samchain/econo-pairs-v1 huggingface dataset:
But the reasons for prudent management of gold reserves by central banks are, in our view, of utmost importance. Central banks are typically “risk averse” when investing their foreign assets on the financial markets; as far as gold management is concerned, an even more cautious attitude is required because of the characteristics of the gold market. Central banks must be aware that their deposits may favour the financing of speculative gold sales. In other words, for a speculator (or a producer) who wants to take a position against gold, it would be very easy to be short because he can easily borrow from the official sector, which is a potential lender on this market. The result of this policy then would be a drop in the price of gold. BIS Review 61/2000  2  Furthermore, lending is even more delicate for a big holder: what is the use of lending if, at the same time, you are depreciating the value of your holdings? This question is effectively not the same when you hold 3,000 tons as when you hold 300 tons. Consequently, our policy regarding gold lending could be expressed as follows: a responsible holder must have a responsible approach to management. This means that the Banque de France has to and does pay due attention to the trade-off between its own interests (ie enhancing the return on its assets) and the impact on the market. The gold market characteristics described earlier call for a cautious and coherent attitude. B.

Needless to say that it is the same in Germany and in all the other countries of the Monetary Union. For this reason, we all fully subscribe to the recent declaration of the President of the ECB, Wim Duisenberg: “European citizens can be assured that the future of the euro is that of a strong currency, based on price stability and the strength of the European economy”. 7  BIS Review 61/2000
Despite the initial reluctance of a part of the public administration employees, the withdrawal of payrolls through the bank accounts has now turned into as common as any other services provided by the private market. The channelling of pensions through the bank accounts has met with certain complications, since the small amounts and the high circulation do not make them very attractive for the commercial banks. The licensing of the post for carrying out certain banking services has resulted to be a good solution for this issue. The larger involvement of the private business in this process remains a challenge. In this context, the encouragement of channelling the payments through the banking system is a crucial step to be taken. The requirement of a rigorous application of the obligation that (small, medium and large) businesses have to open and operate with the bank accounts would not only serve to reduce cash but also to reduce the informality. 2. Monthly utility payment (electricity, water, telephone) through the bank accounts  The monthly utility payment is now made through banks. However, this is limited only to the clients of the bank the utilities have their account in. The holding of these utilities’ accounts with all the banks in the system, or the finding of a kind of interbank cooperation would not only serve to increasing the amount of payments channelled through banks, but also to enhancing the competition. Another difficulty encountered in this context is the implementation of bank accounts direct crediting by the utilities.

Fatos Ibrahimi: The reduction of cash in the context of reducing the informal economy Speech by Mr Fatos Ibrahimi, First Deputy Governor of the Bank of Albania, at the Conference “Reducing the informal economy – a challenge of the Albanian Government”, Tirana, 16 October 2006. *  *  *  Since the inception of the programme undertaken by the Bank of Albania, in cooperation with the Ministry of Economy and the Ministry of Finance, on reducing cash, it came clear that the issue of cash in economy cannot be treated as separate from the issue of the informal economy. The companies, which try not to expose their activities to the third parties, will avoid banks and will find alternative sources of financing and payment, mainly in cash. Therefore, the Government initiative on reducing the informal economy is to be welcomed when bearing in mind the great impact it will have on reducing the cash economy. It needs to be said that the process of formalizing the economy has not been considered as an excuse for not undertaking a number of measures and initiatives, which may accelerate the progress of cash reduction. Among the actions undertaken in this context, I would mention:  1. The channelling of the state administration payrolls through the bank accounts  At this moment, the entire public administration payrolls are channelled through the accounts with the commercial banks.
Finally, the potential for the markets to function efficiently would be enhanced if the financial market is developed in an environment that enjoys financial stability, monetary stability and sustained economy growth. The MIFC initiatives To enhance the inter-linkages in the global Islamic financial markets, Malaysia is continuing its efforts to not only develop further the Islamic financial infrastructure but to also implement measures and initiatives that will strengthen our position as an international Islamic financial hub. The Malaysian Government is therefore launching an initiative known as the Malaysia International Islamic Financial Centre or MIFC. The MIFC initiative is specifically undertaken by the collective efforts of the country's financial and market regulators, including Bank Negara Malaysia, Securities Commission, LOFSA and Bursa Malaysia, together with the participation of the industry representing the banking, takaful and capital market in Malaysia. As part of the initiatives, Islamic financial products and services that are transacted in international currencies may now be conducted from anywhere in Malaysia. Malaysia has the physical infrastructure, international connectivity, the communication network, cultural offerings as well as the talents which is inherently advantageous to the MIFC. BIS Review 74/2006  3  In this first phase, the MIFC initiative will introduce measures and incentives to promote the centre in the offering of Islamic financial products and services by the diversified range of financial institutions in international currencies to the international and domestic financial community.

