samchain/econo-pairs-v1 huggingface dataset:
In general, central banks do not have targets either for house prices or household debt. A rapid surge in house prices or rising lending may, however, signal an imminent financial crisis which could affect future inflation and resource utilisation. Hence, under certain circumstances, also taking account of house prices and household indebtedness in monetary policy decisions is necessary. The extent to which this should be done is, of course, a matter of judgement affected by several factors. For instance, it depends on the other variables currently being taken into account, and the shocks expected ahead. The housing market is also an important part of the monetary policy transmission mechanism. The house prices thus also contribute important information about which shocks are driving the economic development. On the whole, I do not believe that the flexible inflation target policy conducted by the Riksbank since the mid-1990s, with price stability as the overriding target, needs changing. However, monetary policy must to a greater extent lean against the wind and take greater account of financial stability. Macroprudential policy provides financial stability policy with a new focus The emergence of macroprudential policy as a new policy area involves a far-reaching change in the preventive work of financial stability policy.3 Macroprudential policy is about limiting systemic risks from a systemic perspective. It is about analysing the links between the various agents in the financial system and the relationship over time between the financial system and the macro economy.

A typical example is a financial crisis situation in which a macroprudential policy authority wishes to reduce the capital buffers of banks in order to stimulate lending while, from a microprudential perspective, it would instead be desirable to see the banks strengthening their balance sheets with more equity. So, there is a need to coordinate these policy areas too. Also, the knowledge about individual institutions generated in microprudential supervision work is important to understanding risk build-up at systemic level. Wind strength is also affected by other policy areas Not only is there a strong link between monetary and macroprudential policy and a need to coordinate macroprudential and microprudential supervision – the need to lean against the wind is also affected by other policy areas. Fiscal policy has a significant influence on borrowing and lending incentives. However, other policy areas can also come into play, such as housing policy when it comes to household indebtedness. There is thus a limit to what can be achieved by macroprudential policy, or monetary policy for that matter, which depends on other policy areas. The opportunities and limitations of macroprudential policy – the example of the Swedish household sector I will now be much more specific about the opportunities and limitations of macroprudential policy by focusing on a concrete example. By now, it is well known that, for a number of years, the Riksbank has seen substantial risks associated with household indebtedness.
The function of money as a unit of measurement was also undermined. An example of this is described in the local history books for the coastal districts of Karlsøy and Helgøy in Troms, northern Norway. At that time, accounts were sometimes kept in silver, or in goods such as cod liver oil, large saithe or flour. 8 Inflation also resulted in the transfer of assets from creditors to debtors: the real value of the fishermen’s debt to merchants in Bergen decreased. This marked a historic shift. The fishermen were of course happy to see their debt diminish. Creditors, however, lost money, which probably did not increase confidence and a willingness to lend the next time someone needed a loan. 6  Davies, Glyn (2002): A History of Money from Ancient Times to the Present Day, University of Wales Press, page 200. 7  Bordo, Michael D. and Eugene N. White (1990): “British and French Finance during the Napoleonic Wars”, NBER Working Paper No. 3517, also published in Bordo, Michael and Forrest Capie (Eds.) Monetary Regimes in Transition, Cambridge University Press, 1993. 8  Bratrein, Håvard Dahl (1989-1994): http://karlsoy.com/bygdebok/. BIS Review 136/2008  Karlsøy  og  Helgøy  bygdebok,  Karlsøy  kommune,  3  3. The promise of a stable value of money against gold and silver  I have given examples of how easily monarchs succumbed to the temptation of an apparently free lunch by exploiting opportunities for raising seignorage revenues. In times of political instability, they sometimes had no choice.

