samchain/econo-pairs-v1 huggingface dataset:
In addition, the tax rules meant that the impact of interest expenses was reduced, which would change with the tax reform in 1990-91. Moreover, there was a strong domestic inflation trend with price and wage spirals, which had long been something of a structural problem in the Swedish economy. The combination of high inflation, high inflation expectations and the design of the tax system meant that the interest rate after tax and inflation was negative for many investors and households, which of course made it tempting to take out a loan. Stabilisation policy was not sufficiently strict to dampen lending, and so the economy was heading toward overheating in the late 1980s. In 1990–91, there was a substantial reversal in the real interest rate, for several reasons. German reunification pushed international interest rates upwards, foreign exchange market unrest forced the Riksbank and central banks in other ERM countries to raise their policy rates to defend their respective exchange rates, and  5  More detailed accounts of the 1990s crisis and its background can be found in, for example, the Economic Commission (1993) and Wetterberg (2009). 3 [16]  the tax reform in 1990–91 made it more expensive to borrow. From having been negative, the real interest rate rose in a short time to around 5 per cent, in what has been called the ‘real interest rate shock’. This reversal shook up the financial system, property prices fell and a combined financial, banking and property crisis broke out.

It is also well-known that, despite their social challenges, many with autism have powerful intellectual skills – for example, in pattern recognition. That it is why it has been estimated that as many as 50% of Silicon Valley innovators may have Asperger’s Syndrome, a type of 8  autism. Yet how easy would it be for those with autism to thrive in our organisations? The facts rather speak for themselves. Only around 12% of high-functioning individuals with autism are in work. Another aspect to recruitment which inhibits diversity-building is that it tends to be judged with individual, rather than the organisational, attributes in mind. Let’s take a simple example to illustrate. Consider two candidates for a job sitting a test. The first scores 8 out of 10, the second 4 out of 10. The first person is clearly the best person for the job. But are they the right person for the organisation? 8  See The Economist (2016) ‘Beautiful minds, wasted: how not to squander the potential of autistic people’. 5  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  5  That is not so clear. What if the second person answers correctly the two questions the first candidate gets wrong. And what if the same is true of most of the existing employees in the company – likely, as they will have probably helped set the test. In this situation, the second candidate may well be the better one for the organisation because they bring organisational strength through diversity, despite being individually weaker.
Nominal annual dynamics of house prices in Bucharest and the rest of the country 15  percent  10 10  5 0  5 -5 -10  0  -15 -20  -5  Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17  -10  RO CZ  PL BG  Source: Eurostat, NBR calculations  HU EC threshold  Mar.10 Jun.10 Sep.10 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17  -25  house prices – whole country house prices – Bucharest house prices – rest of the country Source: NIS 26  Figure 37. House price-to-income ratio no. of years  EUR/sqm  Figure 38.

Determinants of GDP dynamics 8  contributions, percentage points  percent 8  6  6  4  4  60  percent  50  40 2  2 30  -4  10  actual final consumption net exports of goods and services change in inventories gross fixed capital formation real GDP, annual change (rhs) Source: NIS  2017 H1  -4 2016  20  2015  -2  2014  -2  2013  0  2012  0  0 Intermediate Primary commodities goods January-July 2016  Capital goods  Consumption goods  January-July 2017  Source: NBR 16  Figure 23.
Chart 3: Paths for policy rates implied by forward market interest rates UK EA  US Japan  Per 3.5  Chart 4: International policy rates over time Higher than 5% Between 1% and 3% Less than zero  Between 3% and 5% Between 0% and 1%  Proportion of regions  100%  3.0 2.5  80%  2.0 60%  1.5 1.0  40%  0.5 0.0  20%  -0.5 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 2000  Sources: Bloomberg and Bank Calculations. Notes: Instantaneous forward rates based on OIS contracts for the UK and euro area and government bonds for the US and Japan. 2005  2010  0% 2015  Sources: Thomson Reuters Datastream, CEIC and Bank calculations. Notes: Included regions are: Australia, Brazil, Canada, China, Euro area, Hong Kong, India, Indonesia, Malaysia, New Zealand, Norway, Philippines, Singapore, South Korea, Sweden, Switzerland, Taiwan, Thailand, UK and US. Together these countries account for approximately 70% of PPP-weighted world GDP. Of course, what goes down can also bounce back up. Recently, there has been some upwards movement in UK and US yield curves. But yields elsewhere, especially in Europe, have continued to fall. And the longer-term trend is clear: a persistent ratcheting-down in interest rates across all maturities and virtually all countries, to reach unprecedentedly low levels. As a recent example of that, Chart 5 plots the UK forward curve at monthly intervals over the past 9 months.

