samchain/econo-pairs-v1 huggingface dataset:
The Swedish Telecommunications Administration’s monopoly began to break up as early as the 1980s, but the real turning point came in 1993, when the Administration was privatised as Telia. The market was opened up and exposed to competition; new challengers could gradually take over more than a quarter of the total market and a significantly greater part of the mobile telephony and Internet telephony segment. At the same time, technical developments were very rapid. Fiberoptics enabled lower costs for long distance calls and increased the speed of transfer of large amounts of data, which benefited the development of the Internet. Together, increased competition and rapid technological developments led to a fall in prices with regard to both telephony and Internet connection. The lower prices for users have probably contributed to the widespread use of the Internet in Sweden. The new technology was perhaps available in all essentials to all developed countries, but the views on deregulation varied. Only eight of the 25 member countries, today 30, of the OECD allowed competition in the telecommunications market, while the remaining countries retained a monopoly. There is also a clear connection between use of the Internet and competition. Competition is allowed in the telecommunications markets of six of the nine countries with the highest Internet usage. These countries have also experiences an increase in access to the Internet six times as fast as countries that have a monopoly market.

One example where the banks did not co-operate in the payment market is the service of digital invoicing systems. Up to spring 2002 the banks were offering two different, non-compatible systems, “e-giro” and “e-faktura”. The existence of two digital invoicing systems was an obstacle with regard to getting both companies and households to utilise the new technology. Today the banks are investing in making the systems compatible with one another and the goal is that invoicers and invoicees will be able to reach one another regardless of which bank they use. If this succeeds, it should lead to increased acceptance from customers and enable critical mass to be achieved more easily. Will cash disappear? The use of cash in Sweden has halved since the mid-1950s, which is of course a result of the technological developments with card payments and later Internet payments offering good substitutes for payment with banknotes. However, the decline in the use of cash has slowed down in recent years and the M0 money supply is currently around SEK 90 billion, or 4 per cent of GDP. Cash is suitable for certain types of transaction, including, unfortunately, those that people don’t want registered, and there is perhaps a lower limit for the demand for banknotes. In addition, the alternative cost for cash has been low in recent years, as a result of low inflation and low interest rates. However, the use of cash in Sweden is higher than in other Nordic countries.
President Dudley: Well, the fixed income market has been a good place to be because, basically, interest rates have been generally coming down, if you look at long-term bond yields. So, we would like to look at the government debt issue by the U.S. Treasury. Ten-year government debt is trading today about 2.4% which is pretty low, and credit spreads have narrowed over that period. So, fixed income has been a pretty good place to be invested in over the last 8 years. Same thing with U.S. equity market, though, for that matter. If you bought the U.S. equity market at the very bottom in 2009, it’s more than tripled in price since then. As an investor, you’ve done pretty well if you’ve stayed invested through that entire period. Now, I would expect that fixed income investing is going to be less attractive going forward because interest rates still are at a very, very low level. So, some of the gains that people have seen in fixed income have been really prices going up because interest rates were declining. And I think that you’re probably not going to see prices going up a lot because interest rates are declining going forward. So I would guess most likely, most people think that short-term interest rates will gradually rise over the next couple of years. That certainly is what the Federal Open Market Committee expects, and as that happens people generally expect that longer-term interest rates will eventually rise.

