samchain/econo-pairs-v1 huggingface dataset:
A number of initiatives have been launched to achieve progress in this field, relating in particular to the implementation of the industry’s Code of Conduct and the removal of the so-called Giovannini barriers. A crucial complementary step towards an integrated European securities market infrastructure would be to establish a common securities settlement platform. This is the objective of the Eurosystem’s TARGET2Securities (T2S) initiative. Under T2S, cross-border transactions will be settled at the same price and as efficiently as domestic transactions. Moreover, the T2S settlement cost will be significantly lower even than the cost today of domestic transactions. If T2S existed now, the average settlement cost could be reduced very substantially. If the geographical scope of T2S were extended beyond the euro area, substantial further cost savings would be achieved. In addition to the pure settlement cost, banks and other users would also enjoy substantial back office and collateral savings. The details of the economic impact analysis of T2S are set out in the proposal by the ECB’s Governing Council’s proposal for all European central securities depositories to join the T2S project. This proposal also includes the user requirements that have been developed in close co-operation with hundreds of experts from central securities depositories (CSDs), banks and central banks. The entire documentation, which was sent to the CSDs on 23 May 2008, is available on the ECB’s website.

Recent studies by the ECB and the European Commission have clearly shown that a lengthy period of processing the old national and the new SEPA instruments in parallel will be costly for both banks and their customers. Therefore, this period of dual processing should be kept as short as possible. Responding to the global financial market correction Financial integration is proceeding not only within Europe, but also at the global level. Financial globalisation enables the international community to share significant benefits in terms of enhanced financial efficiency and economic growth, but it also makes the safeguarding of financial stability a more interdependent endeavour. Effectively coordinated international action aimed at addressing financial system vulnerabilities has therefore become very important, as highlighted during the ongoing financial market correction. Against this background, the major collective effort undertaken by both the public and the private sector to cope with the financial market turbulences has been encouraging. Hard work has been done in terms of restoring the orderly functioning of financial markets in the short term and identifying proper measures to strengthen the resilience of the financial system in the longer term in order to avoid the recurrence of similar events in the future. The report of the Financial Stability Forum (FSF) on “Enhancing Market and Institutional Resilience” 3 has been fully endorsed by the international community and provides the main reference point for the necessary improvements.
Needless to say, the beneficiaries of such efforts will be our own economies which we are striving to develop as quickly as possible. 6  BIS Review 24/2007

The strong and close bond has continued to evolve in the areas of trade, investment, education and finance. While the bilateral trade in goods between the United Kingdom and Malaysia only accounts for 1.4% of our total trade, Malaysia's bilateral trade in services with Britain accounts for 6.3% of our trade in services in 2008. While the balance of trade is in our favour, the balance in the services account is in the favour of the United Kingdom amounting to RM2.3 billion. In the area of mobility of people between our two countries, there continues to be a significant two-way flow relating to employment, education and tourism. Tourists from Britain represent the largest group of visitors from the European market. In the area of education, there are a great number of Malaysian students studying in the United Kingdom. This has been reinforced by the twinning programmes. In addition, British education for Malaysians has been strengthened by the branch campuses in Malaysia. More recently, the relationship building has extended into the area of Islamic finance. This relationship was cemented with the signing of a Memorandum of Understanding between the UK Trade and Investment and Bank Negara Malaysia. The early development of Islamic finance was very much domestic-centric. This recent decade has seen the internationalization of Islamic finance. This has increased the potential for strategic partnerships between international financial centres that will bring with it mutually reinforcing benefits.
Furthermore, some areas of the financial system are still not yet adequately covered by regulation, for example leverage in the non-bank financial sector. In my remarks today, I would like to elaborate on the interaction between monetary policy and macroprudential policy. I will first review the conceptual framework for monetary policy and financial stability and then look at how, at this stage of the cycle, macroprudential policy and monetary policy can best complement each other in the pursuit of their respective objectives. Monetary policy and financial stability Price stability and financial stability are tightly interconnected and mutually reinforcing; in the longer-term, each is a necessary – but not sufficient – condition for the other. Price stability contributes to the efficient allocation of resources in the real economy, thereby supporting longterm growth. A stronger and more stable macroeconomic environment contributes to healthy household and business balance sheets, thereby fostering financial stability. However, history abounds with cases where financial vulnerabilities were built up in good times, while market participants overly discounted the likelihood of adverse shocks. Financial instability is basically the result of market failures, which should be addressed by regulation (covering the time and cross-section dimensions of financial stability). Deficient regulation can lead to excessive leverage and maturity transformation, which may in turn result in funding fragilities and systemic vulnerability.

