samchain/econo-pairs-v1 huggingface dataset:
Prior to these periods, the manufacturing sector’s competitive position had weakened. The fiscal rule is useful in that it gives weight to long-term considerations when addressing day-to-day economic policy challenges. The fiscal rule stabilises enterprises’ expectations as to competitiveness and the krone exchange rate. This can prevent abrupt and pronounced swings in the structure of the economy. If the government authorities disregard the rule, enterprises will lose an important reference. A policy rule can make matters worse if economic agents have drawn up long-term plans on a faulty basis.1 The current cost level in the Norwegian business sector is adapted to an expansion of the petroleum sector and a steady phasing-in of petroleum revenues into the mainland economy. Costs rose sharply from the mid-1960s to the mid-1970s and reached a very high level. In subsequent years, costs have varied around this level. After a period, we will be able to cover a smaller share of our imports using current petroleum revenues and drawings on the Petroleum Fund. Competitiveness will then have to be improved – perhaps to around the level prevailing at the end of the 1960s prior to Norway’s emergence as an oil nation.2  The labour market Compared with other European countries, income formation in Norway has been fairly flexible. Wage growth has declined rapidly when unemployment has risen. This is why unemployment has not taken hold at a high level. The favourable results partly reflect the considerations underlying the wage settlements at a centralised level.

Similarly, if you went to your personal lawyer and overheard him refer to you in conversation with his associate as a “counterparty,” rather than as a “client,” would you worry? You should. My point here is not that banking is a profession like medicine or law. My point is about how you see your customer and the service provided to that customer. A counterparty is not someone needing your help; “it” represents a profit opportunity – something to be exploited. Their loss is your gain. A customer, by contrast, is someone to be served. It is right to charge a fee to a customer, client, or patient, but the transaction is driven by the other person’s needs. Many financial services firms, however, refer to the people they do business with as counterparties. This is no accident. It characterizes the way in which the organization views the person it is facing in its businesses. Viewing customers as profit opportunities is inconsistent with a strong ethical culture. In my experience, firms that consider their operational model as service provider tend to have a better culture than those firms that consider their operational model as money maker. The second item that I would leave out is a conception of a bank as a money making machine. This is not to say that I would ignore profitability; that would be foolish and would destine a firm to a short life.
As a complement to a good corporate governance structure, credit institutions should be equipped with a sound risk culture. Such a culture should infuse the design and workings of the organisation and its management criteria, systems and methods; it should be founded on control procedures whose reliability has been duly tested; and its application should be overseen by departments possessing sufficient power and independence. All this should be substantiated by internal and external auditors and be highly visible to the market. Finally, I would like to stress the need for all types of financial institutions to apply due diligence. They should know their clients and systematically monitor their operations so they might prevent, and where necessary curb, not only money laundering and the funding of terrorism but also any other attempt to use the financial system for illegal or unethical purposes. Beyond the obligation all individuals and corporations have to observe and comply with the law, good practices in this area have an important supervisory dimension, as they play a decisive role when preventing or curbing such serious risks as those pertaining to reputation, legal risk, and so on. Despite the unquestionable importance of market discipline and good corporate governance, these are complements to banking supervision and, therefore, cannot replace it in respect of its essential task, namely "to promote the sound functioning and stability of the financial system", as stipulated in article 7 of our Law of Autonomy.

Michael C Bonello: The Maltese economy – the recession and the challenges beyond Speech by Mr Michael C Bonello, Governor of the Central Bank of Malta, to the Committee on Economic Affairs and Development of the Parliamentary Assembly of the Council of Europe, Attard, 28 May 2010. *  *  *  With a GDP of € billion and a population of around 400,000 living in an area of 316 km2, Malta is the smallest and most densely populated country in the EU. With an average tradeto-GDP ratio of 82% since membership in 2004, it has the second most open economy in the Union. Malta’s business cycle is closely synchronized with that of its main trading partner, the EU, which accounts for 61% of its exports of goods and services. The small size of the country necessarily implies a narrow export base and a dependence on strategic imports, such as fuels and industrial supplies. These characteristics constitute a challenge for policymakers in that the economy’s performance is highly sensitive to external events and to sector specific shocks. The impact of the recession It was thus inevitable that the headwinds unleashed by the global recession would test the resilience of the Maltese economy. Although euro area membership helped to cushion the impact, as expected in such an open economy the shock was transmitted primarily through the trade channel as external demand shrank. The downturn was particularly pronounced in tourism and manufacturing, two sectors that are highly dependent on demand abroad.
But in an uncertain world, France appears as a rather stable country, seen from the resilience of its economy, the strength of its financial sector, as well as the solidity of its political institutions. 3/3  BIS central bankers' speeches

