samchain/econo-pairs-v1 huggingface dataset:
5 6  This point has been noted by Charles Kindleberger. See ‘The Global Financial Centres Index 20’, September 2016, published by the Z/Yen Group. 5  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  5  A second possible explanation is that modern financial markets are so large that the surplus generated by an original trade or manufacturing activity is far less relevant now than before. After all, since the abolition of capital controls after the end of the Bretton Woods era, financial services have grown a lot faster than global trade. In the UK, gross financial flows grew rapidly from the 1980s to the end of the 2000s and became larger than trade and current account flows. Once financial flows start to move through a financial centre, the ensuing returns to scale and specialisation generate greater financial flows through the centre. The flows associated with the UK’s extremely large external asset and liability position may have helped to reinforce this dynamic. A related point, one that I touched on earlier, is that physical location does not matter anymore, since technology allows investors to pick the most efficient location to manage the global allocation of capital. In this case, London is playing the role of asset manager, intermediating flows between different global regions. The investment decision and risk management skills are in London but the assets may be booked elsewhere. Allied to the increase in gross financial flows, it is possible that financial markets demand different inputs than in the past.

For example, the market for derivatives encompasses more human capital (in the form of law experts writing contracts) than physical capital. Given the dominance of UK law, this would tend to encourage activity in London. Finally, regulatory changes may have played a role. London became the main trading centre for the Eurodollar market in the 1960s. The City went through a wave of deregulation in the 1980s and beginning of the 1990s which may have contributed to its position as a global financial centre. All of these drivers are likely to have played a part in concentrating financial market activity in London. And indeed they are likely to have been mutually reinforcing. The social license for financial markets  I have described at some length why concentrations of financial services develop and the economies of scale, lower costs and greater efficiency they should bring. In the case of financial markets and financial centres, however, one does have to ask the question, ‘for whose benefit’? Financial services exist, as we would all agree, to serve the real economy by channeling savings to investment, by providing insurance and by facilitating economic activity and trade.
Insurers can be highly influential in bringing the realities of climate change into mainstream financial decision-making. To do so, we need a step change in three areas: reporting, risk management and return. 7  All speeches are available online at www.bankofengland.co.uk/news/speeches  7  Reporting Better corporate disclosure of climate-related financial risks is essential and the next few years will be decisive. On the demand side, current supporters of the Task Force on Climate-related Financial Disclosures (TCFD) are responsible for assets totalling $ trillion and include the world’s globally systemic banks, top 10 global asset managers, leading pension funds and insurers. Not surprisingly, supply is responding. Users of capital are providing increasingly sophisticated decisionuseful information. Four-fifths of the top 1,100 G20 companies surveyed in a recent TCFD report are now disclosing climate-related financial risks in line with the recommendations. Now is the time to get involved. The IAIS and UN Sustainable Insurance Forum are monitoring developments in disclosures closely: with a systematic survey of TCFD adoption by insurance firms and they will be publishing a paper on this early next year, including recommendations for any changes. The Climate Change Research Initiative (CCRI) will do the same. The next step is to make these disclosures mandatory. The UK and EU have already signalled their intents. But it’s time for every country to get involved because the world won’t get to net zero if the financial sector doesn’t know how our companies are responding. To watch we must be able to see.