Improvements to risk management and to capital cushions are likely to have made the financial system more stable and more resilient. And macroeconomic policy has improved around the world. The increase in monetary policy credibility in a broad range of countries has produced lower rates of inflation and more stability in inflation expectations. Greater public confidence in monetary policy was critical to laying the foundation for the improvements in real economic performance, by providing a stable foundation for long-term investment decisions. In emerging markets, better monetary policy has been accompanied by more disciplined and conservative fiscal policy and a range of other policies that have reduced, though not eliminated, vulnerability to changes in confidence, capital flows and exchange rate movements. These factors are each fundamentally important, and they are, of course, interrelated. The policies that delivered better inflation outcomes, more openness and competition and stronger financial systems were critical to fostering an environment in which improvements in productivity and growth could occur. This expansion has also been notable for the financial conditions that have prevailed over the past several years. Long-term interest rates have remained relatively low in nominal and real terms. Equity and other asset prices have moved higher. Credit spreads have declined to quite low levels. Market participants report exceptionally high levels of liquidity. And volatility, both realized and expected, has remained low across many different types of financial assets, market and economies.
Whatever happens, monetary policy will be set to return inflation sustainably to target while supporting as best it can the necessary adjustments in the economy. ------------------------------------I would like to spend the rest of my time on another balance, or rather other imbalances, whose resolution will be an important determinant of our future prosperity. II. The Challenge of Global Imbalances With many concerned that global trade is taking local jobs, protectionist sentiments are once again rising across the advanced world. Excessive trade and current account imbalances are now politically as well as economically unsustainable. Perhaps because imbalances ultimately reflect savings and investment choices within a country, they are often described as morality tales with the virtues of Swabian housewives contrasted with the vices of the Anglo Saxon rakes. In fact, trade imbalances are natural features of an open system and can be warranted by differences in demographics, levels of development and expected paths for income. 3  3  Savings and investment imbalances will shift with changes in relative prices, including changes in prices of final goods and services, changes in nominal exchange rates, changes in relative production costs (including unit labour costs), and changes in the costs of trade. Lags and frictions will mean that different components will shift at varying speeds. This, in turn, can result in large adjustment costs not present in economic models, which can make a laissez faire approach risky.

In this environment, the UK is running a historically large current account deficit. On the positive side, the deficit is funded in domestic currency and financial reforms have increased the resilience of the UK system, thereby making larger imbalances more sustainable. But the UK’s deficit has also been associated with markedly weak investment and latterly with rapid consumer credit growth. This is not an imbalance that is, as yet, funding its eventual resolution. Moreover, despite the large depreciation around the referendum, the extent to which the UK’s deficit has moved closer to sustainability remains an open question, one whose answer depends crucially on the outcome of the Brexit negotiations. Most fundamentally, the UK relies on the kindness of strangers at a time when risks to trade, investment, and financial fragmentation have increased. III. Potential Solutions The world economy has been here before. In the 1930s monetary policy was exhausted and fiscal policy was in abeyance. The trap was sealed by a wave of protectionist measures originating in the US and spreading to Europe. As current and capital accounts closed, stagnation ensued. What should be done to prevent history from rhyming? In the simple world of the economist, the prescription is straightforward. Deficit countries should loosen monetary policy and tighten fiscal policy. Surplus countries should do the reverse. roll up its sleeves, it could easily solve this economic Sudoku.
Fourth, to ensure that those CCPs are not themselves Too Important To Fail – resolution again, plus rules to allocate losses amongst bank clearing members and others so that a distressed CCP can recover without going into resolution. Fifth, to ensure that the reregulation of banks does not simply cause the systemic risks associated with excess leverage and liquidity mismatches to be reinvented outside banks – the shadow banking reforms. And sixth, to make securitisation safer and more efficient – a complicated raft of reforms, including overdue steps to remove mechanistic reliance on Credit Rating Agency ratings. Cumulatively, those reforms will change the face of global finance – for the better. But no doubt there will also be effects that have not been anticipated, resulting in a need for running repairs – a point to which I will return. The work to produce the reforms has also revealed conceptual gaps and flaws in the inherited regulatory framework that will, sooner or later, need to be addressed. That is where I shall begin. The capital framework: going concern v. gone concern loss-absorbency Perhaps most important, policymakers have focused more closely than ever before on what happens when a bank or dealer fails. Regulatory policy needs to work backwards from that, since banks are regulated in order to reduce the costs of failure.