There are experts to discuss these topics in this Forum and let me not pre-empt them. I hope the deliberations today will bring such issues into light and that there will be a meaningful discussion. I wish the seminar a success. 2  BIS Review 64/2007
These projects would fail to receive financing. Investment and, ultimately, growth would be lower  4  BIS central bankers’ speeches  than optimal. In fact, the potential capital misallocation problem is greater still. To see that, consider the three projects summarised in Table 1. Table 1 Short-termism and capital planning Project  A  B  C  Cash-flows (CF)  $ pa in years 6–10  $ pa every year  $ pa in years 1–5  Cumulative CF  $  $  $  NPV (rational)  $  $  $  1  2  3  $  $  $  3  2  1  Ranking (rational) NPV (myopia) Ranking (myopia)  In the absence of short-termism, project A is selected. Its payouts are back-loaded but significant; it generates a net excess return of 22%.17 Short-termism hits such long duration projects hardest. The impatient investor chooses project C. This project delivers lower cashflows but these are front-loaded. In NPV terms, the project selected is the worst on offer, whereas the rationally optimal project ranks last. Capital allocation is not just sub-optimally low; it is also skewed towards sub-optimally short-duration projects. (b)  Asset pricing  Consider now a formal model of multi-period equity price determination. Finance theory typically assumes that investors care about both the level and uncertainty of their wealth and are risk averse. In this world, agents require a premium to invest in a company.

These mechanisms can take various forms, but all seek to offer sufficient certainty to system participants as to the correct status of the transaction ledger at any moment in time. One of the most well-known tools is the so-called proof-of-work or PoW, which requires complex and costly – primarily in energy consumption – computational calculations. It is precisely this latter aspect which is expected to deter irregular behaviour on the part of validators. However, the price of electricity, concerns about the environmental impact, the limited access to the specialised hardware required and scalability problems are some of the factors that are encouraging gradual migration to other types of solutions.8 Proof-of-stake or PoS is one such alternative. Its main characteristic is that validators are selected according to their direct economic stake in the network; in other words, depending on the amount of crypto-assets they own and must block to ensure that the operation is validated correctly. As they have a direct interest in preserving the value of the crypto-asset, in principle, this mechanism creates incentives to behave honestly. Moreover, as the possibility of their being assigned operations is generally connected with the volume of crypto-assets blocked, the network is less decentralised than under the other mechanisms. Although there are more options, where blockchain networks are set up as closed circuits (permissioned networks), a third mechanism, dubbed proof-of-authority or PoA, is generally prominent.
Mojmír Hampl: A digital currency useful for central banks? Speech by Mr Mojmír Hampl, Vice Governor of the Czech National Bank, at the 7th BBVA Seminar for Public Sector Investors and Issuers, Bilbao, 27 February 2018. * * * Ladies and gentlemen, Let me begin by thanking BBVA for their kind invitation to this event. It is a pleasure to speak in front of this knowledgeable and receptive audience, and it is a pleasure for me in particular to be in Bilbao for the first time in my life. Cryptocurrencies, digital currencies, and especially bitcoin have become almost household names over the last couple of months. What is especially interesting and curious for this place – as some of you might know – is that among the hundreds of cryptocurrencies introduced in the last couple of years is one called “bilur”, which means “chain” in Euskara, the Basque language. Bilur is unique for being the first cryptocurrency explicitly linked to the price of oil. By the way, the second part of the label “cryptocurrency”, namely the currency part, is a misnomer in my eyes. No existing cryptocurrency for the time being conforms to the three basic functions of money: a store of value, a unit of account, and a medium of exchange. One cannot store value in an asset that can get 30%–50% cheaper or more expensive in a matter of days.