Nevertheless, inflation remains very high and its convergence to 3% is subject to risks. Hence, we have communicated that the monetary policy interest rate has peaked in this cycle but that it will remain at its high current value until the macroeconomic situation shows a clear convergence of inflation to 3%. 7  . Keeping a low and stable inflation is not only desirable for the real economy, but also very important to develop fix income local currency market, which in turn, positively affect the real economy in the long run on a virtuous cycle. On the other hand, tight monetary policy, fiscal consolidation, and higher real exchange rate will also alleviate the external imbalance. The role of central bank in pursuing these macro-adjustments is instrumental to the development of a sound and deep local financial market. 3. Financial Policy developments of the Central Bank of Chile: Building a sound regulatory framework and an up-to-date infrastructure As I mentioned earlier, a deeper and properly regulated financial system contributes to financial stability, inclusion and increases welfare. Even though significant progress has been made in this regard, there are still challenges ahead to further strengthen our financial system. Let me now briefly explain how the Central Bank is contributing to the goal of improving the functioning of the financial market and keeping the resilience of our financial system. The financial policy agenda of the Bank has been quite active in recent years.
In addition, the experiences of the financial crisis have also led to a change in behaviour in the financial sector. The financial situation appears stable and the banks' increase in lending is not so high that it can be interpreted as greater risk-taking in the financial sector. Approximately SEK 420 billion of the total lending by mortgage institutions comprises loans to purchase apartment blocks. This is a large percentage, almost 40 per cent of the total lending by these institutions. However, the figures on lending during the 1990s show that both the percentage and the volume of lending in this area is declining. Statistics provided by the mortgage institutions with regard to gross flows of loans for various purposes with apartment blocks as collateral confirm this picture. In 1991 new building was the reason for most of the lending, while renovation and extensions accounted for only a minor part. During 2001, on the other hand, new building accounted for a small part, renovation and extensions for even less, while the largest percentage was for other purposes. Why is this? Naturally, it is related to the way the sub-markets function. The market for single-family dwellings functions well with buyers and sellers agreeing on a market price when houses are sold. Once a single-family dwelling has been built, the market functions well without any major disturbances from restrictions or regulations.

A higher capital adequacy requirement for taking bigger risks will thus lead to the banks being forced to charge more for lending money to higher risk borrowers. This is a regulatory system that is used by 120 countries and it contributes to financial stability around the world. However, the current capital adequacy rules from 1988 are divided into 4 fairly rough risk classes, which do not very well reflect the risk with various borrowers. For instance, the risk classification means that all companies are in the same risk class, despite the fact that they can differ markedly from one another. There has therefore been intensive work on further developing these rules by the Basel Committee, in which both the Riksbank and Finansinspektionen (the Swedish financial supervisory authority) participate. The idea with the new rules is that the risk weighting will better reflect the actual credit risk. This means that the banks will become more thorough in assessing the relationship between the risk in the credit and its yield. An increased risk will therefore be marked in the banks’ pricing of loans, i.e. the interest rate. There are both advantages and disadvantages with the proposed capital adequacy rules. The proposed rules mean that the banks must hold more capital if the risks in their given loans increase. If they do not have more capital than the rules require, they must either acquire more capital or reduce the risks in their lending.
We will then know what the capital shortfalls are and whether they can be covered. Moreover, the state of the banking sector is a serious problem for the country, but not the only one. Slovenia has inefficient state enterprises, attempts to introduce pension reform have failed twice and it is running a larger budget deficit than EU regulations allow. Many people are also concerned about the heavyweights France and Italy. Some observers fear that both countries are completely incapable of introducing reforms. How frustrated are you and your ECB colleagues that the large countries are not making better use of the time that the ECB, too, is “buying” for them to introduce reforms. Let me say one thing first: we all have a strong interest in an economically strong France. The entire construction of the euro area can only function with a strong France. The latest pension reforms are a step in the right direction but do not go far enough. I also see problems regarding the intended funding through higher taxes and contributions, rather than through specific spending cuts. Besides, the plans also contradict the EU Commission’s country-specific recommendations. The bottom line is that France will need to do more to enhance its competitiveness. The government will need to speed up the pace of reforms. And Italy? Much was achieved through fiscal policy efforts under the former prime minister Mario Monti. It is now important to ensure that these successful achievements are not eroded.