2 For a detailed discussion, see Frank Smets (2014), “Financial Stability and Monetary Policy: How Closely  Linked”, International Journal of Central Banking Vol. 10 No. 2. 3 See Markus Brunnermeier and Yuliy Sannikov (2014), “A Macroeconomic Model with a Financial Sector”,  American Economic Review Vol. 104, No. 2, February. 4 For a quantitative evaluation of the relevance of the Tinbergen’s principle in this setting, see Julio A. Carrillo,  Enrique G.Mendoza, Victoria Nuguer, Jessica Roldán-Peña, (2018), “Tight money – tight credit: coordination failure in the conductof monetary and financial policies”, ECB Working Paper No 2129. They show that a regime with separate financial and monetaryinstruments yields significant welfare gains. 5 See Jeremy Stein, “Overheating in Credit Markets: Origins, Measurement and Policy Responses”, speech at the  Federal Reserve Bank of St. Louis Missouri, 7 February 2013. He actually concluded that while policy rates have the ability to reach into all corners of the economy, it would be better to use targeted supervisory and regulatory measures to address localised imbalances as they have less potential to damage the economy. 6 L. Christiano, C. Ilut, R. Motto and M. Rostagno, “Monetary Policy and Stock Market Booms”, paper prepared for  Macroeconomic Challenges: the Decade Ahead, A Symposium Sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming August 26 28, 2010. 7 See Financial Stability Review, European Central Bank, May 2018. 5/5  BIS central bankers' speeches
Government support measures to shield the economy from the impact of high energy prices should be temporary, targeted and tailored to preserving incentives to consume less energy. In particular, as the energy crisis becomes less acute, it is important to now start rolling these measures back promptly in line with the fall in energy prices and in a concerted manner. Any such measures falling short of these principles are likely to drive up medium-term inflationary pressures, which would call for a stronger monetary policy response. Moreover, in line with the EU's economic governance framework, fiscal policies should be oriented towards making our economy more productive and gradually bringing down high public debt. Policies to enhance the euro area's supply capacity, especially in the energy sector, can help reduce price pressures in the medium term. To that end, governments should swiftly implement their investment and structural reform plans under the Next Generation EU programme. The reform of the EU's economic governance framework should be concluded rapidly. Inflation According to Eurostat's flash estimate, which has been calculated using Eurostat estimates for Germany, inflation was 8.5 per cent in January. This would be 0.7 percentage points lower than the December figure, with the decline owing mainly to a renewed sharp drop in energy prices. Market-based indicators suggest that energy prices over the coming years will be significantly lower than expected at the time of our last meeting.

The Governing Council today also decided on the modalities for reducing the Eurosystem's holdings of securities under the asset purchase programme (APP). As communicated in December, the APP portfolio will decline by € billion per month on average from the beginning of March until the end of June 2023, and the subsequent pace of portfolio reduction will be determined over time. Partial reinvestments will be conducted broadly in line with current practice. In particular, the remaining reinvestment amounts will be allocated proportionally to the share of redemptions across each constituent programme of the APP and, under the public sector purchase programme (PSPP), to the share of redemptions of each jurisdiction and across national and supranational issuers. For our corporate bond purchases, the remaining reinvestments will be tilted more strongly towards issuers with a better climate performance. Without prejudice to our price stability objective, this approach will support the gradual decarbonisation of the Eurosystem's corporate bond holdings, in line with the goals of the Paris Agreement. The decisions taken today are set out in a press release available on our website. The detailed modalities for reducing the APP holdings are described in a separate press release to be published at 15:45 CET. I will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions.
In these circumstances, it is vital that the gain in the share of our sales, both abroad and at home, should be the main driver of activity in Spain. And, accordingly, achieving sustained competitiveness gains, which must come from the implementation of ambitious supply-side reforms and measures, is crucial. If these reforms and measures should restore confidence in the Spanish economy, reduce financing costs and improve the foundations for future growth, 2013 may witness a recovery. In this situation, the 2012 Budget forms part of a more general medium-term consolidation strategy, requiring the collaboration of all levels of government. Details will be available in a few weeks, when the Government presents the Stability and Growth Programme to the European authorities. The Stability Programme should contain precise and explicit details of all the elements on which this consolidation process will be based. The targets set by this Programme must anchor the budget measures of the coming years, ensuring that the general government deficit can be reduced to below 3% of GDP in 2013 and, subsequently, that a balanced budget can be achieved. In addition, they must seek to stabilise the public debt ratio and subsequently reduce it to below 60% in 2020. The fiscal consolidation so defined must be considered unavoidable and necessary to restore economic growth in the medium term, although the size and timing of the adjustment required may have negative effects on activity in the short term.

