K problems has a number of unique characteristics.

This process should lead to a more efficient allocation of finance within the global economy, but it will also call for the ability to adjust to structural changes in order for stable financial systems to be maintained. Today, I should like to outline the likely future development of the financial sector and of the financial markets in the euro area as envisaged by the European Central Bank (ECB). To this end, I shall first briefly discuss the impact of the introduction of the euro on domestic money markets. I shall then turn my attention to likely developments in the financial markets and in the banking system, before concluding with some remarks on how these likely developments might affect the stability and efficiency of the financial system in the euro area. Impact of the introduction of the euro on money markets Until the end of 1998 the various money markets of the euro area still displayed a certain number of distinctive features. However, following the changeover to the euro they were integrated swiftly and smoothly at the beginning of January 1999. A highly competitive single money market has already emerged in the euro area, as banks were well prepared for the changeover to the euro and the TARGET system has provided an efficient means of making cross-border payments. In particular, transaction volumes in money markets rapidly reached high levels while typical bid/ask spreads decreased almost immediately to very low levels. This indicates the depth and high degree of liquidity that the euro money market has already achieved.
The Urban Hub has also partnered the Singapore Cooperation Enterprise – a platform that leverages on the public sector expertise of Singapore. Together, they have implemented six projects in Indonesia, Vietnam, China and Mongolia. This includes helping these governments develop a regulatory and financing framework to prepare PPP projects for private sector investment. 4  BIS central bankers’ speeches  37. Regional governments have also introduced schemes to encourage private sector investment. For example, the Indonesian Ministry of Finance has worked with the World Bank to set up the Indonesia Infrastructure Guarantee Fund. This fund provides guarantees to the private sector against risks arising from government actions, so as to improve the creditworthiness and quality of PPP infrastructure projects. 38. A critical success factor for achieving Asia’s infrastructure investment potential is a well-developed financial sector. Asia needs financial markets that are deep enough to effectively intermediate its considerable savings pool and broad enough to provide a range of suitable instruments for risk mitigation. Although ASEAN has made progress on these fronts since the 1997 crisis, more needs to be done. These include strengthening legal and regulatory frameworks, increasing market access, harmonising cross border regulations, and raising the level of corporate governance. 39. ASEAN has set in motion several initiatives. It has drawn up a scorecard to identify gaps in the development of bond markets. Its capital markets regulators are working on initiatives to harmonise domestic laws, regulations, and practices.

It has introduced the ASEAN Plus Standards, which are disclosure requirements based on the standards on cross-border offerings set by the International Organisation of Securities Commissions (“IOSCO”). And last month, some ASEAN exchanges announced plans to establish linkages to facilitate trading among them as well as to jointly market themselves to international investors. 40. It is early days yet. ASEAN is still some way to having a well-developed and integrated capital market. But the resolve is strong, important steps have been taken, and progress has been made compared to ten years ago. And as ASEAN’s capital markets grow and integrate, long-term investments such as infrastructure will become much more attractive to private sector players. Conclusion 41. Let me conclude. ASEAN is a diverse collective of nations at various stages of development. In some ways, this is a disadvantage compared to sovereign economies like China and India. But in other ways, it is an advantage, providing investors in Asia a good diversification opportunity and the value proposition of a network of value-adding activities leveraging on the different comparative advantages of its member countries. 42. I congratulate Bank of America-Merrill Lynch for organising this impressive conference. You have put together a comprehensive line-up of topics that go into the specifics of investment opportunities in Asia. I wish you fruitful discussions and an enjoyable time in Singapore. Thank you. BIS central bankers’ speeches  5
And by being clear about how we view future monetary policy we can also increase the efficiency of monetary policy (slide 1). It is not merely the current interest rate decision and the current level of the interest rate that are important to future inflation and demand in the economy. Households and companies do not base their financial decisions only on the current interest rates. Expectations of how the repo rate will develop over the coming years are at least as important. But there are also other reasons for the increased openness. As I mentioned earlier, public support and legitimacy are a fundamental requirement for monetary policy to work. We have freedom with responsibility and with this come demands for insight and accountability. Openness is also something that has long imbued Swedish public administration. The principle of free public access which means that public authorities' activities shall as far as possible be carried out openly, was established as early as the late 18th century, a time when few other countries had such ideas. So this is a long tradition we are maintaining. The fact that we are examined closely is also something that affects the efficiency of our work. The more open we are, the easier it is for a member of the Committee on Finance or any other member of society to evaluate how well monetary policy works. Clarity and increased openness outwards lead to a better discussion of monetary policy.

