samchain/econo-pairs-v1 huggingface dataset:
And, above all, it significantly improves individuals' perception of this relationship, which may lead to incentives systems and their impact on agents' decisions in the labour market working more appropriately, reducing individuals' uncertainty over future income. In my address I have referred to the projections of various organisations on the sustainability of the system and to the reforms being applied in other European countries, summarising the content of the Research Department document that I shall send you this week. But let me conclude by highlighting the importance of the work entrusted to this Committee, especially at this current juncture where, for other reasons, economic agents are under a cloud of uncertainty. The agreement reached in Toledo whereby pension sustainability may not be used as a political battering ram is an achievement of which you should all be proud. This agreement, moreover, does not mean you should not react to the problems that may emerge in the pension system as a result of future demographic changes. On the contrary, the agreement obliges us all to examine the problems and seek solutions. I am sure you will be able to convey to the general public that these problems can be resolved if the appropriate  4  BIS Review 51/2009  measures are taken and that, moreover, if they are taken without delay, they need not be traumatic.

The closer these cushions are to levels that reflect potential future exposure across a more adverse set of market conditions, the more resilient markets and institutions will be under conditions of stress, and the less likely the prospect that the behavior by institutions will amplify financial shocks. Stress testing and scenario analysis is an important part of the process of calibrating this relationship between risk and capital and margin. The test of a sufficiently strong process is not simply the realism of the process used to measure potential losses, but the impact that it has on the decisions made by the institution on the size and type of exposures relative to earnings, capital and collateral or margin and the terms on which it extends credit. Let me conclude by noting again that we are in a period of perceived strength in economic fundamentals in the United States and many countries around the world. This strength has helped to induce significant reductions in a range of market-based perceptions of risk. Much of this confidence may prove warranted and durable, but the extent to which it endures will depend in part on the degree to which those running the major financial institutions in the United States use the opportunity presented by this period of relatively high profitability to strengthen their capacity to withstand a less favorable overall macroeconomic and financial environment.
For example, the Committee’s call for better measures of potential future exposure may apply to the way such exposures are measured for capital purposes in the Accord. Other Regulatory Efforts Introduction One of the Basle Committee’s hopes is that its sound practice recommendations will be widely implemented by supervisors both here and overseas. Governor Meyer and Deputy Comptroller Brosnan will be discussing in detail the guidance issued by the Federal Reserve and the OCC. I should also note that the New York State Banking Department recently released a report on banks’ hedge fund activities that supports the observations and supervisory priorities set forth in the Basle Committee Report. In addition, international supervisory bodies and supervisors from countries outside the U.S. are in the process of acting on many of the proposals discussed here today. Actions Regarding Hedge Funds by International Groups and Individual Countries In February, IOSCO, the International Organization of Securities Commissions, established a task force on HLIs. I understand that IOSCO is focusing on securities firms’ dealing with hedge funds and the ways in which risk management and market transparency can be improved, which complements the Basle Committee’s work concerning banks. Because banks and securities firms are the primary counterparties of HLIs, it is crucial that there be a coordinated supervisory response at the international level among securities and bank regulators. At their meeting last month, the Group of Seven (G-7) countries issued a statement endorsing both the Basle Committee and IOSCO efforts.

Mr McDonough’s statement on the work done at international level by the Basle Committee on Banking Supervision on banks’ dealings with highly leveraged institutions Statement by the President of the Federal Reserve Bank of New York, William J McDonough, before the Subcommittee on Financial Institutions and Consumer Credit of the Committee on Banking and Financial Services, US House of Representatives, on 24 March 1999. Good morning Chairman Roukema and members of the Subcommittee. I appreciate the continued attention that you and your colleagues on the Subcommittee and on the Banking Committee as a whole have brought to bear on the complex and important issues under discussion today. The near-failure of Long-Term Capital Management last fall raised a number of issues regarding the activities of highly leveraged institutions. Since then, banking supervisors have been hard at work to assess where banks have been deficient in their dealings with hedge funds and other highly leveraged institutions, which I will refer to as “HLIs”. This work has resulted in the issuance of supervisory guidance, both internationally and in the United States, with the aim of improving banks’ policies and practices regarding HLIs. I am happy to be appearing before you with my colleague Governor Meyer – who I understand will concentrate on discussing the Federal Reserve’s policy guidance to banks regarding hedge funds – and Deputy Comptroller of the Currency Brosnan.
So banks increasingly looked to the Bank of England to help settle the mutual obligations, using Bank of England bank notes as the settlement asset. Later, clearing began to take place directly across accounts held at the Bank. The Bank’s Archive still holds copies of the ledgers recording the balances on those accounts – Figure 1 shows example pages from the late 1870s. 2 A lot has changed in the past 250 years. Pubs, thankfully, no longer form the hub of the clearing system! Paper – whether in the form of elegantly-scribed ledgers, or IOUs – is also almost wholly extinct in interbank clearing, with 98% of payments by value now made electronically, and only 2% using notes, coins and cheques. The pace of development of alternative methods of payment for households and companies has also accelerated dramatically, driven by new and innovative technology. It is hard to imagine what one of those Walk Clerks from the 1770s would make of the range of cashless, real-time, mobile payments options available in the shops, restaurants and stations in and around Lombard Street today. Yet, amidst all this change, some things remain the same. The Bank of England still lies at the heart of the sterling interbank payment system and banks still value the finality provided by settlement in risk-free central bank money. The role of the Bank of England as settlement agent originally arose from its unique ability to create sterling.

