samchain/econo-pairs-v1 huggingface dataset:
The subject easily gives rise to heated debate: on the one hand, there are the "conservatives" – not to mention the climate sceptics – who are concerned only about central banks' action against inflation, and denounce the risks of "politicisation" and “mission creep". And on the other hand, there are the activists who are calling for a change of mandate, with a focus on the fight against climate change and the conversion of instruments – including the American movement for a "Green QE". In my opinion, the truth is simpler and stronger. The Eurosystem's consideration for climate change is neither an abuse of its mission, nor a mere militant conviction or a fad; it is an imperative that we must pursue in the very name of our current mandate and to ensure the smooth implementation of monetary policy. 1.1 In the very name of our mandate Without even having to mention our "secondary iii" objectives, which include environmental protection, climate change is linked to the core of the Eurosystem’s monetary mandate: price stability. Shocks related to climate change are potentially difficult to manage for central banks because of their stagflationary nature, as they may result in both upward pressure on prices and a slowdown in activity. Transitional policies – which bring about taxation changes, such as a carbon tax, or regulatory changes – can affect prices, notably energy prices, generate inflationary pressures and weigh on activity, as is already the case in the automotive sector.

Undoubtedly, Europe has been strengthened during this crisis. But Europe now has the opportunity to show that it can be more than the sum of the solutions adopted in this crisis. Once again, Monnet’s words offer inspiration: “Europe itself is only a step towards the forms of organisation of the world of tomorrow”. [2] With these words in mind, we must seize this invaluable opportunity to strengthen our Union. We must shape the recovery from this crisis in such a way that our economies are fit for the world of tomorrow. The unique strength of the European project The pandemic and the measures to contain the spread of the virus have caused a contraction in euro area economic activity that is unprecedented in peacetime. [3] While incoming data suggest that we will see a strong rebound during the third quarter[4] , the strength of the recovery remains very uncertain, as well as uneven and incomplete. It continues to be highly dependent on the future evolution of the pandemic and the success of containment policies. One major reason why we can expect a rebound in activity in the second half of the year is because, when faced with the largest economic shock since the Second World War, Europe and its leaders showed the unique strength of the European project: by acting together, we can achieve more. The ECB has played its part in this collective effort in the face of an unprecedented crisis. The nature of the pandemic shock called for an extraordinary monetary policy response.
Critical thinking and independent reasoning – or ijtihad – was geared towards fostering harmony and was celebrated as it enriched the body of knowledge. Today, the SAC continues this tradition, applying its collective wisdom, diligence and inquisitive minds in the contemporary setting of Islamic finance. Many practical and contemporary issues confronting the Islamic finance industry were resolved through more than 500 rulings. We have grown stronger, wiser and more inclusive over the years. Looking back at history, the Golden Age of Islam was replete with polymaths who helped build Islamic civilisation, turning it into one of the world’s greatest. Scholars such as Ibn Sina, Ibn Rushd and Ibn Al Haytham have left behind a legacy not only in the area of theology, but also in other modern disciplines, including medicine, astronomy and mathematics. Drawing from these inspiring examples, we can play an even bigger role in ensuring Islamic finance is able to deliver a lasting and metamorphic impact to the world we live in. This calls for the reinvention and reimagination of the Shariah profession in a number of ways. First, enlarging our worldview. No doubt, theology is core to ascertaining the integrity of Islamic finance transactions, rooted in the principles of the Quran and Sunnah. However, Islam offers so much freedom for intellectual and cultural explorations. Such explorations – to experiment with new ideas and critically assess existing norms – are in fact, highly encouraged.

