samchain/econo-pairs-v1 huggingface dataset:
Its supervision focuses on issues such as the financial strength of the whole firm, including the adequacy of its liquidity and the resolution plan for the firm (collaborating with the Special Resolution Unit and home authorities to develop such plans in colleges or Crisis Management Groups as applicable), taking into account the importance of the firm to the PRA’s objective.” “For UK branches of non-EEA firms where the PRA is satisfied that the home regulatory regime is equivalent, and where the PRA has assured itself over resolution plans and the home regulator’s supervisory approach, the PRA relies where possible on the home regulator’s prudential supervision. In these cases, the PRA focuses on collaboration with home regulators (including via supervisory colleges) and on resolution plans. In addition, the PRA takes a close interest in liquidity and ensures that there are senior individuals in the United Kingdom that are clearly responsible for management of both the UK operations and business booked in the United Kingdom. The PRA discusses and agrees with the home regulator the areas in which it will seek to rely on the home regulator’s supervision”. This Approach document concluded that the PRA would in due course publish a fuller statement on our approach to the supervision of overseas firms operating in the UK. To take that forward, over the summer the PRA Board, acting in its new statutory capacity considered our policy further.

We also have doubts about the existing deposit insurance system of full cover up to EUR 100,000 adopted at the start of the financial crisis. At the time, this measure certainly helped calm the public and prevent runs on banks. However, we feel that the time has come to consider a return to normal, to reintroduce the system where depositors are not fully covered, at least with respect to non-SIFI banks. I think the question that forms the title of this conference is very topical and relevant. We believe that the time has come to pause and try to discuss these issues seriously. BIS central bankers’ speeches  1  As to costs, supervisory authorities are also incurring high costs. On the European scale, we are recruiting hundreds of new employees to be able to meet the challenges of applying the new regulations. Mandatory impact assessments have been introduced, but these often sound like unconvincing or formal justifications for a result known in advance: “There will be costs, but the benefits will outweigh them in the long run”. As to complexity, we have plenty of evidence that the current sectoral approach to regulation does not make our life as supervisory authorities any easier. We are often creating three parallel but materially identical sets of basic requirements for banks, insurers and investment firms.
This was mainly attributed to the seasonal inflationary pressures associated with food prices during this time of the year, as well as pass-through effects of the exchange rate depreciation. Distinguished Media Practitioners, you will also be interested to note that the Bank of Zambia has been refining its monetary and supervisory tools. The Bank recorded a shift in its Monetary Policy Framework in 2012 from the strict use of monetary aggregates to short-term interest rates, to better anchor inflation expectations. To this effect, the Bank of Zambia introduced a Policy Rate in April 2012 to, among other things, enhance communication of monetary policy direction to the public and introduce transparency in the way commercial banks and other financial institutions price their products. Ladies and Gentlemen, owing to the general decline in the rate of inflation over time, interest rates are expected to decline. However, commercial banks’ average lending rate rose to 16.4% in December 2013 from 16.1% in December 2012 largely reflecting upward adjustment in the Bank of Zambia Policy Rate. The adjustment in the Policy Rate was aimed as containing inflationary pressures attributed to removal of fuel and maize subsidies during the year. In 2013, the average lending rate increased to 17.0% at end-March. As the cost of borrowing is a key factor in facilitating sustainable economic growth and enhanced financial inclusion, it is one of Bank of Zambia’s objectives to see commercial banks’ lending rates eventually trending down significantly.

