samchain/econo-pairs-v1 huggingface dataset:
The growing reliance on short-term wholesale funding to finance longer-term assets increased liquidity and maturity mismatch risk. This was particularly dangerous because many of the assets being financed were structured-credit products, some of which were opaque, difficult to value and illiquid. Short-term funding of longer-term assets is inherently unstable particularly in the presence of information and coordination problems. It can be rational for a provider of funds to supply funds on a short-term basis, reasoning that it can exit if there is any uncertainty over the firm’s continued ability to roll over its funding from other sources. But if the use of short-term funding becomes sufficiently widespread, the firm’s roll-over risk increases. In this situation, there is a strong incentive for each lender to “run” if there is any uncertainty that could undermine the borrower’s ability to continue to roll over its funding from other sources. This is the case even if the provider of funds believes that the borrower would remain solvent as long as it retained access to funding on normal terms. Of course, this insight is not a new one. Prior to the establishment of a lender of last resort and retail deposit insurance for banks – which came with the quid pro quo of prudential regulation – bank runs were a regular and disruptive feature of our financial system. These innovations solved the coordination problem and stabilized this source of funding.

William C Dudley: Fixing wholesale funding to build a more stable financial system Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York and Chairman of the Committee on the Global Financial System (CGFS), at the New York Bankers Association’s 2013 Annual Meeting and Economic Forum, New York City, 1 February 2013. *  *  *  As prepared for delivery. Thank you for having me here to speak today. As you all know from daily experience, the financial system plays an essential role in modern economies. Because financial intermediation is critical to economic activity, disruption to it can cause severe damage to the economy. The experience of recent years revealed serious flaws in the system. Risk was mispriced and there was a build-up of excesses before the crisis. Structural weaknesses in the financial system then amplified the effect of the bursting of the bubble in U.S. house prices, and the result was a widespread financial crisis. One critical factor was the extensive use of short-term wholesale funding in the years leading up to the crisis. Not only did this aspect of our financial system create the potential for a firm to fail in an extraordinarily rapid manner when faced with a loss of market confidence, but it also served as a channel through which the effects of those failures were widely propagated throughout the broader financial system.
The number of countries engaged in this global event and consequently the number of the involved of children and young people has been trended upwards. This year, GMW will take place in around 175 countries and will involve around 40 million children and young people. The global health and economic emergency caused by COVID-19, and its social effects have affected almost all aspects of life to all age groups of the society. We know that different age groups are experiencing these effects in different ways. Hence, related to students and younger people, in addition to health aspect, the pandemic has posed to them challenges in the field of education and employment. For these reasons, it is more important and relevant than ever, to provide them with the required knowledge on the personal finance management and the correct use of banking products. In this context, the theme of this year competitions and activities to take place is “Take care of yourself, take care of your money”. This theme highlights the crucial importance of knowledge in an evolving digitalised and innovative market, which enable people to avoid physical contact while using the financial and banking products, hence providing for a better protection of public health.

In addition, for those who opt for deeper information and knowledge, our website provides didactic tools to better understand aspects of economy and finance which affect the life of all citizens, like: what is economic growth; labour market, circulating flow, how do financial crises spread; what is competition, etc. Also, the elective module “Personal Finance in Your Hands", from some years now integrated in the high school teaching curricula, introduces to students the world of personal finance, informs and shape their needed skill to manage money in a more profitable way. This textbook is supplied and allocated for free to all high schools which elect to study it. It is accompanied with a guideline to teachers of economy subject. A similar approach has been adopted for younger children. Hence, the teaching package tailored for the financial education of pupils in class I, II and III of secondary schools, addresses issues, as: the difference between needs and desires; where does money come from and for what does it serve; the right management of money and savings, etc. This package may be used in free classes; classes dedicated to school projects; or in intra-subject projects. All that I mentioned above, makes clear that the Bank of Albania assesses that financial education should start at an early age. This affirmative sentence constitutes the philosophy of our programmes. The Bank of Albania aims at building up the communication bridges, awarenessraising and financial knowledge empowering to the new generation.
This is slightly higher than the national average of 3.9 per cent. Even though the region has somewhat higher unemployment than the national average, the rise in unemployment in Northern Norway has been relatively low in the last year. Finnmark is one of the four counties in Norway to record the sharpest fall in unemployment over the past year. This snapshot report on the current situation in this part of the country and similar reports from the other regions provide information that is important to interest-rate setting. The labour market has improved. The number of persons employed in Norway began to increase in summer 2003 and unemployment stabilised. Employment in distributive trades has increased. There are also signs that employment is rising in service sectors such as education, the public sector and health and social services, from the weak levels recorded in the first six months of last year. Manufacturing employment remained well below the level one year earlier in the fourth quarter of 2003, but is falling at a slower pace. Unemployment has been fairly stable. Adjusted for seasonal variations, LFS unemployment stood at 4.4 per cent of the labour force in January. Growth in household demand, petroleum investment and increased activity in the business sector are paving the way for a rise in employment in the period ahead. On the other hand, intensified competition and continued rationalisation in the business sector may have a dampening impact on labour demand.