I am optimistic that Europe will come out of the crisis stronger and more robust. But that won’t be true of the euro area’s growth potential, will it? Many economists now think that will be much lower. We don’t traditionally publish our estimate of that. However, we must work on the assumption that the potential growth rate has slowed down – owing to the lower use of labour and, especially, the fall off in investment. The long-term development is still unclear. If the crisis is used to push through the necessary reforms, potential growth may accelerate. But we also need to consider the rapid ageing of the population, which will depress potential growth. Let’s now look at the current situation. The ECB is more sceptical than many economists – many would even say “pessimistic” – when it comes to the economic outlook. What is that assessment based on? I wouldn’t say that we are pessimistic. We are currently seeing the confirmation of what we have been expecting since December: the euro area is recovering very slowly in the course of the year, and that improvement will continue next year. However, there is no reason for our growth forecasts to go shooting up, and that is why we remain cautious. And that is why the ECB is continuing to try to use its forward guidance to shield the euro area economy from rising market interest rates in the event that the ultra-loose monetary policy in the United States comes to an end?
Our “Singapore Real-Time” vision aims to grow data related services and develop the data industry. In 2011, the MIT Senseable City Laboratory obtained a research grant to launch the “LIVE Singapore!” project. This project provides a platform to pool real-time information from several government agencies and to present them in visually compelling ways. Conclusion Ladies and gentlemen, I have sketched out several key trends which I believe will have the greatest impact on the world, and highlighted how Singapore is responding to these trends. The future landscape will not just be shaped by the flow of goods and money, but also by the flow of ideas. This conference is therefore a very useful platform to bring together thought leaders and successful individuals from the East and West, not just to discuss future trends, but to seed and drive the exchange of powerful, world-changing ideas. On this note, let me wish everyone a rich and exciting discussion at the conference today. Thank you. 4  BIS central bankers’ speeches

Going a step forward, it is also noteworthy that emerging market economies, and in particular Asia – with China at its centre – may become some kind of a “spare engine” to world growth, buffering the impact of the turbulence on global activity. This idea of a “second pillar” for growth relies mainly on the observed strength of domestic demand in Asia, and the key issue here is whether this strength could be self-sustaining. Maybe, we will not be able to answer this question thoroughly until the macroeconomic impact of the turbulence unfolds completely and the trade channel works itself out. But, one aspect that is clear – even now – is that some rebalancing from the current investment-led pattern to a more consumption-based model is required. This is not a simple task, since the underlying causes of the current growth pattern in some Asian countries – including China –  2  BIS Review 56/2008  are manifold. Issues such as the catching-up process, the need of a large part of the population to secure future incomes, or the role of the public sector in providing schooling and pensions, have all a role to play as has been widely discussed in recent years by scholars and policymakers in the region. In fact, the recently published Asian Development Outlook delves on some of these issues at great length. As we will have the opportunity to discuss today, more developed financial systems can also greatly help to rebalance growth.
When oil prices are taken as those of the year 2000, it can be said that the ratio of current account deficit to national income is 1.2 percentage points lower as of the first quarter of 2006. Meanwhile, it is expected that the depreciation of the Turkish currency due to recent fluctuations in financial markets, monetary policy tightening and the relative decline in domestic demand will slow economic activity and imports to a certain extent as of the second half of the year. As for exports, the upward trend is anticipated to gain momentum in line with increased foreign demand. In this framework, it is expected that the ratio of current account deficit to gross national product will fall in 2006 compared to 2005. The quality of financing is very important for the sustainability of the current account deficit and for preventing the perception that the current account deficit is a risk. The quality of financing in Turkey has improved significantly, especially due to the favorable impact of the structural transformation process and has enhanced the macroeconomic conditions observed in the last five years. Long-term capital is assuming an increasingly important role in the financing of the current account deficit. By June, 82 percent of the current account deficit has been financed with long-term capital alone. Meanwhile, the ratio of short-term capital to current account deficit stands at 29.4 percent. In addition, foreign direct investments peaked well beyond historic levels and reached a record-high level of USD 17.3 billion in annual terms in June 2006.