Access to the Internet as a national and global market place lowers the barriers to market participation. Opportunities are provided not only for economies of scale both nationally and internationally but also for the diversification, even individualisation, of goods and services. Market forecasts by international IT consultants predict that retail Internet commerce will grow from twenty to thirty billion dollars this year to several hundred billion dollars. And even this is dwarfed by prospects for business-to-business commerce, which involves asking for tenders on the Internet and matching the potential suppliers for increased efficiency. In an optimistic forecast from the American investment bank Goldman Sachs, this form of Internet commerce is predicted to expand to more than a thousand billion dollars by 2003 and to contribute a quarter of a percentage point to annual GDP growth in the coming decade. The fact that clear signs of improved productivity did not appear until almost a decade after Solow’s observation can be attributed to computers and IT being what is commonly referred to as general purpose technology, in the sense that they interact with and modify many other processes and techniques. The economic impact of such innovations is liable to take a long time. Parallels have been drawn with another innovation with far-reaching consequences, namely electricity. Although electricity began to be used in the late nineteenth century, its impact on productivity did not show up in earnest until the 1920s.
However, it was left to the Riksbank to determine the practical application of this objective. Our choice was to specify a quantitative target for the inflation rate: The annual increase in the consumer price index, CPI, should be two per cent with a tolerated deviation of +/- one percentage point. The purpose of a tolerated deviation is to make it clear both that inflation will deviate from the two per cent level from time to time and that the Riksbank's aim is to limit such deviations. The target is symmetrical, which means that it is as undesirable to have an inflation rate below the target level as above it. Many other countries also conduct monetary policy where they have formulated a price stability target in one way or another. The euro countries have chosen to maintain inflation at a level close to, but below, two per cent, in other words, a non-symmetrical target. The United States has taken a different view and chosen a vaguer wording for its target, with no figures expressed, as well as taking greater account of general economic trends. In New Zealand they have a target for inflation expressed in terms of an interval (1-3 per cent) but no exact figure. However, we have seen two clear advantages of having a clearly expressed target to aim for; firstly it provides a good foundation for inflation expectations and secondly it makes it easier to assess the policy conducted.

It is not possible to see the road ahead clearly and nor is it possible to know exactly what will happen if one puts one’s foot down on the accelerator pedal – only that the effect will come after a fairly long period of time. Why haven’t we cut the interest rate? Let me now return to the present situation and the question of whether it is reasonable to lower the interest rate in order to rapidly bring the present low inflation rate back in line with the target. The Executive Board’s reasoning at its most recent monetary policy meetings has been roughly as follows. Firstly, as I mentioned at the beginning, the Swedish economy has developed at an increasingly strong rate in recent years, and our analyses during the winter and spring have come to an assessment that this will continue. We have thus seen a rise in inflationary pressure at the end of the forecast horizon. If our assessment during this period had been that demand was declining, I believe the situation would have been different. Secondly, the present low inflation rate can be largely explained by what is known as positive supply shocks, such as increased competition, lower import prices and surprisingly rapid productivity growth. These factors benefit economic developments. To attempt to push up prices for domestic goods and services to counteract a decline in prices for imported goods is not necessarily a wise choice. Thirdly, monetary policy’s impact comes through influencing demand, primarily corporate investment and household consumption.
BIS central bankers’ speeches  5  Given our choice of the level for the key policy rate, the deviation from the inflation target will be somewhat larger and economic developments somewhat weaker in the short term than would otherwise have been the case. This cost can be regarded as an insurance premium against future adverse outcomes. The gains that we can achieve are that a downturn will be less pronounced should the economy be exposed to negative shocks. In addition, we can reduce the probability that imbalances trigger a crisis. The expected path for inflation and output becomes more stable. The size of the gains is uncertain. Developments in debt and house prices depend on a number of factors in addition to the interest rate. The extent to which the interest rate influences the build-up of imbalances may thus change from one situation to another. Even in retrospect it will be difficult to measure the gains. The size of the insurance premium will also vary. When inflation has strayed far from the target, the prospect of a further deviation will be given more weight than when inflation is close to the target. It is generally agreed among central banks that monetary policy must in certain situations take into account the risk of a build-up of financial imbalances. At the same time, Norges Bank has been one of few central banks where this consideration has played a clear role in interest rate setting in recent years.