We can learn valuable lessons from the practices of great Muslim thinkers of the past such as Al-Farabi and Ibn Sina who drew strong influences from the writings of Greek philosophers such as Aristotle, but revolutionised and updated the knowledge into the context of Islam and their contemporary times. The benefits are immense. It allows knowledge to thrive and develop further as it becomes more applicable and easier to grasp. It is therefore wise for us to widen our "peripheral vision" to encompass business considerations in interpreting and applying the principles of Shariah. This is essential, if we aspire to break away from a compliance-based mentality into an outcome-based worldview. The mental shift would position Shariah scholars as not merely the leaders in Shariah knowledge, but also as the catalyst for business innovations. It is in this spirit that Bank Negara Malaysia is enhancing the Shariah Governance Framework for Islamic financial institutions. The new framework calls upon the Shariah Committees to integrate relevant business and risk considerations in Shariah decisions. Our aim is to position these committees as an enabler and catalyst in supporting the board and senior management. One that drives innovation by providing practical, actionable and impactful Shariah advice. By capturing multifaceted challenges faced by the industry, this framework ensures an ongoing support to Shariah advice amid the fast-changing business environment. Second is the pursuit of lifelong learning. It is through the relentless quest for knowledge that the great scholars of the past have left a lasting impact on our world.
Third, sufficient level of contingent capital should enable a well-run bank to still operate with significant leverage and thus earn a healthy return. In the more extreme suggestions for the amount of contingent capital, one would very substantially change the return profile of common equity for banks, perhaps creating an entirely new investor category. There are two lessons from this paper which should be applied to contingent capital instruments. First it has been suggested to us by market contacts that the trigger point in existing contingent instruments is such that many investors have bought them on the assumption that these contingent capital securities never will be called (or worse, that there will be official support before that point). If that were to be the foundation for this market, we believe that the very purpose of contingent capital may be subverted, creating a risk to financial stability in a crisis situation. The whole point of contingent capital securities should be that the recapitalisation is triggered without any grand repercussions, making it easier than raising fresh capital in the market. If triggering the conversion were to cause the sort of damage reported in our examples above, then the market could be severely disrupted just when it was most needed. The contract design must therefore reflect a need for the trigger to be as smooth as possible. One potential mitigant would be to have a range of trigger levels, so no single level becomes a focal point for indicating severe distress.

In a very interconnected financial system, it can be almost self-fulfilling that when the market starts to think some of the banks are in trouble, in fact all of them are4. A third example in this section is the dynamic hedging strategy of a bank’s credit risk arising from its derivatives portfolio (Credit/Counterparty Valuation Adjustment: CVA hedging). This normally refers to the credit risk of a counterparty that is not directly offset by some form of collateral5. Suppose a corporate has issued a fixed rate bond because investor preference makes that the best value, but really it wants to have a floating rate liability. A bank will accommodate this by providing an interest rate swap. If interest rates go up, that swap may generate a net value owing to the bank. Receiving that value depends on the corporate not defaulting and so the bank will have a credit exposure to the corporate. But the corporate cannot be expected to post collateral – it will just regard its debt as having been converted to floating rate (and typically it won’t hold any collateral it could post anyway). A bank that is active in these interest rate swaps will end up with a large number of such mark-to-market exposures. Collectively, the resulting exposures constitute a credit portfolio which changes with the mark-to-market values of the underlying derivatives contracts. To manage the credit risks embedded in this so-called CVA portfolio, most banks will hedge dynamically in the CDS market.
•  Clients will get the opportunity to stress-test their systems, assess the responsiveness of existing coverage to losses, and gain an appreciation of potential losses and the need for cyber insurance cover. Promote Asian demand Next, we want to promote insurance demand in Asia. Asia is already leading the world in premium growth. We seek to catalyse the development of insurance demand in the region via a three-pronged approach. First, enhancing cross-border access to regional markets. The ASEAN economies are working together on a comprehensive insurance liberalisation framework. •  We aspire to achieve substantial liberalisation by 2020 for all insurance sub-sectors, namely life insurance, non-life insurance, reinsurance and retrocession, insurance intermediation, and insurance auxiliary services. •  Insurers can expect to benefit from easier cross-border provision of services and substantial access across the ASEAN customer base from offices in any ASEAN member country. •  The framework is expected to be discussed at the ASEAN Finance Ministers’ Meeting next year. Second, increasing the pool of Asian risk data. Modelling and loss simulation are key tools to help insurers manage and price their exposures. Accurate and timely data are critical for risk models to predict the impact of a loss event. For example, to predict the vulnerability of an insured risk to catastrophes, a wide variety of data is required, such as geographic location,  BIS central bankers’ speeches  3  soil structures, rainfall, construction materials and urban density, just to name a few.