This transition in MP regime has been more pronounced in Latin America. While in 1994 twelve countries in the region had in place an ER anchor, and four others had a monetary growth anchor, by 2004 only three countries remained with an ER anchor. The transition of policy frameworks during 1994-2004 led to a significant rise in the number of Latin American countries with a floating regime (from three to twelve countries) and an inflation targeting framework (from one to five countries). 2. Chile’s transition to its current monetary policy framework  The macroeconomic institutional and policy framework of Chile has been transformed radically in the last 25 years, from one that made stabilization an exceptional result to one that has facilitated achieving price stability. Chile’s current macroeconomic framework is based on four pillars: (i) an autonomous Central Bank with the explicit mandate of safeguarding stability of prices and payments; (ii) a low public-debt to GDP ratio and a fiscal policy rule anchored to a structural fiscal surplus; (iii) a robust financial system, with a dynamic, competitive, and well capitalized banking industry, appropriately regulated and supervised; and (iv) a full-fledged inflation targeting monetary framework, complemented by a floating ER regime. Substantial progress was made in CBC autonomy since the 1980s, when autonomy was very weak, even at lower levels than in the average emerging economy. The granting of legal independence in 1989 through constitutional law, led to a much improved position in the international ranking of central bank autonomy.
In August 2011, in an attempt to counter the exceptionally strong Swiss franc, the SNB narrowed the target range for the Libor to between 0.0% and 0.25%, aiming to keep it as close to zero as possible. It also took steps to expand banks’ sight deposits significantly. 1 These measures were successful up to a point, however in the light of ongoing uncertainty on the financial markets and more bad news from the euro area, upward pressure on the Swiss franc remained high and became more intense still at the beginning of September 2011. The SNB therefore decided to provide the foreign exchange market with clear guidance in the form of a minimum exchange rate for the franc against the euro. On 6 September 2011, it announced that it would no longer tolerate a EUR/CHF exchange rate below CHF 1.20. This exceptional measure enabled the SNB to take a stand against an acute threat to the Swiss economy and to counter the risk of a deflationary trend emanating from the massive overvaluation of the Swiss franc. The minimum exchange rate was introduced as a temporary, emergency measure in a time of extreme turbulence. The franc remained high in the period that followed, yet deflation risk was held in check. Moreover, the minimum exchange rate bought Swiss companies – especially exporters and industries facing competition from imports – some time in which to plan their next steps in a very difficult operating environment.

Interest rate and exchange rate developments in recent weeks suggest that our monetary policy measures are gradually gaining traction. Economic outlook By introducing the minimum exchange rate, the SNB moderated the risks and adjustment costs to which the Swiss economy was exposed and bought it some time to adjust to a stronger franc. We are aware that the discontinuation of the minimum exchange rate will mean that Switzerland has some difficult times ahead. The higher Swiss franc exchange rate – and especially the speed of Swiss franc appreciation since the discontinuation of the minimum exchange rate – is particularly challenging for exporters and industries facing competition from imports. BIS central bankers’ speeches  5  In 2014, the Swiss economy recorded year-on-year growth of 2%. This increase was slightly above long-term potential growth and reflects the robust state of our economy. The exit from the minimum exchange rate has led to a deterioration of economic conditions. We thus expect a much more modest expansion of real economic output this year of just under 1%. A noticeable weakening in the economy may be expected, particularly in the first half of the year. In the short term, significant underutilisation of production capacity may be expected and unemployment is likely to increase moderately. There is of course a particularly high degree of uncertainty attached to such forecasts. For one thing, they will depend on how the Swiss franc exchange rate evolves in the coming months. For another, it is not certain how international conditions will develop.
Timothy F Geithner: Systemic risk and financial markets Testimony of Mr Timothy F Geithner, President and Chief Executive Officer of the Federal Reserve Bank of New York, before the Committee on Financial Services, US House of Representatives, Washington DC, 24 July 2008. *  *  *  Good morning, Chairman Frank, Ranking Member Bachus and other members of the Committee. Thank you for giving me the opportunity to testify today. I very much welcome the opportunity to appear before you with Chairman Cox of the Securities and Exchange Committee (SEC). The Federal Reserve and the SEC are working very closely together in navigating through the present challenges, and my colleagues at the Fed and I very much appreciate his, and his colleagues’, support and cooperation. The U.S. and global financial systems are going through a very challenging period of adjustment. The critical imperative today is to help facilitate that adjustment and to cushion its impact on the broader economy. The forces that made the system vulnerable to this crisis took a long time to build up, and the system will need some time to work through their aftermath. Looking forward, the United States will have to undertake substantial reforms to the framework of policy, regulation and oversight of the financial system. There was a case for reform before this crisis. The regulatory framework in the United States was designed in a different time for a very different type of financial system than the one we have today.

