samchain/econo-pairs-v1 huggingface dataset:
It should also be developed as our knowledge of the functioning of the financial sector increases. With financial companies operating in several countries, the division of responsibilities among authorities in different countries will become an important issue. In Europe, a process has begun to line up a division of labour between central banks and other authorities as well as between the national central banks and the ECB. For the new structure to be efficient and stable, it is important that the roles and objectives of different actors are well defined. There are risks inherent in this process, however. The new system may prove too bureaucratic, stressing stability at the cost of efficiency. Also, it is important to prevent turf wars from dominating rational discussions about new challenges. Not only is it important that the objectives of central banks are clear. It is also vital that the necessary means are available and can be applied. The advantages of delegating monetary policy to an independent central bank have been analysed fairly extensively in academic research. The main argument for delegation is that politicians can avoid the temptation to use monetary policy for short-term stimulation of output and employment. The collective experience of previous years - and from academic research - is that such stimulation often runs the risk of leading to wage-price spirals, which in the end can have severe implications for welfare in society. A parallel argument can be made concerning policy for financial stability, although it is still a rather unexplored topic in economic literature.

One of the most important is determined by what we know about the functioning of the economy and the effects of monetary policy. Not everyone agrees, however, that transparency is a good thing for attaining financial stability. Many people argue that so-called constructive ambiguity is the best way to avoid problems of moral hazard in the banking industry. I believe, however, that transparency is important in this area as well. Banks that are "too big to fail" from a systemic point of view will in any case count on support from the government. Especially when it comes to countries like Sweden, which experienced a severe banking crisis not so long ago, it is likely that support to banks that encounter financial problems will be expected if nothing else is being communicated. Another risk associated with constructive ambiguity is that it could limit the motivation of central banks to seriously consider what to do in a crisis. In other words, it could provide an excuse for not thinking the issues through. However, if you are not prepared, you could easily become the bank's prisoner in a time of crisis. Through deeper analysis of the "too big to fail" problem and open communication of crisis strategies, it should be possible if anything to mitigate the moral hazard problem. If you can show that the banks do not need to be systemically important, it should make banks even more uncertain about the possibility of receiving support than any policy of constructive ambiguity.
There are economies of scale in the beta function. We see commercial managers that are providers of beta-exposure that are up to 15 times the size of the Government Pension Fund. Yet we are able to perform these tasks more cost-efficiently in-house. Hence we believe we now are sufficiently large so as to harvest most of the benefits of scale. Economies of scale are more elusive when it comes to active management. On the one hand the excess return potential is reduced because there will be a higher degree of market impact. On the other hand, size can be an advantage in obtaining access to information and in active positions where the objective is to reap the benefits of being a liquidity provider. The setting for the Government Pension Fund with its long investment horizon is well suited for such an objective. All of the passive investment (enhanced indexing) is done internally both for equities and fixed income. On the active side however, we use a large number of external managers. The split differs between equities and fixed income. On the fixed income side, most of the active risk is taken internally while the opposite is the case for equities. In total, about 60 per cent of the active risk stems from external managers. The guiding principle behind this choice is an assessment of expected returns after costs, and a strong belief in diversification among managers. There is no favouring of internal (or external) managers.