According to Table 1, mark-ups will have been adding, on average, over one percentage point each year to measured inflation rates across the G7 countries between 1980 and 2016, other things equal. As context, over the same period average G7 8  inflation rates have fallen by over 10 percentage points. A second potential macro-economic impact of higher mark-ups is on sales. Higher mark-ups will, other things equal, have pushed down on aggregate demand and generated a deadweight loss of consumer surplus (“Harberger triangle”). Baquee and Farhi (2018) estimate the size of this effect and find that eliminating mark-ups entirely would raise aggregate US total factor productivity (TFP) by as much as 35%. 9  To better understand some of the drivers of higher mark-ups, it is useful to look at more granular data. Using a similar approach to De Loecker and Eeckhout (2017, 2018), we draw on data for around 3,500 unique UKlisted companies from the late-1980s to construct around 33,500 firm-year mark-up estimates. 10  Using that  methodology, Chart 3 plots a sales-weighted measure of mean mark-ups for UK-listed companies since 1987. It shows a striking rise, from 1.2 to around 1.6, over the period. This broadly mirrors international trends.
The establishment of a national platform for processing card payments - would to provide a direct impact on reducing high costs and improving the current card processing practices, due to the extended cycles and involvement of more actors in the process. Such a platform would also support innovative services, such as mobile payments and e-wallet. The Bank of Albania is analysing the possibility to develop instant payment in our market as well. The implementation of such a project is deemed to have a direct impact on financial inclusion and on providing services at low cost. I invite you to actively participate in  discussions, in order to benefit as much as possible by the experience of other countries, and to analyse the possibilities presented by service providers that are invited to discuss on these topic in the afternoon session. Furthermore, regarding financial inclusion, the strategy pays special attention to the establishment of the concept of “basic” bank accounts with low costs, for the financial inclusion of all levels of population, irrespective of their economic situation. Last but not least, innovation in public services. The initiatives that digitalise and automate public services need coordination and access to various data electronic platforms, such as data of: citizens; addresses; and payments for these services. Any development should be accompanied with financial education of the population, as a precondition for success.

The discussions in this Conference bring to the fore the views and experience of various actors from different countries (regulators, developers, service providers, authorities and experts) and I think this will shed light on the key topics of modernising the retail payment systems in Albania. Thank you! 2/2  BIS central bankers' speeches
Since the financial crisis all major advanced economies have been in a debt trap where low growth deepens the burden of debt, prompting the private sector to cut spending further. Persistent economic weakness damages the extent to which economies can recover. Skills and capital atrophy. Workers become discouraged and leave the labour force. Prospects decline and the noose tightens. 1  At market prices. In PPP terms it is third largest after China and the US. BIS central bankers’ speeches  1  As difficult as it has been, some countries, including the US and the UK, are now escaping this trap. Others in the euro area are sinking deeper. This relative performance underscores the importance of policy and institutions, particularly those that share and transfer risks. Building institutions at a time of reform fatigue may not be easy, but it is essential. Before I draw out this crucial point, I would like to quickly review how we got here. 2. Setting the debt trap  Building the debt that now weighs on our economies was the work of a generation. In the decade before the crisis, private financial balances became unsustainable. UK households borrowed 4% of GDP year after year; Irish households at more than twice that rate. Household debt peaked close to 100% of GDP in the UK, and 120% in Ireland. 2 This borrowing was largely for consumption and real estate investment rather than businesses and projects that would generate the earnings necessary to service those obligations.