If there are prospects that inflation will become too low at the same time as debt and house prices are rising, the key policy rate’s main task is to ensure that inflation is again brought up towards the target. Several economic policy instruments makes it easier to achieve several objectives at the same time. Stricter banking regulation helps reduce systemic risk, but we cannot act on the assumption that tighter regulation alone will suffice to prevent future crises. There is considerable uncertainty with respect to potential shocks that may hit the economy in the future. Turbulence can arise abruptly and from unexpected events. Hence, it is important to guard against particularly adverse outcomes. 5 In recent years, Norges Bank has chosen to keep the key policy rate at a level that has consistently been a little higher than implied by medium-term inflation and output considerations. Financial stability considerations have played a role, without asset prices or debt having an independent role as target variables. The goal has been to achieve an improved path for inflation, output and employment over time. Let me explain further. 5  See Adrian, T. and N. Liang (2014): “Monetary Policy, Financial Conditions, and Financial Stability”, Federal Reserve Bank of New York Staff Report No. 690, for a further discussion.
BIS Review 43/2003  1  The key constituents within the Islamic financial system, which includes the Islamic financial institutions as well as the capital and money markets need to be firmly reinforced by the legal and regulatory framework that adequately address the unique characteristics of the industry. These intradependent key components ultimately form the enabling environment for the Islamic financial services industry to effectively play its role as an efficient conduit for mobilising resources and channelling them to productive purposes. The absence of any one of the components could reduce the effectiveness and efficiency and could affect the viability and sustainability of the system. While the Islamic banking system plays an important role in mobilizing deposits and providing financing, the development of the capital market allows the corporate sector to source their long-term financing needs based on Islamic principles. In addition, it would increase the range of Islamic financial instruments available to meet the demand of the Islamic investors. In the absence of a comprehensive Islamic financial system with financial services based on Shariah principles, the development of Islamic banking and finance would be hindered. The government would need to assume an important role in the development of the Islamic financial system. The role of the government is, amongst others to provide the enabling environment and put in place from the outset, the necessary infrastructure through the formulation of a comprehensive set of legal and regulatory framework for Islamic banking and finance.

For the same reason, this phenomenon can act to mask or offset the effects of high levels of present and expected future government borrowing on interest rates, perhaps contributing to a false sense of reassurance that we can continue to run large structural deficits without risk of crowding out private investment and damaging future growth. BIS Review 18/2006  3  What might this mean for the conduct of monetary policy? To the extent that these forces act to put downward pressure on interest rates and upward pressure on other asset prices, they would contribute to more expansionary financial conditions than would otherwise be the case. And, if all else were equal, which of course is unlikely ever to be the case, monetary policy in the affected countries would have to adjust in response; policy would have to act to offset these effects in order to achieve the same impact on the future path of demand and inflation. To do otherwise would run the risk that monetary policy would be too accommodative, pulling resources from the future in a way that would alter the trajectory for the growth of the capital stock, perhaps amplifying the imbalances, and compromising the price stability. Finally, these aspects of global monetary arrangements and financial conditions have important implications for how we communicate about monetary policy. They strengthen the case for why central banks should be clear about their objectives and credible in their commitment to price stability.
Nevertheless, the public sector is now setting the course, and hopefully, in a couple of years, a cross-border payment will be almost as frictionless as a domestic payment. That should at least be the aim, I think. Building payment systems for our grandchildren Allow me to offer some concluding remarks. History has taught us many things. Trust and uniformity, technology and innovation, network and scale effects, and the division of responsibilities of the public and private sector are fundamental drivers of the payments market. The speed of innovation is faster than ever, pushing the Riksbank to adapt and respond to the evolving world around us. This is why we are now updating and modernising our services. We will soon launch RIX-INST for instant payments. In addition to that, we have made a decision to take preparatory steps to connect the Swedish krona to the Eurosystem’s T2 and T2S platform. We are heavily involved in international work to enhance cross-border payments, and we are carrying out investigative work on a potential e-krona. In my view, all of these decisions follow a long Riksbank tradition of providing a forward-looking, cost-effective and secure payment infrastructure. 15 [15]