In this respect, in the opening months of this year, the Government set in train various regional and local government support mechanisms in order to smooth the refinancing of their existing debts or payment to trade creditors. The financing mechanisms agreed also require fulfilment of adjustment plans. It is now crucial to insist on strict compliance so that this type of aid does not provide inappropriate incentives. The consolidation strategy must, finally, be completed while keeping in mind the mediumand long-term factors affecting public finances, particularly those deriving from the pressure  6  BIS central bankers’ speeches  exerted by population ageing on certain items of expenditure. In this connection, following the enactment in July 2011 of the Social Security Reform Law, an appropriate definition of sustainability is needed as soon as possible so that the system’s parameters may be automatically adapted to demographic changes. In short, the current budgetary imbalance has become one of the main obstacles to growth of the Spanish economy. Correcting it is urgent and unavoidable. What is thus needed is a fiscal adjustment strategy based on commitments made at European level. This strategy has to be accompanied by a strengthening of the national budgetary framework, as reflected in the constitutional reform, and by the application of the medium and long-term reforms that enable the challenge of population ageing to be addressed.
We have therefore appointed a special commission of inquiry into the Swedish housing market – a broader and more coherent approach which will supplement the analysis of individual issues that we and others conduct. The inquiry will be based on two perspectives – financial stability and monetary policy. …not just the Riksbank’s field Having said this, I would like to point out, or rather repeat something I have mentioned on previous occasions. Monetary policy can probably only function as a complement to effective regulation and supervision. Moreover, households have a responsibility to make realistic assessments of what interest expenditure they can manage in the long run. The current interest rate reflect the management of an acute crisis and not monetary policy under normal circumstances. And as shown in our interest rate forecast we will probably begin raising the repo rate within six months. The banks must also make responsible assessments when lending money. Here Finansinspektionen, the Swedish financial supervisory authority, plays an important role due to its task of examining banks and credit institutions from a consumer perspective. Finansinspektionen also has the possibility to implement more targeted measures than the Riksbank has. The repo rate is a blunt instrument that affects the whole economy. In February Finansinspektionen warned that even moderate falls in house prices could mean that a number of households have mortgages that exceed the market value of their property. Finansinspektionen believes there is reason to consider new regulations regarding household loans in relation to collateral to create better margins.

BIS central bankers’ speeches  7  Table 2: Size of central bank balance sheets UK  US  Japan  Euro area  Mar 2013 (% nominal GDP)  26  19  34  31  Increase since Dec 2007 (pp of nominal GDP)  20  12  13  18  Sources: Datastream, Bank of Japan. 8  BIS central bankers’ speeches
China continues to be a source of risk, since it still has to resolve  4  imbalances in several of its markets. Added to this is the evolution of the oil price. If it increases or remains flat for longer than expected, it could have stronger effects on global growth and inflation. The bias and probability of external risk scenarios reinforces the need to maintain solid macroeconomic fundamentals, particularly for a small and open economy such as Chile’s. Actually, the recent events have had greater impacts in countries with greater indebtedness, fiscal deficit and / or current account deficits. At home, we estimate that the risks for activity are biased upwards. The data of the last few months have been higher than expected and we cannot rule out a scenario in which this greater dynamism persists, especially if investment improves above projections. This risk is partly moderated by the possibility that the labor market, and in particular private salaried employment, could take longer than expected to respond to the higher growth rates. On inflation, we estimate that risk balances are unbiased. The downward risks for its convergence to 3% have moderated. However, we forecast that CPIEFE inflation will remain below 2% for a while longer, considering that the determinants of inflation’s convergence to 3% in the medium term have not change significantly from March.