This all suggests that investors may be attaching some probability to very bad outcomes, possibly the tail risk of economies becoming stranded in a debt trap. This market view is mirrored in elevated corporate caution. Investment remains subdued and businesses continue to build cash in many advanced economies. 6 This is one reason why the so-called “equilibrium” real interest rate is negative in many advanced economies, though it has risen and is possibly now positive in others like the UK. 7 Reflecting these real dynamics, central bank interest rates have had to be set at extraordinarily low levels and supplemented by large scale asset purchases simply for monetary policy to remain neutral. 8 Escaping a debt trap requires a suite of measures including structural reforms to boost productivity. But above all an economy needs to be able to channel all available savings – household, corporate and foreign – to those sectors willing and able to spend. In many respects, recent progress in the UK shows how. 3. How the UK is escaping its debt trap  In recent years, the UK economy has shown increasing signs of normalisation. Non-financial private debt has fallen by around 30% of GDP since its peak, the economy has grown consistently above trend, and unemployment has fallen from a peak of 8.5% to less than 6% today. This performance underscores several structural features necessary to escape a debt trap. The first is an integrated financial system which channels savings from one part of the economy to investment in others.
Sources: OECD and the Riksbank  BIS Review 56/2010  15  Government bond rates of different countries Percentage points 10  10 Sweden Germany Portugal Ireland Italy Greece Spain  9 8 7 6  9 8 7 6  5  5  4  4  3  3  2  2  1  1 0  0 06  07  08  09  Note. Government bonds with approximately 10 years left to maturity. 16  10  Source: Reuters EcoWin  BIS Review 56/2010

According to McKinsey, net zero by 2050 would require about $ trillion of investment per year but only about $ trillion per year is being invested today. We are more than 35% short of the annual investment required for net-zero. Let's keep these two numbers in our minds throughout our discussions today: we are 55% below the emissions reduction required by 2030 and 35% below the investments required for net zero by 2050. Filling these two gaps will require a concerted and collaborative effort across the ecosystem. And it needs to be done now. Climate change is already happening and beginning to devastate lives and livelihoods. Just ask the people in Pakistan. There is no collective human endeavour more urgent than climate action. Delaying mitigation efforts to avoid short-term costs will incur a much larger economic and human loss in future. This conference will focus on three key dimensions: Transition, Asia, Collaboration. Let me elaborate. Transition - to reach net zero by 2050 we need effective and inclusive transition strategies. 1/4  BIS - Central bankers' speeches  Effective transition is about greening the entire economy not just growing the green economy. Investing in green technologies and renewable energy is important. But such pure green activities are estimated to make up less than 8% of the global economy. To move the needle towards net zero, we must progressively decarbonise across all sectors of the economy, including hard-to-abate ones like steel, cement, and maritime transport. This means green finance alone is not enough.
For a small open economy like Switzerland, we have seen that there are considerable advantages in having a definition of price stability that anchors inflation expectations at a low level while at the same time allowing a certain degree of flexibility with regard to the accepted inflation rates. In our monetary policy strategy, we define price stability as a rise in consumer prices of less than 2% per year. Deflation – that is to say a sustained decrease in the price level – also breaches the objective of price stability. We thus do not have a point target in our definition of price stability, and we do not seek to achieve a specific value between 0% and 2%. Furthermore, the SNB focuses on the medium-term inflation outlook, which means that negative inflation or inflation rates in excess of 2% can also be temporarily permitted. In recent years, there has been intense debate in academic circles and also at central banks on how to best set inflation targets or define price stability. Some central banks have also adjusted their inflation targets. These adjustments have been primarily aimed at reducing potential constraints on the ability to take monetary policy action resulting from the low interest rate environment. Would adjusting the definition of price stability also make sense for the SNB? We are firmly convinced that our definition of price stability has proved its worth, even under the difficult circumstances of the past 15 years.