Significant findings from the survey were that 66.3% of the Zambian adult population did not have access to financial services and that only 33.7% used banks, other formal and informal financial services and products (such as those offered by microfinance and savings clubs). Above all, only 15% of the adult population had access to commercial banking services. This low level of financial access therefore constitutes one of Zambia’s main challenges in facilitating economic empowerment of every citizen. Arising from these findings, the Government has since set targets or performance monitoring indicators. One such target is to increase the level of access to financial services to 48% by 2008 and 50% by the end of 2009. Following the earlier survey, a subsequent study called the “Finscope Supply – Side Survey” was conducted in 2007. Some of the key findings were that: a.  bank charges are unaffordable for 90% of the rural adult population in Zambia;  b.  Zambian banks generally have high operating costs and interest rate spreads; and  c.  the physical coverage of financial outlets may not increase at current cost levels. It is therefore, my hope that this Forum will address these and other challenges that slow the pace of financial inclusion in our countries.
The will to pursue a given business activity and succeed is critical if promising ideas are ultimately to evolve into marketable products or processes. Switzerland cannot be truly ambitious without ambitious entrepreneurs, and surveys suggest that the country still has room for improvement here. Against this backdrop, steps should be taken to cultivate innovative drive and entrepreneurial thinking early on, for instance by encouraging high school students to do projects in which they found their own small companies. Various universities already run programmes designed to assist young researchers in bringing innovative products and services to market. Private initiatives also play a significant role in nurturing entrepreneurship in Switzerland, helping young people learn how to transform an idea into an innovation and operate a business. 1/1  BIS central bankers' speeches

More likely, Southeast Asia and China will complement each other in an international division of labour, for example, with Southeast Asia providing the components and intermediate processing, and factories in China doing the final assembly for the Chinese market. The desire of MNCs to diversify their investments beyond one or two countries will also promote such an outcome. For our part, Singapore is actively positioning itself to benefit from China’s growth. When Chinese Vice President Hu Jintao visited Singapore recently, he proposed four areas for increased bilateral cooperation: high-tech industrial sectors, the economic development of China's western provinces, helping Chinese enterprises to exploit international opportunities, and the training of personnel and exchange of talent. Officials from both countries are pursuing these ideas. To help Chinese companies go international, Singapore has mooted the idea of setting up a base in Singapore to help Chinese companies market their products to the region and beyond. We are actively facilitating Singapore business ventures interested in China, providing market information, office space and consultancy services, and maintaining business networks. We have also launched an Asian Business Fellowship Programme, to develop a talent pool with operational experience, and network and market knowledge in China. Politics & Security Second, Southeast Asian governments must tackle the security problems resolutely and decisively. Terrorism is not unique to Southeast Asia. It is a global problem, originating in the Middle East, and spreading to every continent. Southeast Asia cannot be immunised against the terrorism virus.
At the same time, we can see rising price pressures in some industrial nations, particularly the United States, which are partly – but not solely – a consequence of the high oil prices gaining greater impact in the production and consumer segments. It is important to monitor whether the slackening tendencies seen in economic activity recently are temporary or more persistent. If we were to see a notably poorer development than we envisage now, such as much lower growth than forecast, the arguments in favour of cutting interest rates would in my opinion take on greater substance. We will be considering all of these factors at our next monetary policy meeting on 20 June. Thank you! BIS Review 37/2005  5

This will go a long way in enabling your customers not only access affordable funds to finance their investment activities, but also make it easier for them to pay back their loans and on time. The key intermediation role of the banking sector in providing finances will remain compromised if the costs of banking remain high. Distinguished Ladies and Gentlemen, as already mentioned, Zambia is currently going through challenging times when commodity prices remain subdued as result of uncertain demand for our main export product, copper. The visible effects of the economic global crisis have been volatilities in the exchange rate and job losses in the mining sector. The Second round effects, if not managed properly, could have devastating effects in our banking industry, especially through some notable deterioration in the personal loans category of the banks’ loan book. It is my expectation that Stanbic Bank Zambia Limited and other banks’ will enhance prudence in their lending activities and strengthen their risk management systems as a way of minimising further deterioration of the banking industry’s loan portfolio. It is also my firm belief that banks will continue to conduct safe and sound practices even under challenging times and therefore help to mitigate the risks that the financial system is currently facing from the adverse developments in the global economy and the global financial system in particular.