In part, this translates into well-anchored inflation expectations, which give monetary policy more room for maneuvering. On the other hand, Chile is committed to a free-float exchange rate that is more comparable to the situation of developed economies than other emerging economies, with fairly stable long-term rates along with the aforementioned depreciation of the currency. Even so, exchange rate adjustments can have significant effects on the local economy in as much as economic agents exhibit significant mismatches in their balance sheets. In the same way, exposure to interest rate and refinancing risks can amplify the economic impact of even mild changes in lending standards. In other words, not only the level of indebtedness is important, but also its composition and its relationship with financial assets. This helps explain why a floating exchange rate regime is the more effective in cushioning external shocks the more developed the local financial system is. In this sense, the data available for Chile indicate that the main Chilean economic agents (i.e. companies, banks, households and government) have moderate levels of exposure to exchange rate and financial risks, as a result of either its regulations or the development of financial products. In the case of banks, the stress tests we perform regularly in the context of our Financial Stability Report show that market risk, which includes interest rate risk, is low compared to credit risk. Similar results are found for the corporate sector, where a shock to the interest rate has a low impact on performance.
Turning to price developments, let me first recall that, over recent months, annual rates of consumer price inflation have been affected by several factors of a special or temporary nature. This volatile pattern was broadly anticipated. However, annual inflation rates are currently somewhat higher than was expected a few months ago, with early estimates for March pointing to a figure of 2.5%. This is mainly because oil prices have again risen significantly in the more recent period. If sustained, higher oil prices would also have an impact on inflation rates in the remainder of 2002. While inflation rates are expected to fall to below 2% later in the coming months, this decline may possibly be less pronounced than was foreseen, and inflation rates during this year could turn out to be somewhat higher than previously expected. Beyond the shorter term, upward pressure on prices from aggregate demand should, in the light of current projections of a gradual economic recovery in the euro area, remain contained. In addition, the outlook for inflation is fundamentally dependent on wage moderation. Such moderation is important not only in order to contain risks to price stability but also to foster employment growth. As I have already noted on earlier occasions, there is some cause for concern with regard to ongoing wage negotiations. BIS Review 22/2002  1  Fiscal policies in the euro area can also contribute to the maintenance of a favourable outlook for non-inflationary growth.

European Central Bank: Press conference - introductory statement Introductory statement by Mr Willem F Duisenberg, President of the European Central Bank and Mr Christian Noyer, Vice-President of the European Central Bank, at the press conference, held in Frankfurt, 4 April 2002. *  *  *  Ladies and gentlemen, the Vice-President and I will now report on the outcome of today's meeting of the Governing Council of the ECB. As usual, we examined recent monetary, financial and economic developments. The Governing Council concluded that the current level of key ECB interest rates remains appropriate for the maintenance of price stability over the medium term and, accordingly, decided to leave them unchanged. Starting with the analysis under the first pillar of our monetary policy strategy, the three-month average of the annual growth rates of M3 stood at 7.8% in the period from December 2001 to February 2002, compared with 8.0% in the period from November 2001 to January 2002. The high level of the annual growth rates of M3 continues to reflect the past portfolio shifts to liquid positions. These shifts primarily occurred during autumn 2001, when the economic and financial environment was characterised by high uncertainty. However, in the meantime, some normalisation in the development of M3 has taken place. This is indicated by a significant slowdown in the short-term dynamics of M3 in early 2002, a period in which the annual rate of growth of loans to the private sector has also continued to decline.
This is a reflection of the unusual and difficult economic conjuncture that we have been going through, combined with the challenge of determining the scale and nature of, for instance, loan forbearance. This is particularly evident in areas like commercial property lending where there is a hump of loan refinancing to come and a quite sharp tiering of performance among assets. Second, the euro area, and the possible impact of disorderly break-up, should that happen (and in saying this, I offer no view on whether it will happen), could have a sizeable impact on many banks. But here the FPC faces another very difficult judgement, namely what scale of so-called tail risk – the losses from low probability but high impact events – do we wish to see covered in the capital held now by banks? In other words, how much insurance should come from capital providers? The broad answer is a lot, but that does not tell us how much,  BIS central bankers’ speeches  3  and in the limit there are utterly catastrophic risks for which it is not sensible to hold capital as the answer. Third, when we look at the low market value of some banks relative to their book value, how much of this should we attribute to lending margins being considerably lower than they were expected to be? Net interest margins are squeezed in the current environment.

Giving more information may induce not more, but less, clarity among market participants, as there are limits to how much information can be digested effectively.6 The public may not easily understand the uncertainty and conditionality surrounding central bank forecasts.7 Or worse still, agents might come to realise how uncertain the central bank is about economic conditions.8 Sometimes, it is just not feasible to provide that degree of clarity out in the public. Second, central bankers need to think about the potential interaction of greater transparency with the path of future monetary policy decisions. Policy expectations engendered by communication may unduly constrain policy action. Indeed, empirical evidence suggests that there can be too much of a good thing, although anchoring the optimal degree of central bank transparency still proves elusive. A number of studies have found diminishing returns to central bank transparency on market expectations.9 Others also found that disseminating specific and detailed information, such as full meeting transcripts, provides little marginal value over more concise communication, such as policy meeting minutes, in terms of guiding market expectations.10 2/5  BIS central bankers' speeches  There are a set of papers showing that more information can result in destabilising market expectations.