An insurance company like GE Life, which is located in the heart of a dynamic growth region, is well-positioned to capture the growing opportunities. Achieving sustainable long-term growth, however, is highly complex. Among the many segments in financial services, the life insurance industry has probably the longest time horizon. The industry takes on assets and liabilities that literally last a lifetime. Good actuarial data and analysis provide an important basis for risk pricing and management. But future trends and developments such as increasing longevity or medical breakthroughs are harder to predict. Hence, a sound framework on asset-liability management and a continual focus on risk management are critical. At the same time, markets are changing and innovating rapidly. Competition comes from many sources, while the needs of customers will continue to evolve. To keep up with the competition, intermediaries have to continue to invest in research and development, and provide value-adding products and services in risk management, underwriting, actuarial analysis, investment and financial advice. This is especially important in the context of Singapore’s maturing population who will need good retirement planning services in order to remain financially independent through their golden years. Another key implication of the long time horizon is the special relationship with the policyholder. In general, both the insurance company and the policyholders are entering into a long-term financial commitment. In any long-term relationship, the quality of trust is of utmost importance. This relationship of trust can only be sustained by good advisory and sales practices.
Transparency may be reduced if it is unclear why supervisors set certain requirements for one bank, and a different requirement for another. Allowing a discretionary approach in the absence of the other pillars also makes it difficult to ensure a level playing field, since banks would not necessarily be held to the same standards. That would certainly harm competitiveness across jurisdictions, and possibly even within the same jurisdiction. So the third pillar, market discipline, adds greater transparency. When a bank discloses information that offers meaningful insight into its risk positions and exposures, marketplace participants can better assess the financial health of the institution. They can then provide economic incentives for banks to strengthen their management of risk and hold realistic levels of capital against their risks. One might say that Basel II seeks an “efficient frontier” of policy objectives through the three pillars. Each pillar provides something that the other two cannot, and each is essential to achieving our overall objective of financial stability. I realise that this analogy of the three pillars as a portfolio of policy options is an oversimplification. But it helps us visualise why we think that the most “efficient frontier” involves a mixture of minimum rules, tempered by supervisory discretion, and supplemented by market-based incentives. IV. Consistency of accounting standards and Basel II  Of course, it would be impossible to improve transparency and promote stability without examining the mechanics that define how financial data are recorded and reported.

In any case, whatever the financial  2  BIS Review 48/2009  outcome, it must be borne in mind that the only motive behind our intervention was to keep the uncertainty with regard to the value of UBS’s illiquid assets from destabilising the bank and thereby our financial system and economy. When public funds are employed to restore financial stability, the rules governing the functioning of markets need to be adapted to ensure that such a situation can never arise again. We therefore strongly supported the SFBC’s stance in favour of a gradual strengthening of the big banks’ capital levels, of capping their leverage ratios and reforming their compensation systems. In addition, the SNB is currently working together with FINMA to impose more stringent liquidity requirements. As I already pointed out last year, a small country like ours is entitled to define specific conditions under which the systemic risks involved with having two large international banks domiciled on its territory must be limited. The Federal Council and the SFBC clearly recognised this situation and took appropriate preventive measures. For the future, it would also be advisable to examine the expediency of putting into place a legal framework and organisational measures that permit an orderly liquidation of systemically important banks. The crisis spreads to the real economy Ultimately, it was inevitable that the financial market crisis would spread to the real economy. And yet the year 2008 began well.
The road will no doubt be long and arduous. Chart: Yields on 10-year government bonds But the situation across countries differs considerably and is reflected in wide yield spreads. Investors now demand substantial premiums for investing in less safe assets. Capital is seeking safe havens, even though real returns on presumably risk-free investments are low or negative. Wide yield spreads may persist for a period – it takes time for countries to restore competitiveness and build up stronger balances, particularly when growth is also weak in other regions. Substantial economic imbalances in Japan and the US also need to be redressed. Turbulence and bad times in Europe are now dampening activity in these countries and in emerging economies. This situation has led to the emergence of new forms of monetary policy in many parts of the world. Interest rates have been low – close to zero – for a long period. The Federal Reserve has indicated that the federal funds rate will most likely be exceptionally low at least until mid-2015. In the event, the US key rate will have been close to zero for almost seven years. As key rates cannot be lowered further, several central banks have decided to apply other methods. The methods fall into two main types: The first method relates to communication. Statements concerning the future central bank key rate are being employed as a new monetary policy tool.

All this had a marked downward effect on domestic demand. The drop in output—almost 6 per cent in the course of three years—meant in turn that government finances worsened dramatically. From a surplus at 4.2 per cent of GDP in 1990, the budget balance swung to a deficit of 12.3 per cent in 1993. In this period, moreover, registered unemployment shot up from 1.7 to 8.2 per cent. In a way, the economic crisis in the early 1990s can be said to have been generated by political decisions. The combination of a stabilisation policy realignment with some structural reforms did play a part in the course of the crisis. But it should also be underscored that such measures were broadly essential. The problem was not so much the measures that were implemented when an inflationary bubble had already developed as the fact that policy had not been realigned earlier. In recent years, economic developments in Sweden have been favourable. Growth has been stronger than in the high phase in the late 1980s and it has proved possible to combine good growth with low inflation. A couple of years after the realignment of economic policy, inflation had fallen BIS Review 47/1998  -2sharply to around 3 per cent. Moreover, the reduction of current inflation has been accompanied by a downward revision of inflation expectations. Today, neither households, firms nor financial market agents perceive any serious threat from inflation in the coming five years.