Paris FinTech Forum – 25 January 2017 Speech by François Villeroy de Galhau, Governor of the Banque de France and Chairman of the Autorité de contrôle prudentiel et de résolution  France: a European powerhouse for financial service innovation  Good morning to all of you. I am delighted to be here today. Who could have imagined just a few years ago that a central banker would be making an appearance at a forum on innovation? I remember when we first met up, about a year ago, with the developers from the start-up Labo Blockchain to work on a Proof of Concept, everyone from the Banque de France had made an effort: they’d dressed casually for the occasion… except that all the developers had decided to turn up in a suit and tie. It was a complete role reversal! But things change very rapidly. Today, our dealings with innovators go far beyond any of the assumptions we might have had about each other: the Banque de France is testing blockchain technology and is opening a LAB to work with start-ups; the ACPR (the supervisory body which I chair) has welcomed more than 100 key innovators since the creation of its FinTech Innovation Unit, and has set up a FinTech Forum with the AMF to increase our interaction with innovators.
Depending on the resolution there and the progress of the EU accession negotiations, the problem could be resolved in connection with the accession process itself. At this point, it is unclear what form such outside assistance would take, but the more it takes the form of declarations concerning limits to exchange rate fluctuations backed by credibility and strong ability to intervene in the foreign exchange market, and the less it takes the form of offering loans, the better. On the other hand, it appears inevitable that, if Iceland joins the euro area, it would be necessary to convert all krónur at the same exchange rate, for the same reasons as with a currency board or unilateral adoption of another currency. Although the interaction between the capital controls and Iceland’s currency options is complex in many respects, this is not true to the same extent of prudential rules restricting the international activities of domestic financial institutions. For instance, it would be safe to relax such rules if Iceland were a member of the euro area and its financial institutions could carry out a large share of its cross-border business in its home currency. This would be even more true if the EU framework for cross-border banking were reformed so as to provide for EU supervision of banks operating throughout the region, a pan-European deposit insurance scheme, and intervention in distressed financial institutions by a joint EU body.

As well, the ability of many accountants to hide a substantial volume of very large transactions “off the balance sheet”, contributed to the demise of many of these large financial institutions. I mention this to highlight the critical roles that Accountants can play in maintaining financial stability in national economies and thereby the global economy as a whole. The stable economic environment that Samoa has enjoyed over the past many years is also partly due to the responsible way that the members of the Samoa Institute of Accountants have carried out their duties. And, I commend and thank you all for that. Let me now say something about our economy, interest rates and a bit about the Central Bank’s expanded mandate. 2. Economic update for the first seven months of 2009/10 and outlook for the remaining five months  Mainly, as a result of the Global Financial Crisis, the Samoan economy declined by close to 5 percent in the last financial year which ended in June, 2009. So, as we tried to get our economy out of recession, through the introduction of expansionary fiscal and monetary policies, the country was struck by the devastating tsunami in September. In the event, Government and private sector resources were diverted for the rehabilitation and reconstruction of tsunami affected infrastructure and other sectors, and thus putting on hold (albeit temporarily) a number of developments identified in the 2009/2010 budget.
2  BIS central bankers’ speeches

Looking at the region as a whole, after some very difficult years, inflation has come down dramatically from very high levels at the beginning of transition to single-digit levels today. Long-term interest rates have also fallen substantially, reflecting the gradual anchoring of inflation expectations. The countries of the region have also made remarkable progress in terms of institutional and structural convergence. In particular, we have witnessed the building of appropriate institutions, increased trade integration with the euro area and improvements in the business environment. Naturally, this progress has been reflected in per capita income convergence. Over the last 20 years, per capita income has risen to an average of 63% of the EU average if adjusted in terms of Purchasing Power Parity (PPP). But combining low inflation with real convergence has posed a serious challenge in many countries. Let me elaborate on this. The very process of real convergence entails upward pressures on prices, which can be hard to avoid in terms of both relative prices and the overall price level. Among other things, these pressures stem from high productivity growth as well as the processes of price liberalization and tax harmonization. Price increases related to productivity growth are usually referred to as the BalassaSamuelson effect. But most studies have found this effect to be relatively limited.1 Convergence in price levels, which stood on average at two thirds of the EU average in 2010, seems to have surpassed convergence in income levels in all countries of the region.
This risk is tempered in part because the stagnant creation of private salaried jobs and weaker growth in nominal wages continue to be causes for concern. In any case, different surveys show that the companies have improved their prospects for employment and investment in recent months, reflecting their better growth expectations (figure 10). About inflation, the Board estimates that risks are unbiased. The threats to its convergence to 3% are milder, primarily due to the way the improved economic outlook affects the closure of capacity gaps. However, the evolution of the exchange rate over the coming months will pull inflation down below the December expectations, a situation that the Board will continue to monitor with special care, given that it could have negative implications on the convergence of inflation to the target in the policy horizon. In short, as I noted at the beginning, this Report clearly shows a turning point in the business cycle that translates into an upward revision of the growth projections for 2018, giving way to lower risks for both activity and inflation. Anyway, in the baseline scenario that we have just presented, we consider that the risks for inflation and an economy that has yet to consolidate its greater dynamism make it necessary for the monetary stimulus to persist further. Therefore, we will only begin to raise the MPR when we are certain that the process of inflation converging to 3% is consolidating.