That would replace what to my mind is the fuzzy distinction between what are termed “Common equity tier 1”, “Additional tier 1” and “Tier 2” capital – not all of which is capital in the ordinary sense of the term that it can absorb losses outside of liquidation.2 The other element of this policy – which, again, the FSB will be addressing – is where in a group GCLAC should be issued from, ie whether from the group holding company, from intermediate regional or national holding companies, or from operating banks and dealers. This turns on the type of resolution strategy most appropriate for a particular group; ie topdown or Single Point of Entry (SPE) where a whole-group resolution is executed from the topco, or Multiple Point of Entry (MPE) where a group is split into parts which, as necessary, are resolved separately. Of course, it is in operating companies – banks and dealers – that life-threatening losses are generated. Where those losses exceed the equity base of an operating subsidiary, they need either to be absorbed by debt issued into the external market or to be passed up the group structure via intra-group debt or guarantees. The first – GCLAC, ie term debt, issued to the market – is associated with Multiple-Point-of-Entry resolutions.
In line with its clear mandate, enshrined in the Treaty establishing the European Communities, and for sound economic reasons, the ECB has to decide which monetary policy best serves the maintenance of price stability over the medium term and then act accordingly. At the same time, the Treaty also emphasises the need for sound fiscal policies. This clear separation of responsibilities is both efficient and transparent. Obviously, monetary policy alone cannot solve Europe’s economic problems such as the present intolerably high level of unemployment. Appropriate structural reforms implemented by national governments are of the utmost importance and much progress is required in this broad area. Moderate wage settlements in both the public and private sectors would, of course, contribute to reducing the high level of unemployment in many parts of the euro area. In this context, let me remark that recent wage agreements in some parts of the euro area do not appear to be in line with the need to encourage higher employment. The Eurosystem’s monetary policy strategy With regard to the Eurosystem’s monetary policy strategy, I should like to emphasise that the euro area monetary policy is a single one and therefore indivisible – by definition. Monetary policy decisions must be based on area-wide rather than national considerations and hence on area-wide indicators. Monetary policy has to be transparent so as to stabilise public expectations of future price developments.

Unemployment has risen in all counties and among all occupational groups, except in primary industries. In Sør-Trøndelag unemployment was 3.7 per cent. Unemployment is highest in Oslo, Aust-Agder and Finnmark. It has increased most in Oslo and Akershus in the course of the past year. Even though unemployment in manufacturing has edged up in recent months, the increase in unemployment so far is primarily the result of restructuring and reduced activity in some service sectors. Unemployment has increased most in Eastern Norway, where there is a heavy concentration of these industries. The aviation industry is undergoing restructuring. The ICT industry has reduced activity considerably over the last year. In spite of the slight increase in unemployment, household borrowing has been high over a long period. Over the past year, growth in credit to households has stood at over 11 per cent. House prices remain high. Household financial saving (net lending) has dropped to almost zero in the past couple of years. Strong growth in household consumption will exert continued pressures on prices and wages. There are clear indications that household income is rising substantially. At the same time, the level of financial saving appears to be low. All in all, this suggests that growth in household demand for goods  BIS Review 65/2002  1  and services will remain high. There will probably be a shift in demand towards imported goods and services.
Encik Adnan Zaylani Mohamad Zahid: Welcoming remarks - Islamic Finance Rendezvous Series Welcoming remarks by Mr Encik Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Islamic Finance Rendezvous Series, Bayan Lepas, 14 January 2019. * * * It is a pleasure to be here this morning. On behalf of Bank Negara Malaysia, I would like to express our appreciation to the state government of Penang for hosting this inaugural Islamic Finance Rendezvous Series; and to the Chief Minister of Penang, YAB Tuan Chow Kon Yeow and YB Dato’ Haji Abdul Halim bin Haji Hussain for gracing this event. I would also like to welcome the businessmen and entrepreneurs joining us this morning. A recent survey we did revealed that almost 60% of SMEs were not aware of the availability of Islamic business financing facilities. Indeed, most SMEs adopted conventional financing. Some may still have the misconception that Islamic finance is only for Muslims. Today, we hope to dispel this and create more awareness about what Islamic finance is and has to offer. We have assembled a number of industry experts and leaders for this, and I would like to extend our thanks to the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), the Malaysian Takaful Association (MTA) and other partners for your support and commitment to organise this programme. Islamic finance has evolved from a niche market into the mainstream Allow me to give an overview of where we are in Islamic finance.