M R Pridiyathorn Devakula: Upon acceptance of the award for Central Banker of the Year - Asia 2006 Statement by Mr M R Pridiyathorn Devakula, Governor of the Bank of Thailand, at the Banker Magazine Luncheon Seminar, Bangkok, 1 February 2006. *  *  *  Distinguished Guests, Ladies and Gentlemen, Back in June 2001, when I landed at the job of Governor of the Bank of Thailand, I was fairly confident that I would be able to do well in the area of bank supervision, given the considerable exposure I’ve had as a commercial banker. I also had some ideas on how to move forward the resolution of NPL and return banks to profitability. But I was a banker and not an economist by profession. My expertise in business administration made me a bit uneasy on matters concerning monetary policy, as I felt that I did not have enough macroeconomic background to master the monetary policy issues. However, I was really fortunate to have a highly competent Monetary Policy Committee as well as BOT staff to support me in this area. Indeed the depth of knowledge and the quality of analysis provided by BOT staff are materials which I can always rely on. All I have to do during the past 4½ years is to pay close attention to their presentation, data analysis and proposals.
It is very important for future French growth, for investment and for job creation that we have the lowest medium- and long-term market rates in the European Union today and the third lowest interest rates in the world. Second, price stability curbs cost increases in our productive sector. In doing so, the competitiveness of our economy—other things being equal—is preserved and enhanced. This is good for future French growth and for job creation. It is important to note that we currently have a dynamic export sector and, according to the latest forecasts for 1996, the third highest current account surplus in the world. One other indicator of competitiveness is encouraging, namely the flow of foreign direct investment into France. It stood at FRF 120 billion in 1995. The latest figures for the first nine months of 1996 show inward foreign direct investment totalling FRF 74 billion. In all, since the beginning of 1995, a total of FRF 194 billion, the equivalent of USD 39 billion, has been invested directly in France, making us the third-ranking industrialized economy in terms of inward foreign direct investment, behind the United States and the United Kingdom.

The Monetary Policy Council will keep a close eye on other indicators, including all leading indicators of changes in prices, such as capacity utilization rates, production costs, developments in incomes and commodity prices. The Monetary Policy Council will also monitor long-term interest rates and the current account balance. * *  *  These decisions call for two remarks. First, on a technical level, the Monetary Policy Council has decided to monitor several narrow and broad money aggregates simultaneously in order to obtain a concise estimate of all monetary developments. As we have seen, certain data, and particularly, but not exclusively, M3 data, have been severely disrupted recently by several factors, such as the very substantial fall in short-term rates and the ensuing large-scale reallocation of investment flows towards non-monetary assets, higher taxes on money market mutual funds, and the continuing very high level of interest paid on housing saving plans. We will therefore keep a very close eye on the M1, M2, M3, and M3+P1 aggregates as expressions of the underlying growth of the money supply. Particular attention will be paid to the growth of the M3+P1 aggregate covering monetary assets and contractual savings. A very large proportion of the outflows from M3 in the past year was directed towards investments covered by P1, and particularly housing savings plans with a residual maturity of one year or less. In fact, this type of investment at present constitutes a very close substitute for monetary assets.
BIS central bankers’ speeches  13  The Bank’s Monetary Policy Report also presents alternative scenarios for the Norwegian economy. If developments are broadly in line with expectations, economic agents can expect that the interest rate will be set in line with that projected by Norges Bank. If conditions change, as was the case in August, Norges Bank will naturally adapt the monetary policy stance in the light of new economic prospects. Through summer, dramatic falls on stock exchanges and political unrest made the headlines. There are now prospects of lower economic growth in many countries. In both the US and many countries in Europe, public debt is high and fiscal deficits are substantial. At the same time, measures to reduce the deficit in the short term will also dampen activity. Some economists fear a renewed economic setback in the US and the financial markets are characterised by turbulence and uncertainty. The US and EU authorities are facing demanding decision-making processes. In the US, the political parties and the people are divided in their views on taxation and the exercise of central government authority, reflected for example in the absence of measures to strengthen central government revenues. The debt problems in the EU are being aggravated by the lack of a similar coordination of fiscal policy to support the European monetary union. Government finances in many of the countries now experiencing problems have been weaker than required under the EU’s own rules for several years. Measures have been put in place.