One cannot use cryptocurrencies to measure value in economic transactions, because prices are mostly not displayed in cryptocurrencies and transaction costs are high and hidden for most people who would like to pay this way. One cannot, at least so far, use cryptocurrencies as a medium of exchange, because not many counterparties accept them. Therefore, cryptocurrencies are not currencies. To me, rather, they resemble commodities – pieces of code with some value for enthusiastic collectors. Which is fine. Its founders wanted to create something that – through the process of mining and the costs associated with it – would resemble a physical commodity or something physical. I would call it a commodity of the new digital era. But compared to vintage wine, art, or postage stamps, the amount of digital commodities is never really fixed, as proved, for instance, by last year’s split (or “fork” – I very much like this particular word) between bitcoin and bitcoin cash or the recent split between litecoin and litecoin cash. A piece of code is, in effect, easier to duplicate and improve upon. The fact that cryptocurrencies are rather commodities also shapes our light-touch, liberal approach to regulation at the CNB. We do not want to ban them and we are not hindering their development, but we are also not actively helping or promoting them and we are not protecting them or the customers that use them. Like in a casino, everyone investing in a cryptocurrency must be prepared to lose the entire bet.
Third, the foundation of growth must be based on good governance and provides economic opportunity for people across all segments of the society. Social stability cannot be sustained with only selected few enjoying the 2  benefits. Having said all this, one necessary foundation in support of achieving these goals is to have a wellfunctioning legal framework that promotes governance, productivity, sustainability and equal opportunity. For Thailand, there is much room to improve on our legal framework. In a fast changing world, specifically with technology and liberalization, laws can quickly become outdated, stalling business progress and creating high costs of compliance, especially for SMEs. At the same time, new risks may not be properly regulated as dynamic technological and social progress has created the needs for regulation in areas once not deemed necessary. Therefore, it is the responsibility of the policymakers to continue to improve the legal framework to support their policies and goals. For these reasons, I want to highlight a set of laws – mainly laws relevant to businesses that will support and shape Thailand’s future business landscape. Some of the laws that I will discuss are already in effect; some are being reviewed at the National Legislative Assembly; and some are being considered at the Council of the State after having been endorsed by the cabinet.

This would include not just decisions to purchase products, but also in their day-to-day actions such as in their spending and saving habits. It should also include understanding how we can help consumers avoid making mistakes, such as to fall into scams – not just investment scams and get-rich-  2/3  BIS - Central bankers' speeches  quick-schemes, but also scams that use social engineering to trick customers into divulging their banking and payment security credentials. As all of us here would know too well, scams have been gaining significant momentum since the pandemic, and continues to be a sinister threat not just in Malaysia but also in other countries. Recognising this threat, BNM has instructed banks to step up security measures to protect their customers, and is working closely with law enforcement agencies to ensure swift action against perpetrators. But while these measures are necessary, they will not be sufficient without the first line of defence – that is, for consumers to remain vigilant, knowing how to avoid getting duped. This is ultimately a matter of financial and digital literacy. For this, the evidence-backed approach that today's Symposium is committed to in educating financial consumers will be a crucial part of the whole-of-nation approach needed to combat scams. Before I end my speech, I would like to reiterate that financial education is more relevant than ever in the post-pandemic era.
I call on all parties to continue the discussions but more importantly to move from talking to doing. In order to help this situation as well as the economy, at the CBC we also initiated a project to digitise the banking sector's client onboarding process as well as the exchange of customer information between banks. Let me be clear: this is not the responsibility or remit of the central bank. However, I decided for this to happen in order to push this technological change in the banking sector. We set this project as a priority and obtained the commitment of Cyprus banks to embrace and participate in the project. We are now at an advanced stage of formulating the technical and legal requirements for the project. The project, as envisioned by the CBC, will be a flexible and scalable solution to be implemented in phases. Phase one, will be the remote digital onboarding of new customers through a seamless digitalised process and an optimised customer on-boarding experience, thereafter expediting the remote updating of customer data and information. Digitalisation of the onboarding process will initially focus on Cyprus citizens, allowing for expansion to include EU and non-EU citizens as well as legal entities and, to the extent possible, similar structures. In other words it will learn to walk before it will run. Phase two will roll out an interoperability solution with utility service providers and governmental services, allowing for possible incorporation of electronic IDs as provided for in the European Regulation.