There is an exciting line-up of events, which includes a panel session that will feature CEOs of Islamic banks and takaful operators, as well as corporate customers who will 2/3  BIS central bankers' speeches  share their experiences. This will be followed by a knowledge sharing session; industry dialogues including a dialogue with Bank Negara Malaysia; and a business matching session. I invite everyone present today to actively participate in the programme and to explore what Islamic finance has to offer. Thank you. 3/3  BIS central bankers' speeches
William C Dudley: The national and regional economy Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York and Chairman of the Committee on the Global Financial System (CGFS), Pace University, New York City, 29 November 2012. *  *  *  Good morning, I am pleased to be at Pace University to address the university community of students, alumni, faculty and university supporters. It is always a pleasure to speak with academic audiences who I find to be particularly well-informed and attentive. I thank you for inviting me here today. In a timely note, I also want to commend Pace University for fielding an excellent Fed Challenge team this year. As many of you know, Pace won the Second District College Fed Challenge this year and has just returned with an honorable mention from competing in the nationals at the Board of Governors in Washington, D.C. Today, I want to talk a bit about the Fed – what we do and why we do it. Then I’ll provide some thoughts about the national and local economic outlook and monetary policy. In covering the region and the nation, I will discuss the terrible impact of Sandy on the region and the implications for the national economy.

The best way to do this is to craft a plan that starts small in terms of its near-term impact, then grows very substantially over time as the economy grows healthier. Of course this requires that the longer-term consolidation is truly credible. It is also important that any plan have broad bipartisan support so that that households and businesses understand that it will in fact be carried out. We saw in the summer of 2011 when the debt ceiling limit was in play that a failure to come to grips with our nation’s economic challenges and responsibilities can have a large effect on U.S. household and business confidence. We do not want to repeat this experience at the start of 2013. Moreover, what happens will influence how we are perceived abroad. When I meet with economic leaders across the globe they do not doubt the underlying strength and dynamism of the U.S. economy, or the entrepreneurialism and inventiveness of our people. Nor do they doubt that we have the resources and capability to overcome the challenges we face. But they do wonder whether our political system is capable of putting the national interest above partisan interests and making the tough choices needed to address these challenges. If a credible bipartisan agreement is reached, it will strengthen global confidence in the U.S. and underscore to the world that our country remains a great place to do business and invest in.
In its place, the health and education sectors have emerged as important sources of job opportunity and economic development potential. These sectors have provided stability to the region through the recession and recovery. The recent announcement of Governor Cuomo’s $ billion economic development pledge to the region is another positive development. This commitment represents a tremendous opportunity for the region to accelerate the economic transformation already underway. Therefore, it is important for the community to think strategically about how best to use these funds to leverage the region’s existing strengths. Buffalo’s colleges and universities deserve special attention within this strategy. Not only do these institutions produce highly skilled labor, they also promote innovation by creating new knowledge and inventions through academic research and development. It can be especially beneficial for local businesses to take advantage of both the knowledge created and the availability of research facilities at local colleges and universities. Partnerships between private industry and higher-education institutions are an important ingredient in this regard. Going forward, I believe these partnerships will become more important than ever – particularly for places like Buffalo that continue to undergo economic restructuring. Fortunately, the region has a strong higher education sector in place. Conclusion To sum up, the incoming data on the U.S. economy has been a bit more upbeat of late, suggesting that the recovery may be getting better established.

It is available on our website along with other data and information useful to policymakers, business people and the general public. We use our website to share what we learn about our diverse District, and you will find detailed information about the region at the site. I invite you to visit newyorkfed.org to explore our highly localized maps and information on small business, credit and housing conditions and even the latest job openings at the New York Fed. 2  BIS central bankers’ speeches  Finally, and crucially, in the aftermath of the financial crisis, we are working with our colleagues in Washington, D.C., and at other agencies to help put the nation’s financial system on a firmer footing. Our supervisors are working hard to ensure that our District’s banks are operating safely and soundly. Although much has been done, we are not finished and are determined to keep at it. I recognize fully that there can be no return to pre-crisis business as usual – whether on the part of the financial sector or on the part of regulators like ourselves. All in all, there is a lot to keep myself and my colleagues busy. National economic conditions Now I’d like to turn to the national and regional economy. The incoming data on the U.S. economy generally has been a bit more upbeat over the past few months, suggesting that the recovery may be finally establishing a somewhat firmer footing.