In line with Malaysia’s aspiration to be a leading international Islamic financial hub, flexibility is granted for nonresidents to raise ringgit through issuance of sukuk in Malaysia as part efforts to attract higher level of foreign participation and promote diversity of market players and products in the Malaysian Islamic financial markets. The sukuk market now accounts for more than fifty percent of our bond market and has drawn participation from a wide range of international corporations and multilateral agencies in raising funds and investing in sukuk issuances out of Malaysia. BIS Review 151/2010  3  Myth 5: FEA rules are restrictive on accessibility to ringgit offshore by foreign investors for settlement of their investments in Malaysia Many may not have realised that since 2007, non-residents have been allowed to access ringgit offshore through any appointed overseas branches within the same banking group of the onshore banks to purchase or sell ringgit on a spot or forward basis based on firm underlying commitment for investments in ringgit assets. This was to maximise the potential and seamless opportunities through the widening of international investors’ participation into the Malaysian capital market. As onshore banks, you should capitalise on these opportunities to reap the benefits and at the same time, contribute to the enhancement in the development of the domestic financial market. These FEA rules were also designed to facilitate investment by foreign companies into the real sector. It is our intention that the FEA rules will facilitate and ease foreign investment into the country.
Such collaborative industry effort in infrastructure sharing would allow the industry to compete directly on product offerings and the quality of services provided, thus providing better value to both consumers and merchants. In this regard, the recent industry-wide initiatives to enhance the payment card infrastructure and to modernise the online bill payments market via JomPAY are commendable and should be sustained. In this respect, I would also like to call upon MyClear and MEPS to jointly embark on payment infrastructure projects and initiatives that would benefit both the industry and the country. Role of MyClear and the industry moving forward Achieving the critical mass in terms of usage and acceptance remains a key priority. In this regard, banks in collaboration with MyClear should take concerted efforts to expand the number of businesses accepting JomPAY, especially among the underpenetrated sectors of SMEs and the federal and state government agencies. This can be done through coordinated media campaigns, workshops, roadshows and other outreach programs. MyClear and the participating banks should target to register 5,000 merchants onto JomPAY by 2020. To educate the public, especially those who are not IT savvy to use JomPAY, MyClear and the banks should also come up with instructional videos and pamphlets to provide the  BIS central bankers’ speeches  3  necessary guidance and assistance.

Banks should also explore the offering of real-time payment facilities for bill payments where there is demand for such services. Conclusion Ladies and gentlemen, the introduction of JomPAY will complement the existing measures to accelerate the country’s migration to e-payments. Moving forward, MyClear, MEPS and the banks should continuously collaborate to explore new and innovative ways to achieve greater payment efficiency. Both consumers and businesses should capitalize on the benefits and opportunities derived from the adoption of e-payments to enhance competitiveness in this rapidly evolving world. Let me conclude by congratulating MyClear and the banks on the successful establishment of the national bill payment scheme, JomPAY. I hope such a collaborative spirit will be enhanced to drive the country towards a successful migration to e-payments. 4  BIS central bankers’ speeches
This shift was not driven by any policy but as a consequence of technology providing more convenient ways for us to transact with each other. The shift as I recall has generated very little controversy or political attention. There has been a political response, but this has more about financial inclusion, about ensuring access to a bank account and to “One of the most important forms of currency in England in Henry's time were notched "tally sticks" used to record debts. Tally sticks were quite explicitly IOUs: both parties to a transaction would take a hazelwood twig, notch it to indicate the amount owed, and then split it in half. The creditor would keep one half, called "the stock" (hence the origin of the term "stock holder") and the debtor kept the other, called "the stub" (hence the origin of the term "ticket stub.") Tax assessors used such twigs to calculate amounts owed by local sheriffs. Often, though, rather than wait for the taxes to come due, Henry's exchequer would often sell the tallies at a discount, and they would circulate, as tokens of debt owed to the government, to anyone willing to trade for them. Modern banknotes actually work on a similar principle, except in reverse.” Graeber (2011) 3 The Payments of Wages Act 1960, as amended by the Truck Act. 2  3  All speeches are available online at www.bankofengland.co.uk/news/speeches  3  commercial bank money so that people were not left behind by the change.

However, trade flows among the 13 countries, only amount to 10% of global trade, hence there’s much room for further growth especially as our countries are increasingly inter-connected. 13. We from the public sector have created financial highways to link up our vibrant economies and have found ways to finance physical roads and highways. To recapitulate my message: •  2  Financial integration within ASEAN is targeted to support the large markets of goods, services and financial products in the region. Financing economic activities of ASEAN needs not only strong but also interlinked banks and  BIS central bankers’ speeches  financial institutions. Financing opportunities grow significantly when expanding these linkages to the Plus Three countries. Firms can tap on to various modes of financing in equities and bond markets to expand their businesses to match the growing trade and investment flows. •  The other area is on infrastructure development: While the barriers of tariffs have fallen, trade among us cannot flourish if we are constantly facing infrastructural bottlenecks. The ADB has estimated that Asia has a demand for infrastructure to the tune of $ 8 trillion over ten years. This is where the Asian Infrastructure Fund and the Asian Infrastructure Investment Bank come into play to address these bottlenecks and open up vast potentials for development and trade beyond the AEC to Plus Three. Through this, a new regional logistics-based sector is about to take shape. 14.