BIS Review 136/2008  9  higher inflation without lower unemployment in the long term. Credibility hinges on the active use of the interest rate to attain the target. The lawyer and economist Michael Woodford has pointed out that in order to keep your word it is not enough to make a promise today and keep your word tomorrow. 37 When making interest rate forecasts, we must also take into consideration the promises made yesterday. Only then can we fully use expectations to stabilise the economy optimally. This is referred to as monetary policy from a timeless perspective. 38 My understanding is that a person will likewise both look backward and forward when interpreting the laws of a society. It is Norwegian court practice for judges to consider precedent effects and case law when interpreting legislation. Today there is general consensus that price stability is not only the best contribution that monetary policy can make to economic stability over time, but perhaps also the only promise the central bank can actually deliver. 6. Today’s financial crisis  These days the world is in the throes of a severe financial crisis – the deepest crisis since the 1930s. Many foreign banks have suffered large losses and a sense of fear is prevailing. We are entering a global economic recession. The authorities are taking action to restore confidence in the financial industry. Macroeconomic policy measures are aimed at limiting the crisis-related effects on the real economy.
Successful organizations depend on "open doors" to maintain transparency and build trust. But what will "open doors" mean to people in future digital work environments? How will the culture of a workplace change if we don't see each other face-to-face as often? In particular, how will we effectively train and mentor junior employees? Finally, current events demand that we be honest about the times we have not lived up to our own standards of equal justice under law and equal opportunity in our economy. Each of us needs to question our role in allowing systemic racism to persist. Our colleagues, stakeholders, and the public in general will ask how we will do better in the near term and the long term—and then they will hold us to it. Thank you for your kind attention, and thank you again to the Union of Arab Banks for hosting this discussion. 1 Lisa Kraidin, Thomas M. Noone, Sean O'Malley, and summer intern Gabe Rosen contributed to the preparation of these remarks. 2 Board of Governors, "Federal Reserve announces extensive new measures to support the economy," Press release (Mar. 23, 2020). 3 Federal Open Market Committee Statement (Mar. 15, 2020). 4 See supra n.2. See also Nicola Cetorelli, Linda S. Goldberg, and Fabiola Ravazzolo, "How Fed Swap Lines Supported U.S. Corporate Credit Market amid COVID-19 Strains,"  Liberty Street Economics (June 12, 2020). 5 "Agencies encourage financial institutions to meet financial needs of customers and members affected by coronavirus," Joint press release (Mar. 9, 2020).

Being wholly-owned, the incorporation of the Islamic subsidiary will provide an opportunity to the group to enlarge the Islamic banking market to potential institutional investors, both domestic and foreign, who wish to participate in the Islamic financial activities through direct equity participation. The divestment of shares in the Islamic subsidiary allowable up to 49%, is subject to the condition that the Islamic subsidiary will remain as a subsidiary of the commercial bank. This option will provide the banking group with the opportunities to find a strategic partner for the Islamic subsidiary, thus diversifying the range of players available in the Islamic financial market. Indeed, foreign participation in the Islamic subsidiary would enable the group to tap on the regional and international business opportunities. In going forward, the move to issue new licences and accord legal status to the existing Islamic banking operations of the conventional banks is expected to accelerate the positioning of Malaysia as an attractive Islamic financial hub to the international financial community. In this regard, the Islamic financial players of other banking groups that have achieved the critical mass and strength are encouraged to explore the strategic advantage of the incorporation of an Islamic subsidiary, and in elevating the industry to a more dynamic and advanced phase of development including ventures abroad. There is a large business potential to be tapped in an environment of strong and rapid economic and financial development in the country and the region.
For some economies that were more affected by the recent financial market turmoil, they have also taken credible policies to address domestic imbalances and have been successful in restoring investors’ confidence so far. Nevertheless, we cannot afford to be complacent as what we had experienced in the past year was probably a prelude to, rather than the end of, a period of heightened market volatility. The sentiment of global financial markets has turned more sanguine recently amid expectation of prolonged low interest rates in the US. However, the pace of monetary normalisation in the US is very much uncertain and data dependent. With a large part of the cumulated capital inflows to Asia since 2009 still in the region, it is possible that regional economies with domestic vulnerabilities built up during the period of ultra-loose global monetary conditions could experience sharp corrections when capital flows ultimately reverse. It is therefore imperative that regional economies should make use of the current breathing space to put their own house in order, take credible measures to reduce macroeconomic and financial imbalances, step up surveillance and ready contingency plans and liquidity backstops such as the use of foreign reserves and bilateral/multilateral swap lines to mitigate systemic risk in the financial systems when the need arises. A sharp reversal of capital flows could deal a severe blow to low-income countries, as reduced private capital, exports and remittance could have a disproportionally large impact on their less diversified economic structure.