We have a fintech industry which 2  employs over 60,000 people. This success is not limited to London; centres of excellence exist across the country including Manchester, Leeds, Edinburgh and Cambridge (where Sir Dave Ramsden is today chairing a fintech roundtable). Innovation is not the preserve of those in the fintech sector; the banking industry as a whole is making system-wide changes to improve how it serves the people of the UK. The Bank is also no stranger to innovation and in my previous role as Chief Cashier I oversaw the introduction of the new cleaner, safer and stronger five pound and ten pound notes. We decided not to build the renewed RTGS on Distributed Ledger Technology (DLT), wanting to first see greater proof of resilience and scalability. However, we are keen to facilitate the use of new technologies and we are working to deliver a service that has the capability to interact with DLT systems should demand emerge. The Bank has recently concluded a Proof of Concept (PoC) with a number of fintech firms on this topic. The purpose of this PoC was to (a) understand how RTGS could be capable of supporting settlement in systems operating on innovative payment technologies. (b) To understand the limitations that such systems might need to navigate.
Interbank funding markets seized up, the shadow banking system crumpled and several major financial firms – banks and nonbanks alike – collapsed or approached the brink of collapse. Extraordinary interventions of governments and central banks around the world were necessary to prevent a complete collapse of the financial system and the broader economy. As a general matter, regulators did not appreciate beforehand how vulnerable the system was to shocks. In particular, there was a failure to appreciate the important interconnections among the banking system, capital markets, and payment and settlement system. For example, the disruption of the securitization markets caused by the poor performance of highly rated debt securities led to significant problems for major financial institutions. These banks had to take assets back on their books, backstop lines of credit were triggered, and banks could no longer securitize loans, thus increasing the pressure on their balance sheets. This reduced credit availability, which increased the downward pressure on economic activity, which caused asset values to decline further, and in turn, increased the degree of stress in the financial system. Moreover, regulators did not adequately understand how the dynamics of the system tended to exacerbate shocks, rather than dampen their impact. For example, with respect to capital, firms under stress had incentives to continue to pay dividends to show that they were strong. These dividend payments actually depleted capital, making the firms weaker and vulnerable to credit rating downgrades. When credit ratings were indeed cut, that increased collateral calls, which intensified the pressure on scarce liquidity resources.

*  *  *  BIS Review 9/1999
The high level of interest rates and the strong krone reflect real economic driving forces, such as a high level of petroleum revenues, a tight labour market and strong growth in household income, consumption and borrowing. In addition, a shift in the wage formation process may have added to the particularly high rate of overall wage growth. If these forces are restrained, there is also hope that the pressures on monetary policy will subside. The bond market Market interest rate rates determine the compensation afforded to savers for abstaining from consuming today and the price the investor has to pay for borrowing the savings of other agents. The financial sector is the intermediary that channels savings to profitable investment projects and seeks to achieve optimal use of existing capital. The financial system should also enable borrowers and investors to diversify risk. Banks and securities markets ensure the distribution of capital and risk management. • The financial system has been subjected to shocks: • Cyclical downturn in the major industrial countries • The IT share bubble burst • Terror attacks in the US • Argentina "bankrupt”  • Confidence eroded • Large-scale fraudulent accounting practices by US companies  SG Kommunalbanken, 30.august 2002  In the last few years, the financial sector has been under considerable strain. There has been a downturn in the major industrial countries, a collapse in technology stocks, terror attacks in the US and default on government debt in Argentina. Equity prices have plummeted and bond defaults have increased sharply.

More fund-based schemes will generate a positive stimulus to the Norwegian securities market, even if an appropriate risk diversification would imply that a large portion of the capital in pension funds is  8  BIS Review 48/2002  invested abroad. A rising share of fund-based schemes in other countries will also increase investment in Norway. The statutory regulation of pension fund investment will also be of importance. For example, today most countries have relatively stringent restrictions on the equity portion in pension funds’ portfolios. However, a proposed new EU directive would make it possible to increase this portion, which may have an impact on demand for securities. Recent developments in financial markets have shown that a substantial measure of uncertainty is associated with the return on such investments. This uncertainty is related to future economic developments, which will also apply to the pay-as-you-go system. It is true that Government can influence this through tax changes. Adverse economic developments will, however, put the ability and willingness to increase taxes in order to honour pension obligations to the test. This uncertainty will be even greater in a country like Norway that is highly reliant on one or a small number of industries. Government finances are, for example, still vulnerable in the face of a sustained decline in oil prices. The uncertainty about future developments is continuously reflected in a fund-based system. An essential question associated with a fund-based system is who is to bear the risk related to returns.