The IMF has highlighted that global banks and financial institutions have yet to recognize more than half of their total estimated write-downs of $ trillion. So far, growth has been supported by the massive monetary and fiscal stimulus. Indeed, studies of past crises suggest that economic recoveries in the aftermath of financial crises tended to be protracted. Many analysts therefore expect global growth to be slower in the coming years. 5. Against this backdrop, what should be the growth strategies of emerging economies, and what is the role of financial institutions, especially Islamic financial institutions? 6. Even with slower global growth, emerging Asian and Middle Eastern economies are expected to grow at higher rates than advanced economies. There are many positives working in their favour – abundant natural resources and monetary reserves; young and dynamic populations, growing consumer demand, large infrastructural programmes underway in some areas like water, energy, transport, education and healthcare. Generally, balance sheets of corporates and households are in better shape than it was in earlier years. 7. With the growing importance of emerging economies, we will see changes in the patterns of trade and development. There will be stronger “south-south” trade. The old pattern of “flying geese” development in Asian newly-industrialised economies, where developed economies bring in investment and technologies, will give way to a more variegated pattern, where companies in the emerging markets will invest in other markets. We already see many corporates from emerging markets developing disruptive technologies and business models that address market needs in very competitive ways.
Mario Draghi: ECB press conference - introductory statement Introductory statement by Mr Mario Draghi, President of the European Central Bank, and Mr Vítor Constâncio, Vice-President of the European Central Bank, Frankfurt am Main, 21 July 2016. *  *  *  Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council, which was also attended by the Commission Vice-President, Mr Dombrovskis. Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. We continue to expect them to remain at present or lower levels for an extended period of time, and well past the horizon of our net asset purchases. Regarding non-standard monetary policy measures, we confirm that the monthly asset purchases of € billion are intended to run until the end of March 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. Today we discussed developments since our last monetary policy meeting in early June. Following the UK referendum on EU membership, our assessment is that euro area financial markets have weathered the spike in uncertainty and volatility with encouraging resilience. The announced readiness of central banks to provide liquidity, if needed, and our accommodative monetary policy measures, as well as a robust regulatory and supervisory framework, have all helped to keep market stress contained.

As in previous months, annual growth in M3 was mainly supported by its most liquid components, with the narrow monetary aggregate M1 expanding at an annual rate of 9.1% in May, after 9.7% in April. Loan dynamics followed the path of gradual recovery observed since the beginning of 2014. The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) increased to 1.4% in May 2016, compared with 1.2% in April. Developments in loans to enterprises continue to reflect the lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non-financial sector balance sheets. The annual growth rate of loans to households (adjusted for loan sales and securitisation) remained broadly stable at 1.6% in May, after 1.5% in April. The euro area bank lending survey for the second quarter of 2016 indicates further improvements in loan supply conditions for loans to enterprises and households and a continued increase in loan demand across all loan categories. Furthermore, banks continued to report that the targeted longer-term refinancing operations had contributed to more favourable terms and conditions on loans. The monetary policy measures in place since June 2014 have significantly improved borrowing conditions for firms and households, as well as credit flows across the euro area. The comprehensive package of new monetary policy measures adopted in March this year underpins the ongoing upturn in loan growth, thereby supporting the recovery of the real economy.
William C Dudley: Remarks at panel discussion on OTC derivatives reform and broader financial reforms agenda Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the 2013 OTC Derivatives Conference, Paris, France, 12 September 2013. *  *  *  It is a pleasure to be here. Who wouldn’t want to be in Paris – anytime – let alone in September? My comments today will focus on how over-the-counter (OTC) derivatives reform fits in with the broader financial reform agenda and those aspects of the reform effort in OTC derivatives that could potentially fall short relative to those broader objectives. My short answer, which I will elaborate on in my remarks, is that the OTC derivatives reform effort fits in very well with the broader reform agenda, but there are significant risks that we will fall short in this arena relative to what we are likely to achieve elsewhere. As I see it, the G20 reform effort for OTC derivatives has three broad goals:   Reduce systemic risk with respect to OTC derivatives activities;    Improve the ability to aggregate and analyze over-the-counter derivatives OTCD risk exposures across markets, institutions and product classes; and    Improve competition and protect against market abuse. Systemic risk is being reduced in a number of different ways.