In so far as financial markets are concerned, these recent times have seen us avoid major and abrupt market movements or disruptions. Besides the 2016 measures that stabilised our markets, this growth is also the result of the many initiatives implemented since then. One key fundamental strategy has been our steps to enhance market transparency and visibility, which provides us with information and data for targeted development efforts. The operationalisation of the RENTAS Segregated Securities Account which enables us to observe the activity in the Malaysian bond market has also provided investors with improved efficiency and a reduced reporting burden, lowering the cost of investing in this area. On this topic, I am pleased to share that on Monday this week, Clearstream launched their revamped solution which will provide an internal settlement link to facilitate greater access to the Malaysian market. They now rejoin a host of International Central Securities Depositories and Global Custodians that provide such access. This is yet another positive development for our financial markets. With greater oversight capabilities, we were able to introduce the dynamic hedging programme in 2016, which successfully enabled institutional investors’ active management of their foreign 1/4  BIS central bankers' speeches  exchange exposures in the onshore market. The programme currently records participation of 104 registered institutional investors managing USD37 billion total asset under management, and has led to the migration of these investors’ former offshore strategies to the onshore market which has increased the level of transparency and orderliness of the ringgit market.
This assurance is accentuated in many studies of the enlargement and said to be the most important individual factor for continued strong growth in the 1 eastern European countries. It is also at the point of actual membership that the final trade barriers will be abolished and the investment channels will be fully opened. We can make a comparison with the countries that entered the EU earlier with income levels way below the average, i.e. Spain, Portugal and Ireland. For these countries membership meant a large inflow of capital and technology as well as a further increase in trade. The economic policy of the new member countries became more stable. Rapid growth and a convergence in the standard of living followed. This led to major gains for both the richer, existing member countries and for the newcomers. It would therefore be regrettable if the candidate countries' membership were allowed to delay or be diluted. Fortunately, there is now a clearer timetable and a strong probability that 8 of the 10 countries will become members in the coming years. However, after the enormous efforts made by the candidate countries in recent years, their actual membership must not be blocked by internal power games and ultimatums between the existing EU members. However, the attempts in recent years to create transition periods before candidate countries can enjoy the EU's free mobility for labour are worrying.

Eva Srejber: A reunited Europe – the roles played by Sweden and the Riksbank Speech by Ms Eva Srejber, Second Deputy Governor of Sveriges Riksbank, to the Baltik Financial Network, Stockholm, 13 February 2002. *  *  *  Thank you for inviting me here to speak of and discuss this important subject with such a knowledgeable public. The enlargement will change Europe and Sweden and will also affect the Riksbank. For those of us in western Europe, this is an important opportunity to regain the right geographical, economic and historical perspectives. We talk about "eastern Europe", despite the fact that Prague and Ljubljana lie west of Stockholm, we forget that Riga and Tallinn are actually closer to Stockholm than Gothenburg. We often still have a mental curtain where the iron curtain once prevailed. Now this division will soon be at an end. A hundred million Europeans, who lived under a totalitarian Communist dictatorship for half a century, can now finally return to a single European community. The political dimension is undoubtedly the most important. The new community confirms democracy and thereby guarantees peace and stability throughout Europe, which will in turn provide a good foundation for growth and development. Today I intend to say a few words about an important facet of the EU enlargement, namely the economic consequences, which will affect the work of the Riksbank more directly.
Myopia risks coming at the expense of higher inflation tomorrow. It imparts an inflation bias. 49 What is true of monetary policy is equally true of regulatory policy. A desire to bring forward income may result in regulatory policy also becoming too loose. As one former British Prime Minster put it, pre-crisis regulation was “hugely inhibiting of efficient business by perfectly reasonable companies”. 50 Myopia then risks coming at the expense of a higher incidence of crises tomorrow. It imparts a crisis bias. 51 Luckily, these temporal biases also have a potentially straightforward solution. This is to delegate decision-making over monetary and regulatory policy to an agency less prone to myopia bias – an agent whose time horizon stretches beyond the political business cycle. This is where central bank independence comes into the picture. The inflationary experience of the 1970s and early 1980s was taken by many as evidence of myopia-induced inflation biases. Politicians had flunked the marshmallow test. In response,  48  The Bank of England GfK / NOP FPC Survey. Further details available at: http://www.bankofengland. co.uk/publications/Documents/speeches/2013/fpcsurvey.xlsx. 49  Barro and Gordon (1983). 50  Blair (2005). 51  Haldane (2013). 8  BIS central bankers’ speeches  countries began granting central banks greater degrees of monetary policy independence, as an institutional response to a behavioural bias. 52 This international trend was followed by the UK in 1997, when the Bank of England was granted operational independence. Has this curbed the inflation bias?