However, the data, or the explanations may not count if they do not reach the public and do not influence their decisions. According to some estimates, by 2025, 463 exabytes of data will be created each day globally. This means huge generation of data that can blur the official statistical information making it difficult for people to read and understand it. Obviously, to bring statistics closer to the public we need to place further focus on aspects such as putting numbers in perspective so that they can be easily understood by the wider public, language simplification, that sometimes is not an easy task for experts that are used to statistical taxonomy, segmentation of the audience (communicate not only to financial analysts and journalist, but to the broader audience, although through different channels), as well as creation of relatable content that considers what matters to the public and at the same time is educational and entertaining4. Along those lines, the National Bank, recognizing the importance of communication, engages in quite an array of activities. At the end, I feel that it is appropriate to conclude my address with the motto of the European Statistics Day 2021 "Statistics, a vaccine to protect democracy and combat the virus of disinformation". 1 "Survey of National Statistical Offices (NSOs) during COVID-19", World Bank and the  United Nations Statistical Division (UNSD), brief, July 6 2020.
This is why there is an inflation target and why fiscal policy endeavours to have measurable surplus targets in public finances. It is thus important to have a measurable, quantitative target fulfilment not just for inflation but also for resource utilisation, and then in the form of unemployment. Monetary policy should not focus on financial stability as there are better instruments With regard to the view that monetary policy should also aim to limit growth in mortgage lending and more generally to maintain financial stability, I would like to state the following: The policy rate is a blunt, indirect and inappropriate means of influencing financial stability in Sweden and it has a direct effect on inflation and unemployment. As I said in the beginning, the objective of price stability and highest sustainable employment should not be neglected out of consideration for financial stability, except in extreme circumstances and then only for a limited time. This only includes such situations where there are clear indications of threats to financial stability and where there are no means to manage these threats without neglecting the objective of price stability and the highest sustainable employment. At the same time, there should be confidence that this type of temporary neglect will in the longer run lead to a better development of inflation and unemployment. This last condition is important.

With regard to real economic stability, it is not as simple as merely focusing on employment and unemployment. It is actually not clear which real-economy target variable should be used. The other kind of objection ultimately entails sustainable growth in mortgages and financial stability being separate objectives for monetary policy. One can then neglect the objective of price stability and highest sustainable employment for a while in an attempt to slow down mortgage growth, promote financial stability and maintain a higher interest rate, as it is assumed that low interest rates would build up unsustainable financial imbalances. Clear targets mean that monetary policy is less arbitrary and easier to assess In response to these objections I would like to state that several and unclear targets for monetary policy risks making it arbitrary and difficult to assess, which the work on formulating the Sveriges Riksbank Act aimed to counteract. Delegating monetary policy to an independent Riksbank requires that monetary policy has clear objectives. 7  6  See the discussion of the “normalising argument” in the minutes of the monetary policy meetings and Svensson (2011). 7  “In the opinion of the government, a delegation of monetary policy to an independent Riksbank cannot take place unless the objective of the activities is clear. An independent Riksbank must therefore be given a democratically-anchored objective for its activities. If no objective is formulated, there would be scope for an arbitrary conduct of monetary policy.
Developments in the financial markets in general and of the payment system in particular have, however, led to a reduction in the importance of banknotes and coins as a means of payment, i.e. money. An increasing proportion of payment flows takes place by transfers between accounts and the ability of the central bank to influence the quantity of money in the economy is largely only through its ability to affect the demand for money by the general public. The quantity of money required by the  BIS Review 40/2001  1  general public depends on its demand for transaction funds for the purchase of goods, services and financial assets, which in turn is affected by the interest rates encountered by the general public. For instance, lower interest rates increase demand for money when businesses' demand for capital goods and households' demand for consumption increases. Thus, demand for goods and services are both sensitive to interest rates and largely reflect one another. By controlling the interest rate, the central bank thus affects both the demand for goods, services and financial assets and the demand for money. Banknotes, coins and bank deposits can immediately be transformed into means of payment and are therefore often used to define the quantity of money. The banks can increase the quantity of money by, for instance, increasing lending or by purchasing securities from the general public since a large part is returned as liquid deposits.

Changes in the instrumental rate have an effect through the "exchange rate channel" partly by changes in the nominal exchange rate for the krona affecting the relative prices for net export. Higher interest rates should thereby strengthen the domestic currency and make domestic goods more expensive relative to other goods and vice versa. Higher interest rates thereby dampen export at the same time as import becomes cheaper and increases. Lower demand for domestic goods contributes to reducing the use of resources and subduing inflation. A stronger nominal exchange rate dampens consumer prices at the same time since part of consumption is directed towards imports when prices are dampened. However, lower import prices also increase the real purchasing power which per se contributes to increasing purchasing power. In economies with diversified industry an increase in the interest rate thus also leads via the exchange rate channel to lower inflation. The strength of the effect depends inter alia on income and price elasticities and on the composition and size of foreign trade. In certain cases the positive effect on incomes from stronger currency can even predominate and vice versa. Changes in the nominal exchange rate probably have less impact on import and export prices if the changes are not considered to be lasting. In a floating exchange rate regime, it is therefore probable that changes in the nominal exchange rate will not have such a great effect as in the case of a devaluation or revaluation in a fixed exchange rate regime.
The intermediate variable – the money supply – is known when decisions are made and provided it is closely correlated with the path of inflation one to two years ahead, monetary policy will be very transparent. However, basing monetary policy on a money supply target is not a simple matter. It is questionable whether a straightforward and stable relationship between the money supply and inflation also exists in the short and medium term. This is because the relationship has been disturbed by various factors. Financial innovations have contributed, for example, to changes in the pattern of household payments and investment. Moreover, a number of major factors still have to be forecast in order to arrive at what may be an appropriate target for the money supply. So in practice even a money supply strategy has to be based on forecasts of a number of variables and an assessment of, for example, the output gap. Moreover, when the strategy was used in a number of countries in the 1970s and ‘80s, it was not particularly successful. In the absence of a straightforward, stable relationship between the intermediate variable (the money supply) and the ultimate objective (price stability), a conflict may arise between them because the central bank has only one instrument, its interest rate. If the central bank chooses the minimise fluctuations in the money supply, a probable consequence – given that the relationship is not exact or stable – will be increased fluctuations in inflation and output.