Moreover, the fall in demand probably reflects adaptations among households and businesses in the wake of the sharp rise in oil prices up to summer. A stronger dollar, heightened uncertainty and reduced willingness and ability to take risk among financial investors in the futures market for oil may also have contributed to the fall in oil prices. 2  BIS Review 143/2008  Commodity prices have dropped sharply since summer. Lower metal prices reflect lower global growth prospects. It may almost seem as though that there has been a bubble in oil and commodity markets which has now burst. The fall in energy and commodity price has resulted in a weakening of Norway’s terms of trade. Foreign exchange markets have also been volatile. Interest among investors has shifted away from carry trade to more liquid currencies or own currencies. Since June, low-interest currencies, such as the Japanese yen and the Swiss franc, have appreciated while highinterest currencies, such as the Australian and New Zealand dollar, have depreciated. The US dollar has appreciated from low levels. The krone exchange rate has depreciated since end-June. This partly reflects the financial market turmoil. Low risk willingness had induced investors to scale back their positions in less liquid currencies such as the Norwegian krone. The fall in the price of oil and other commodities has probably also contributed somewhat to the depreciation. The krone exchange rate is expected to appreciate gradually when financial market conditions improve.
The MPC set out its collective assessment of the potential issues that a negative policy rate in the UK could raise, and how that might impact the effectiveness of negative rates as a monetary policy tool, in its August 2020 Monetary Policy Report.13 I won’t repeat all of the analysis from the Report; instead I want to draw out three key points. The first is that the effective lower bound is likely to be different across different countries, reflecting different macro-economic circumstances, structural features and financial systems. This is a simple point but an important one. Just because negative rates are appropriate in one country does not mean they would be appropriate in another, and for some countries and in some circumstances the effective lower bound may well be positive. The second point is that while some aspects of the transmission mechanism would be the same as any other rate cut, others could be quite different. In all use-cases, market interest rates would fall, asset prices would rise and the exchange rate would depreciate, and that would stimulate demand and raise inflation in the usual way. But evidence from other countries’ experience suggests that while corporate deposit rates can turn negative, household deposit rates would be unlikely to fall below zero, meaning that pass-through could be somewhat weaker than for a normal rate cut. Building on this, the third point I want to draw out is that there can be knock-on economic effects through the banking system.

And, in this regard, the link between the access to funds and the implementation of reforms should be seen as a crucial incentive. Allow me to also highlight the importance of insisting on a European, medium-term, economic growth-enhancing agenda. In this context, recent energy market developments and the global value chain bottlenecks highlight the importance of reflecting on the principles and way forward for achieving a European “strategic autonomy”. EU-wide structural policies promoting European integration and strengthening the single market will also make our economy more competitive internationally. The Important Projects of Common European Interest, developing new batteries and microelectronics, and those under way in the fields of Hydrogen and Cloud Infrastructure and Services, supported by NGEU funds, are good examples of this. Nevertheless, while it is important to promote these developments from a 8  European perspective, we should also keep in mind that increasing the scale of these projects might generate divergences across Member States. In order to make this compatible with a level playing field and to extract the advantages of economies of scale, it is therefore necessary to fundamentally improve our risk-sharing mechanisms and move further and faster towards a frictionless single market, both for capital and for labour. Banking union and capital markets union The final elements of reform I would like to mention today relate to the completion of the banking and capital markets unions.