All-items HICP reached 7,5 per cent in March from 5,9 per cent in February. The rising inflation, is increasing the production costs of firms and is eroding disposable income. The war has heightened the uncertainty of future price developments and the pace with which supply bottlenecks will recede. In parallel, new pandemic restrictive measures in China, for example the closing of the city of Shanghai and its port, which is considered the busiest port in the world, also accentuate supply chain difficulties. Energy prices, which were driven even higher after the outbreak of the war, now stand 45 per cent above their level one year ago and continue to constitute the main reason for the high level of inflation. Overall, inflation pressures are projected to remain strong in the shortterm undermining business and consumer confidence. The main challenge for monetary policy now is to control inflation without jeopardising economic recovery. This requires careful attention of all these elevated uncertainties and their implications on the evolving economic outlook. The complication is that the inflation pressures result mainly from the supply side shocks which cannot be remedied via monetary policy. Higher interest rates will neither restore supply chains nor reduce energy prices. For this reason, at the ECB Governing Council, we have already began adjusting certain monetary policy instruments such as the Pandemic Emergency Purchasing Programme and the Asset Purchasing Programme, reducing significantly the bonds bought by the national central banks of the euro area members states. In other words monetary tightening has already begun.
It does not itself have the force of law, but failure to adhere to the standards may call into question whether the bank continues to satisfy the criteria for authorization laid down in the Banking Ordinance. The draft guideline describes the general responsibilities of the board, the legal obligations of directors and the use of auditors. It then goes on to specify detailed guidelines to which locally incorporated authorized institutions are expected to adhere. Let me summarise these for you. While I will refer to  BIS Review 24/2000  2  the guidelines in relation to banks, most of them are also applicable to restricted licence banks and deposit taking companies. •  First, the board should ensure that the bank establishes policies, procedures and controls to manage the various types of risk with which it is faced. Altogether the HKMA has identified eight types of risk for the purposes of its supervision. These are credit, interest rate, market, liquidity, operational, reputation, legal and strategic risk. The board should approve the relevant policies while management should put them into effect. It is important that the policies should not exist merely for form’s sake - in other words, just to keep the HKMA happy - but should dictate how the institution is actually run in practice. •  Second, the board should ensure that the bank fully understands the provisions of section 83 of the Banking Ordinance on connected lending and establishes a policy on such lending.

We will be aiming to ensure that the final version of our guideline embodies this approach. BIS Review 24/2000  4
In that sense, the ECB’s response with unconventional measures is completely logical. When unconventional measures are applied, it is normal to have different views about their effect, including the possibility of a “Japanese” scenario. It would be wrong, however, to put the focus solely on monetary policy without taking into account what is being or not being done to address the global economic uncertainty, and also in the areas of structural reforms and fiscal policy. You have said many times that in order to be effective, the politicians’ attempts to stimulate the economy must be aimed at structural areas, like the labour market, pension reforms and education. What room for action do Bulgarian politicians have when these three areas are concerned? Do you believe that there are unused opportunities? Such opportunities exist, but they are associated with complex and sometimes time-consuming measures. They are not limited only to the labour market, pension reforms and education, but also extend to areas like health care, defence, the modernization of the technical and social infrastructure. Some steps in these fields require serious public resources. It is a good sign that they are implemented within an overall disciplined fiscal framework. Quite a few economists say that the 2% inflation goal, set by the ECB, is a thing of the past given the ageing population and structurally transforming technologies. Do you believe there are grounds to correct this goal? 2/3  BIS central bankers' speeches  There are grounds to conduct a strategic review of the monetary policy’s goals.

Most notably, as the SVC integrates several processes, it is fast, efficient and safe. In equity trading, “straight-through processing” has technically reduced “time to settlement” to as little as four seconds, though in market practice the settlement cycle for equities is three days. Domestically, the system is inexpensive and the price of trading has decreased significantly in recent years. “Straight-through processing” has also been applied to and strengthened the Swiss repo market, where not a single “fail”, i.e. a settlement that is one or more days late, has occurred in the interbank repo transactions since May 2009. In terms of automation, the integrated Swiss approach compares favourably to other systems of its kind. Despite the omnipresence of electronic systems worldwide, only one third of all repo transactions in Europe are in fact handled by automatic trading systems such as BrokerTec, Eurex Repo or MTS. In several national markets, most steps are still performed manually.8 As the Swiss value chain was built in the mid-1990s, it was a frontrunner in the move towards straight-through processing. It is still a “state-of-the-art” set-up, but this is no time to be complacent in view of the ever-increasing strengths of competing systems. Given its high level of performance, it is interesting to observe that the Swiss value chain is the result of a typically Swiss form of collaboration, known as “Gemeinschaftswerk”. The principle of “Gemeinschaftswerk” has been vital in shaping and maintaining Switzerland’s FMI.