Constant 2000 prices 1200  1200  1000  1000 Trend Actual  800  800  600  600 1980  1984  1988  1992  1996  2000 2003  Sources: Statistics Norway and Norges Bank  Monetary policy credibility Expectations play an important role in price and wage formation. Expectations concerning inflation and economic stability are of crucial importance for the foreign exchange market. Inflation expectations also influence wage demands and pricing in the business sector. With confidence in monetary policy, expected inflation in the long term will be close to the inflation target. This alone contributes to stabilising inflation. Surveys indicate that enterprises, the social partners and other economic agents expect inflation to be 2½ per cent over time. Financial market participants also expect that inflation will be 2½ per cent ahead, as implied by long-term bond yields. A flexible exchange rate The krone 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. A structural feature of open economies like the Norwegian economy - with a national currency - is that the exchange rate fluctuates.
Jean-Pierre Roth: Recent financial and economic developments in Switzerland Introductory remarks by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank, at the half-yearly media news conference, Berne, 13 June 2003. *  *  *  The National Bank has decided to leave the target range for the three-month Libor rate unchanged at 0.0%-0.75%. For the time being, the three-month Libor is to be kept at the lower end of the target range at 0.25%. In the past two years we took decisive steps in response to declining economic growth and to the upward trend of the Swiss franc. Owing to the low inflationary pressure we have narrowed the target corridor for the three-month Libor by a total of 3.25 percentage points since March 2001. Interest rates were last lowered on 6 March of this year. The recovery of the global economy is likely to be delayed still further so that in Switzerland, too, any perceptible economic upswing can only be expected to materialise during the course of 2004. We are therefore maintaining our expansionary monetary policy and shall keep the attractiveness of Swiss franc investments low. This does not jeopardise price stability. Assuming that the three-month Libor rate will remain stable at 0.25%, average annual inflation is expected to amount to 0.6% this year, 0.4% next year, and 1.2% in 2005. For 2003 we anticipate real economic activity to stagnate overall. Let me continue by saying a few words about the financial markets.

Furthermore, the euro area also has the problem that there is a large spread in inflation between the peripheral countries and the countries at the centre. In striving for an inflation rate of less than, but close to, 2% in the medium term in the entire euro area, the ECB is trying to prevent inflation in the central countries from being pushed down towards zero, or even below zero, for any length of time. In Switzerland, this problem does not exist as only inflation measured in Switzerland is relevant for our monetary policy. BIS Review 27/2003  3  Additional agreement between the Federal Department of Finance and the SNB on the distribution of profits on the free assets At yesterday’s meeting the Bank Council of the National Bank agreed to an additional agreement between the Federal Department of Finance and the Swiss National Bank on the distribution of profits on the free assets (income on reinvested proceeds from gold sales). The profit distribution of the National Bank will thus increase by Sfr 300 million to a total of Sfr 2.8 billion (for the financial year 2003) in spring 2004. In 2005 and 2006, it will be gradually raised up to Sfr 3 billion. The National Bank’s profit distribution has so far not taken account of this income on reinvested gold proceeds.
Of course, Queens is special not just for its central location, but also for its extraordinary diversity. Queens continues to serve as a land of opportunity for immigrants from all over the world. Roughly 46 percent of Queens’ population is foreign born – more than four times the national average and higher than any other county in the country with the exception of Miami-Dade. Sizable communities of immigrants from countries ranging from Columbia to Korea, Ecuador to Egypt, Greece to Guyana, and Italy to India have made Queens their home. This morning I will talk to you about national and regional economic conditions. As always, what I have to say reflects my own views and not necessarily those of the Federal Open Market Committee (FOMC) or the Federal Reserve System. Introduction to the New York Fed By way of introduction, let me start with a synopsis of what the New York Fed is, what we do and what makes my job so interesting. The New York Fed is part of the Federal Reserve System, America’s central bank, and was created by Congress in 1913. With this act, Congress delegated to the Fed System its constitutional authority to manage the supply of money in the nation’s economy. Congress designed the central bank to be decentralized, representative of all regions of the country and independent of the political process.