If a private player were to run such a system, all participating banks  18 Swish is owned by Getswish AB but administrated by Bankgirot. 19 As of April 2018. Current statistics on payments can be found on the Riksbank’s website, www.riksbank.se/sv/finansiell-stabilitet/betalningssystemet-rix/statistik-over-betalningar-i-rix/2018/. 7 [15]  would have large claims on that player, just as they have on the Riksbank at present. If such a private player were to enter bankruptcy, this money would be lost. That risk does not exist when the central bank runs the system. In addition, the central bank can supply the necessary liquidity that allows payments to function without friction. The central bank can thus function as ‘the banks’ bank’. It is therefore common for the settlement system to be placed at the central bank. It is also a service demanded by the banks themselves. Settlement in the RIX system also involves finality, which is to say that the payment is legally executed when it arrives in our system. The payment market is changing The arrival of the Internet in the late 1990s and early 2000s boosted the digitalisation of society and the payment market. New participants entered the market and many digital services linked to payments are presently offered, such as mobile solutions, electronic identification and so on. Changed consumption patterns such as increased on-line shopping are also generating demand for digital payments.
Then, I will briefly touch upon the exit strategy, the details of which were shared with the public last week, for gradually withdrawing measures taken during extraordinary circumstances. IV. Inflation developments and monetary policy implementations  31. As I have also mentioned at the beginning of my speech when evaluating the global economic developments, inflation rates saw dramatic declines on a global basis due to rapidly contracting economic activity and plunging commodity prices as of the last quarter of 2008. During this period, a similar pace was observed in Turkey regarding the inflation outlook. Despite the relatively sound structure of the Turkish financial sector, our exports being composed of mainly products sensitive to foreign conjuncture; the sensitivity of production to global credit conditions and high level of capacity at the onset of the crisis have deepened the contraction in economic activity. During this period, in addition to tightness in financial conditions, a sharp contraction in domestic demand was also experienced due to prevailing perception of uncertainty and increased precautionary savings. Furthermore, temporary tax incentives for stimulating the domestic demand led inflation to fall faster-than-  BIS Review 68/2010  11  expected in the first half of 2009. Consequently, the inflation rate remained below the announced target-consistent-path, in June. 32. As I have previously mentioned, as the pace of recovery in the global economy became more pronounced, the risk appetite in global financial markets started to boost as of the second half of 2009. Accordingly, emerging markets attracted more capital through increased portfolio movements.

Meanwhile, the positive contribution of the increased net exports as a result of the reduced demand for imports partially limited the slowdown of growth in 2009. BIS Review 68/2010  GDP Growth Rates GDP Growth Rates  Gross Domestic Product  (Annual Percentage Change)  (Seasonally Adjusted)  10  27  5  24 0  -5  21 -10  18  -15 1  2  3  4  1  2  2006  3  4  1  2  2007  3  4  1  2008  2  3  1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 12 3 4 1 2 3 4  4  2009  2003  Source: TURKSTAT. 2004  2005  2006  2007  2008  2009  Source: TURKSTAT, CBRT. 17. The transformation that the Turkish economy has undergone in the post-2001 period has caused major changes in the employment structure. The share of the agricultural sector in employment was 35 percent in 2002, while, this ratio fell to around 23 percent in 2007. However, with the recent economic slowdown, this trend reversed temporarily and the share of agricultural sector in employment increased to approximately 25 percent in 2009. 18. While global turmoil took a heavy toll on industrial employment, it had a scant impact on employment in construction and services sectors.
4  BIS Review 15/2003  While there is much work still to be done at many institutions, those banks that have obtained senior management buy-in to embark on this approach have been able to move ahead fairly rapidly. In addition, these institutions have found significant value in the process of rolling out such a framework. The benefits include greater risk transparency within the firm, greater cost efficiency, and ultimately, less exposure to large losses, both in terms of dollars and additional reputational knock-on effects. Challenges for supervisors I've focused on the challenges banks will confront in implementing the new Accord. Let me now spend a few moments discussing how our supervisory approach is also likely to evolve over time. Naturally, allowing banks to rely on internal models in determining their capital requirements has led, and will continue to lead, to changes in our supervisory process. Fortunately, we do have some experience on which to draw. In 1996, under the "market risk amendment" to the original Basel Accord, qualifying banks with large market risk positions were first permitted to incorporate internal estimates of the associated risk in their regulatory capital requirements. When determining whether a bank may rely on its market risk model for capital purposes, our examiners have had to evaluate the technical underpinnings of the model, as well as the risk management and control processes surrounding its implementation and use.