It is conceivable that for various reasons monetary policy’s impact  BIS Review 24/2002  1  via market interest rates may have become quicker in recent years. Financial markets have become more responsive to expectations, many households have flexible mortgage rates and so on. There are, however, other factors at work in the opposite direction. One is that the exchange rate, which in a small open economy is a central component of the transmission mechanism, does not always respond to instrumental rate adjustments in the same way as before. Moreover, on account of the associated menu costs, in a low inflation regime it seems that firms adjust prices less frequently. Still, until further notice most things speak in favour of the established view that the greater part of monetary policy’s impact on inflation shows up after one to two years. That naturally does not rule out the possibility that a part of the effect materialises either sooner or later than this. From this it follows that basing monetary policy on current inflation can lead to problems because the economic situation that may have changed completely by the time the repo rate adjustment elicits its full effect. A rather abrupt change of course may then be needed to deal with the situation that then prevails. Perhaps a parallel can be drawn with piloting a car ferry among the islands en route from Stockholm to Finland.
Combined with low growth abroad and increased trade with low-cost countries such as China, this has led to a fall in import prices. The relatively high price increases of Norwegian products reflect high wage growth and a tight labour market. The krone exchange rate, measured against the trade-weighted index, has appreciated around 13 per cent in the last two years. However, the krone was exceptionally weak in mid-2000. The krone is 4-5 per cent stronger today than in the early 1990s, and about as strong as the previous high in early 1997. Thus, the recent strong showing of the krone is not without precedent. Changes in the oil price have time and again been an important factor behind exchange rate movements. Empirical evidence shows that the exchange rate is affected mainly by large fluctuations in the oil price. The krone tends to depreciate if the oil price is very low, as happened during the Russian crisis in 1998. On the other hand, the krone did not appreciate accordingly when the oil price surged from 1999 onwards. Hence, the relationship between the oil price and the exchange rate has not been evident for the last two years. Since late 2001, however, our currency may have been used as a hedge against the upside risk to the oil price, and this may have contributed to its appreciation. Another factor behind the appreciation of the krone is the current low risk premium in global currency markets (measured by a global risk index, GRI).

The existence of abundant natural resources can be a mixed blessing. Experience elsewhere suggests that the sudden occurrence of major income flows tends to undermine future production potential. In the long term, it is difficult to ensure an efficient distribution of wealth between and within generations without triggering rent-seeking behaviour among households and firms. In the short term, the volatility in income flows and in terms of trade poses a challenge for monetary and fiscal policy. The mixed blessing of national wealth is not a new problem. Vigilant observers were already aware of this in the 17th century. In modern economic language, the Moroccan ambassador to Spain pointed to the problem of deteriorating competitiveness 300 years ago (see Chart 2). The main long-term challenge to economic policy is how the returns on petroleum wealth can be phased into the economy without a deterioration of our future growth potential. Even with our substantial petroleum reserves, human capital is by far our most important resource. It accounts for over 80 per cent of Norway’s national wealth (present value of future labour). Income from oil and gas is transferred to financial assets through the government budget. These transfers are large in terms of GDP, but still minor compared with our human capital. Oil and gas reserves account for about 7 percent of national wealth today, whereas in 2030 these reserves will be reduced to only 1-2 per cent. To meet these challenges, the Norwegian Government Petroleum Fund was established on 22 June 1990.
By the response received, this initiative will inspire the many talents within the Malaysian research community to be more engaged to think and delve into greater research on Malaysian economic and development issues that have great importance to the country and the region that is expected to persist in our prevailing and future environment. With the official opening of the World Bank Group Knowledge and Research Hub, I believe the Hub is well-positioned to become a regional centre of excellence that promotes learning opportunities, thought leadership and innovation. Being located in Sasana Kijang, which in Sanskrit means a meeting place, it is hoped that the Hub would benefit from synergies with the institutional cluster of intellectual excellence that are also located right here in Sasana Kijang, including the Alliance for Financial Inclusion, the SEACEN Centre, and the Islamic Financial Services Board. On behalf of Bank Negara Malaysia, allow me to express our great optimism of this partnership in bringing knowledge, expertise and best practices to realise greater  BIS central bankers’ speeches  1  regional and international collaboration. Today, the winner of the Young Malaysian Researcher Prize 2016 will be announced. With this, let me conclude my remarks and invite Dr Axel Van Trotsenburg, to deliver his remarks. I also look forward to the address on 'Shared Prosperity' by Dr Kaushik Basu. 2  BIS central bankers’ speeches