On the monetary policy side, we at the Fed have maintained unusually low levels of short-term interest rates and engaged in large-scale asset purchases. These measures have fostered a sharp improvement in financial market conditions. On the fiscal side (that is, government spending and taxes), the economy has been supported by the shift in policy to help support growth. In particular, the temporary reduction in payroll taxes could have a particularly strong impact on growth during the first part of the year. Third, growth abroad – especially among emerging market economies – has been strong and this has led to an increase in the demand for U.S.-made goods and services. Over the four quarters of 2010. real exports rose 9.2 percent. After a disappointing performance earlier in the year, U.S. net exports surged in the fourth quarter. The firming in economic activity, in short, is due both to natural healing and past and present policy support. In this regard, it is important to emphasize that we at the Federal Reserve have been expecting the economy to strengthen. We provided additional monetary policy stimulus via the asset purchase program to help ensure that the recovery regained momentum. A  BIS central bankers’ speeches  3  stronger recovery with more rapid progress toward our dual mandate objectives is what we have been seeking. This is welcome and not a reason to reverse course. Yet, we must not be overly optimistic about the growth outlook.
The Federal Reserve tapered its asset purchases and was expected to raise its policy rate in the second half of 2015. The ECB, on the other hand, cut its policy rate and announced a support package to make it easier for small and medium-sized enterprises to get bank loans. The ECB also decided on substantial asset purchases in order to make monetary policy more expansionary at the start of 2015. There was thus a risk that the krona would become too strong against the euro. In a situation in which inflation was below target and inflation expectations were falling, it was particularly important to avoid a rapid  13 [23]  appreciation of the krona. The policy rate was therefore cut to below zero per cent and purchases of government bonds were initiated. The trilemma may be a dilemma The limits of monetary policy are often discussed on the basis of the so-called economic trilemma, which is to say the difficulty of uniting an independent monetary policy and free capital movements with a stable exchange rate. 14 The problem is that all of this, according to the trilemma, cannot be attained simultaneously. If a central bank wishes to conduct its own monetary policy, which is to say to set domestic interest rates independent of foreign ones, and, at the same time, have a stable exchange rate, capital movements must be regulated, otherwise the domestic interest rate cannot deviate from the international one without there being major fluctuations in the exchange rate.

2 [23]  A persistent low interest rate environment also risks leading to the continued rise of indebtedness among mortgage borrowers, making them more sensitive to interest rate changes. This means that they could be affected more than others when the policy rate needs to be raised. This would be unfortunate as monetary policy probably works best when it affects the entire economy in a similar way. Furthermore, low interest rates for a long time entail increased risks to the financial system and financial stability. And, as a stable financi al system is a prerequisite for successful monetary policy and financial policy, monetary policy in our present situation needs to be supplemented by, among other things, a wellfunctioning macroprudential policy. An important question in this context is what formal role the Riksbank should have in the work to reduce risks and vulnerabilities in the financial system. The Riksbank’s responsibility for financial stability is expressed in the legislation as the task of “promoting a safe and efficient payment system”. More specific details are not given. In my opinion, the Riksbank’s responsibility – in common with a number of other central banks – should include financial stability and this should be clarified in the Sveriges Riksbank Act. I hope that this is dealt with at the committee stage of the review of the monetary policy framework and the Sveriges Riksbank Act.
Reflecting changes in the structure of the financial system, we have included questions on demand for  30  “The transmission mechanism of monetary policy”, a paper by the Monetary Policy Committee, April 1999. 31  “The Bank of England’s submission regarding the economic context”, memorandum submitted in evidence to the Treasury Select Committee inquiry on “The Monetary Policy Committee of the Bank of England: Ten years On”, April 2007. 32  See Goodhart, C. A. E., 2007, “Whatever Became of the Monetary Aggregates?”, Peston Lecture at Queen Mary College, London, and King M. A. K., 2007, “The MPC ten years on”, lecture to the Society of Business Economists, May. 33  See Tucker, P. M. W., 2006, “Macro, asset price and financial system uncertainties”, Roy Bridge Memorial Lecture to the ACI – The Financial Markets Association, Bank of England Quarterly Bulletin, Spring 2007, page 127 for discussion on growth in financial sector money holdings, and page 129 for discussion of the composition of balance sheets of large banks. 8  BIS Review 66/2007  credit from hedge funds and structured finance vehicles, as well as on the terms and conditions on bank lending to households and firms. Second, we need to be careful in distinguishing the implications of credit conditions and asset prices from any extra role played by the rate of growth in banking sector liabilities (broad money).

Not only in terms of the substance but also in terms of building and maintaining support for the regime, the UK has been much better served by an objective expressed in terms of a target for inflation. It is easier to explain. But that leaves open the question of what role money should play in our analysis. Some commentators want money to be important in the transmission mechanism because, after all, inflation is a monetary phenomenon; others feel that it can be placed to one side on the grounds that it is essentially endogenous and, after all, the dual of the quantity of money – interest rates – is in our models (more or less). This is an area where, given our individualistic governance structure, views on the Committee cannot be expected to be monolithic. My own view is that it is useful to recover the concept of shifts in the supply of broad money. 32 But such shifts do not have much in common with the proverbial helicopter drop; households and firms are not forced to hold the extra money, but respond to the terms and conditions on deposits offered by banks. The consequences for the macroeconomic outlook therefore depend on the nature of the underlying shock. For example, if a shock – say to the monetary regime – caused perceptions of macroeconomic risk to decline, there could plausibly be shifts in both the supply of and demand for credit.