Under this initiative, four member economies of APEC - China, Thailand, Mexico and the Philippines - have volunteered to receive expert advice through visits from panels of experts. The objective of these visits is to assist the economies in question in identifying potential impediments in their markets and in removing these impediments through specific, achievable and monitored action plans tailored to the individual economy. The programmes under this initiative are making good progress, and, in addition to the panel visits, two policy dialogues have been held to promote understanding and experience-sharing. A second cluster of initiatives, under the ASEAN+3 forum, involves a variety of studies known as the Asian Bond Market Initiative (ABMI) on issues such as new securitised debt instruments, issuance of debt by international financial institutions, regional credit guarantees and enhancement facilities, and the establishment of local and regional credit rating and credit enhancement agencies. The third set of initiatives falls under EMEAP - the Executives’ Meeting of East Asia-Pacific Central Banks - and takes the form of bond funds aimed at channelling a small portion of the very large official reserves held by the Asian economies into the region. The first of these funds - Asian Bond Fund I (ABF1) - was launched in June 2003 and is now fully invested in US dollar-denominated bonds issued by sovereign and quasi-sovereign issuers in the EMEAP economies. The EMEAP Central Banks are currently working on ABF2, which will invest in local currency-denominated Asian bonds.
For monetary policy in developed countries, this process has been equivalent to a sequence of positive supply shocks that took the form of a spontaneous decline in the import price of manufactured goods. All other things being equal, this terms-oftrade gain has allowed for a lower inflation rate for a given capacity utilisation rate. More fundamentally, and although things seem to be less straightforward in this area, it is possible that the increasing openness of our economies have structurally changed the wage and cost formation process in a manner that favours price stability. It is clear that heightened competition triggered by imports reduces the market power of firms at the national level. But, other more indirect effects are also detectable. According to studies carried out at the Banque de France, to be published in our next Monthly Bulletin 2 , the disinflationary impact of imports appears to be relatively independent of import volumes: the mere existence of potential competition renders the markets, in the words of experts, more “contestable” and influences behavioural patterns. These disinflationary forces are still present. However, there are now other more powerful forces that have the opposite effect. 1  V.Chauvin, D.Irac, N.Maggiar et H.Poncet, « L’information apportée par les anticipations d’inflation sur les salaires et la consommation dans la zone euro » ; J.Coffinet et S.Frappa, « Anticipations d’inflation dans la zone euro : que nous disent les marchés financiers ?

Christian Noyer: Is inflation set for a comeback? Speech by Mr Christian Noyer, Governor of the Bank of France, at Deutsche Bank, Paris, 19 March 2008. *  *  *  With inflation surging everywhere, it is quite natural to wonder if we could have reached the end of this worldwide era of “great moderation” in both output and price volatility which has characterized Alan Greenspan’s tenure of office. True, one could argue that we are just experiencing one-off shocks in commodity and food prices whose inflationary consequences will wane rapidly thanks to the increased flexibility of our economies. But other possible scenarios are more worrying. Second-round effects could, after years of relatively well contained wages, be triggered by shifts in inflation expectations; through the catching-up of developing economy, the globalisation process could have become inflationary; the ageing of our developed European economy, the necessary fight against global warming could structurally add inflationary pressures,.... and the room for monetary policy decisions could be restricted by the state of the financial and banking system and by the risks of slowdown of growth. I would like to review these issues. In order to avoid any misunderstanding let me immediately make my point. Even if it is clear that inflationary pressures have both increased and changed in their nature, I firmly believe that monetary policy can still ensure price stability, over the medium term.
To make things worse, the “originate-to-repo” transactions that took off when the turmoil started in July 2007 have often little in common with the “originate-to-distribute” assets that  2  BIS Review 84/2010  were marketed before mid-2007. Thus, the “originate-to-repo” securities do not aim at being attractive to investors, but serve a different purpose, namely to generate collateral buffers with the central bank. So, the significantly large volumes of retained issuance are effective indicators of the scale of the continuing dislocation of the ABS market and the vanishing of private markets. However, it should be obvious to everyone that the issuance of ABS only to serve as collateral with central banks cannot be a sustainable strategy for the ABS market. In normal times central bank operations are intrinsically of a short-term nature and of a limited size, and are designed to implement the stance of monetary policy. By contrast, ABS transactions backed by residential and commercial property loans have much longer maturities and must cover a very sizeable market. In other words, in normal times central banks tend to have a very limited involvement in financial intermediation and only private investors have the capacity and the need to offer long-term funding to originators. What are the more recent trends? Some developments in the last few months may be interpreted as showing tentative signs of a recovery as new ABS issues were distributed and placed with private investors .