So, it raises the “signal-to-noise” ratio, which reduces uncertainty faced by private agents and strengthens the pass-through from communication to market expectations. Second, transparency is a mechanism for democratic accountability, in a world of policy discretion and central bank independence. Transparency makes it easier to judge whether a central bank is committed to its announced policy, and acts as a check on possible temptations to base policy on short-run or political considerations. In short, communication demystifies and democratises monetary policy. The empirical literature finds that better information about central bank actions can lead markets to do the central bank’s work for it. Blinder et al. (2001) was an early study which found that the US bond market’s ability to forecast Fed actions improved from around 1996 onwards, a few years after the Fed started announcing policy changes and publishing minutes of its meetings. Relatively small changes in the Fed’s policy rate were amplified by complementary movements in the bond market, which helps to stabilise the 1/5  BIS central bankers' speeches  macroeconomy.
If the economy is exposed to disturbances that may lead to higher unemployment, inflation will normally decline and interest rates will be lowered. Flexible exchange rate In a small, open economy, the exchange rate is an important channel for monetary policy. The krone fluctuates. This is not surprising because other countries’ currencies also fluctuate. The krone exchange rate is the price of our currency measured in a foreign currency. Developments in other countries are just as important for the krone as developments in the Norwegian economy. Capital flows freely and flows can change rapidly. This can spill over to exchange rates and interest rates as well as output and employment. The chart shows the effective exchange rate for Norway and a number of other small countries with inflation targeting. Exchanges rate fluctuations are approximately the same for Norway, Sweden and Canada, whereas the krone exchange rate fluctuates less than the exchange rate for Australia and New Zealand. Therefore, the krone does not stand out as particularly unstable compared with other countries’ currencies. The forward exchange and options markets have expanded in recent years. A deeper market reduces transaction costs and it is easier to find counterparties. This has provided companies with greater scope for hedging against foreign exchange risk. The use of instruments that reduce the risks associated with a floating krone is also increasing in Norway. There is a cost involved for businesses in hedging against fluctuations in the krone.

During periods of political and economic unrest, investors may choose individual currencies as a safe haven - often the Swiss franc. In autumn 2002, the Norwegian krone was probably also perceived as a safe haven. In addition, oil prices rose as a result of the uncertainty associated with the war in Iraq. In autumn 2003, the krone showed a tendency to appreciate against the euro. This partly reflected lowered market expectations concerning an interest rate increase abroad and expectations that interest rates might rise earlier in Norway than in other countries. At the same time, the euro appreciated in relation to other currencies. Changes in the krone resulted in an unintended tightening of monetary policy. This trend was reversed in December owing to low inflation figures and a reduction in interest rates. The interest rate reduction was probably of considerable importance as it eliminated the excess return on NOK investments. The krone has appreciated again in the last couple of months. The appreciation of the krone, if it persists, may curb inflation one to two years ahead. Past experience shows that the krone is at times heavily influenced by developments in the interest rate differential between Norway and other countries. This is given weight in interest-rate setting. However, as mentioned, themes in foreign exchange markets shift, and Norges Bank does not have instruments to fine-tune the exchange rate. Normally, Norges Bank will not intervene in the foreign exchange market in order to influence the exchange rate.