These three elements - independence of the ratings process, internal review of those ratings, and transparency - all contribute toward stronger controls over the ratings process. Such controls over the risk ratings process must be complemented by the collection of good data on which to base those ratings, which is the third area of focus for banks. c.  Data requirements and validation  Clearly, a system is only as good as the inputs that go into it. Accordingly, banks using the IRB approach will need to be able to measure the key statistical drivers of credit risk. I would emphasize that the Basel Committee clearly recognizes that there is more than one way to accomplish this purpose. The minimum Basel standards provide banks with the flexibility to rely on data derived from experience, or from external sources, as long as the bank can demonstrate the relevance of the external data to its own exposures. Regardless of source, high quality data are critical for formulating meaningful internal risk assessments. From a broader risk management perspective, access to such  BIS Review 15/2003  3  data will enable a bank to evaluate the performance of its internal rating and risk estimation systems in a consistent and meaningful manner. The Basel standards outline the data history banks will need in order to use the IRB approach. The Committee recognizes that banks may not currently have all of the required information on hand.
The competition between the various factions can lead to an inefficient tapping of natural resources and an unsound use of revenues. The spirit of enterprise, talent and energy in both business and political life are used to acquire a share of this income rather than to foster productive activity in both the public and private sector. For an individual company or a group, this activity may seem rational - a 10 per cent chance to win the jackpot could be better than investing in a business that yields an ordinary return. This may have damaging consequences for a country. A sociological explanation is that easily acquired wealth weakens the incentive for innovation and work. We feel that we have become rich and want to live the good life. A possible economic explanation is that a large and broad sector that is exposed to international competition fosters learning and development. Without such a sector, the competitive intensity in the economy may decline and the ability and willingness to be innovative may be impaired. We must be cautious about drawing final conclusions based on historical comparisons. We would prefer to assume that we are managing our wealth better. However, it may be of particular relevance to highlight three critical pre-conditions for succeeding in this. First: Decision-making forms and processes in the political and economic arena must provide effective protection against the acquisition by interest groups of the right to use large shares of the petroleum wealth.

Also in most ten-year periods, investing in US equities has been profitable, with the exception of the depression in the 1930s and the last half of the 1970s. Equity returns have been negative after ten years only in the years between 1928 and 1938, in other words on equity investments made the year before the 1929 stock market crash. It may also be worth noting that equities purchased during recessions - such as in the mid-1930s and mid-1970s - brought solid returns ten years later. The picture is the same for most other countries. Since short-term fluctuations in equity prices are difficult to predict, it may be a sound strategy to keep the share of equities constant over time. This means buying a relatively large volume of equities when prices are low, and buying a smaller volume - or selling - when prices are high. This is the strategy applied by the Petroleum Fund. Let us now revert to the Norwegian economy and Norwegian economic policy. The revision of economic policy in March 2001 can to some extent be said to be a consequence of our oil economy. The new guidelines have also changed the interaction between the different components of economic policy. Fiscal policy will now have an expansionary effect. In order to prevent pressure from becoming too strong, monetary policy has to be tighter than would otherwise have been the case. Monetary policy has therefore been given a clearer role in stabilising economic developments.