Zeti Akhtar Aziz: Implications of emerging global economy trends for Malaysia Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, on the occasion of the International Women's Day Forum, Kuala Lumpur, 1 April 2008. *  *  *  Fundamental changes occurring in the international environment have dramatically altered the configuration of the global economy. A global shift is taking place resulting in a rebalancing of economic power. Accompanying these changes is the increase in the international mobility of talent and capital flows. In this more dynamic environment, comparative advantages and distinct capabilities are also shifting. This has resulted in a rethinking of the business models and the manner in which we operate to achieve performance. In addition, corporate cultures have needed to change. This reorientation has entailed reviews of the strategic focus, the strategies, approach and processes as well as the redeployment of resources. In conjunction with the International Women's Day that was on March 8, it is my honour to be here today to speak at this forum organised by Accenture. My remarks will focus on the implications of these newly emerging trends in the global economy on Malaysia. More specifically, to discuss the new future that is emerging before us, and the opportunities it accords. Equally important, is the ability to raise the level of our flexibility and capacity to adjust to these changing conditions.
Over the past decade, monetary policy has had to assume almost sole responsibility for getting these economies back on their feet. After a few years of solid growth in the euro area, growth has fallen back. The interest rate level in Europe remains low, and monetary policy normalisation will take time. In this environment, new negative shocks would be very untimely for those economies. The policy space available for coping with a new downturn is limited. CONCLUSION To conclude, globalisation, digitalisation and structural changes are facets of the same long-term trend – we are in the midst of a technology-driven growth process that encompasses much of the world. It is easy to focus on the downsides, but we must also keep our eyes fixed on the big picture: never before have so many taken part in a journey with such a great leap in prosperity. But growth is unevenly distributed. The winners in global competition are reaping substantial rewards, while broad categories of wage earners in the traditional industrial economies have been left behind. The harmful effects of rising inequality must be taken seriously. 15  Our friend Kristoffer from the year 2030 awoke to rain and mild weather, and the news that an electronic platform had been hacked. Perhaps the money he had on that platform had vanished. But some of the news was positive. Today’s two major economies, China and the United States, had worked together and made progress in addressing climate challenges.

Source: Norges Bank  If necessary, Norges Bank can supply liquidity to the payment system. Norges Bank is the bankers’ bank. 13  In addition, Norges Bank has a special responsibility for the payment system. The Bank oversees and supervises various components of the payment system and should drive new and efficient solutions. NORGES BANK ECONOMIC PERSPECTIVES 14 FEBRUARY 2019  Today, nearly all payments from customers’ bank accounts are made using deposit money.7 This is money created by banks. When people borrow money from a bank, the bank credits the same amount to an account. The money deposited was created at the instant the loan was made. Deposit money circulates through the banking system, in and out of people’s accounts and is only to a limited extent converted to cash. As long as we have confidence in both the value of the Norwegian krone and in the banking system, we will also have confidence in deposit money. The cash provided by Norges Bank has important attributes. While deposit money is a claim on a private bank, cash is a claim on the central bank. Cash is a safe alternative if private payment solutions are not functioning or do not meet the expectations of the public in terms of security and efficiency. Even though the use of cash has declined, cash is still in use and has important contingency functions. But new digital alternatives are emerging.