Andrew G Haldane: Central bank psychology Speech by Mr Andrew G Haldane, Executive Director and Chief Economist of the Bank of England, at the “Leadership: stress and hubris conference”, hosted by the Royal Society of Medicine, London, 17 November 2014. *  *  *  The views are not necessarily those of the Bank of England or the Monetary Policy Committee. I would like in particular to thank Rashmi Harimohan, Jeremy Franklin, Michael McMahon and Nick Mclaren for assistance in preparing the text. I would also like to thank John Barrdear, Rob Elder, Bob Gilhooly, Chris Hackworth, Jeremy Harrison and Gareth Ramsay for their comments and contributions. 13 September 2007 will be seen as a red letter day in financial history. It was the date news broke of Northern Rock seeking emergency liquidity from the Bank of England, prompting the first run on a UK bank in over a century. It also fired the starting gun on what subsequently became known as “The Great Recession”. That very day, the Bank hosted a conference. In a painful irony, its theme was “The Great Moderation”. The Great Moderation described the long-period of pre-crisis macro-economic calm, with stable growth, stable inflation and stable banks. 1 This view held that central banks, while not eliminating boom and bust, had moderated macro-economic undulations. It also held that financial innovation, while not eliminating risk, had scattered it to the four winds. As Great Recession abruptly replaced Great Moderation, it was clear a grave analytical and policy error had been made.
The bringing together of financial institutions and market players across continents to participate in this expansion of inter-regional investment flows has fostered financial linkages among the major regions. This will not only provide great synergies and opportunities but will contribute towards facilitating international financial stability. Just as the old Silk Road in the 14th century offered a route that facilitated the spice trade from the East to the West, we can now envisage the new Silk Road which financial flows across borders between the East and West, thereby promoting international financial integration. In this context, the Islamic capital market, in particular, the sukuk market has a major role in strengthening this interlinkage. The essence of the New Silk Road is to provide a route for such flows and promote greater financial integration for the benefit of a wider community. The New Silk Road should not be envisaged as just a link between Asia and the Middle East but that which extend to Europe and the rest of the world. Indeed, we are already seeing the participation of global investors and the international financial community. The participation of a financial centre like London will foster the global growth and international integration of this market. The involvement of regulators and government agencies is also contributing to accelerating this process. Malaysia is one of the key intermediary destinations along this New Silk Road that offers a platform for the origination, distribution and trading of Islamic capital market and treasury instruments, including sukuks.

The latest numbers for wage growth, in 2020 and  2020  1 0 3  2021, have been adjusted for the various distortions affecting the official data, and are below the headline figure. But this year’s number is still  4  5  6 7 8 Unemployment, per cent  Regular-pay average weekly earnings (AWE) in the private sector. The chart uses a Bank staff estimate of underlying AWE that strips out Covid-related compositional effects. Sources: ONS, Bank of England, and Bank calculations. noticeably higher than would normally be the case at the current rate of unemployment. (And arguably, if you think that some of those on furlough have actually been looking for other jobs while on the scheme, and therefore helping to depress wage growth to some degree, perhaps a better estimate would have both the red dots somewhat to the right, making the latest figure for wage growth look that much stronger, compared with the pre-pandemic relationship8.) However long it lasts, and whatever the long-run equilibrium rate of unemployment, there looks to have been rise in the shorter-term equilibrium (the so-called “NAIRU”). Conclusion This is an extremely challenging period for monetary policy. Despite relatively weak growth over the past two years as a whole, domestically and globally, inflation has risen very significantly. In this country it was over 4% in October.
In maintaining the soundness of the financial system in Singapore, MAS’ approach is centred on establishing sensible rules appropriate to our circumstances, strengthening prudential and market conduct supervision, and working in partnership with the industry to develop a shared ownership of supervisory outcomes. 9. This approach has served us well. As global reforms reshape the financial landscape, we will continue to strengthen our supervisory and regulatory regimes and market infrastructure, consistent with new international standards and best practices. As we have done in the past, we will calibrate these changes to take into account our environment and regulatory objectives. 10. MAS is supportive of global reform efforts to strengthen capital and liquidity frameworks. We have always considered capital adequacy and effectiveness of a bank’s risk management and capital planning processes as important parts of overall prudential management of banks. As a member of the Basel Committee on Banking Supervision, we participated actively in international discussions that helped shape the broad agreement reached earlier this week on the main design elements of the new capital and liquidity reform package. Other design details such as calibration, and phase-in arrangements as well as the framework for regulatory buffers will be determined later in the year. We would like to see a set of final proposals that can be implemented globally in a meaningful manner to promote the long term stability of the banking system.

In part, domestic wage growth and other business costs could be temporarily tempered by the initial cyclical productivity uptick in some capital intensive sectors of the economy. For the year as a whole, headline CPI inflation is projected to average between 2.5% and 3.5%. MAS underlying inflation, which excludes the cost of accommodation and private road transport, will come in at around 2%. BIS Review 103/2010  1  6. When Singapore entered the recession in 2008, monetary policy, followed by fiscal policy, was eased to provide support to the domestic economy. As economic activity recovered swiftly in 2009, macroeconomic policy settings were recalibrated to levels which were conducive to sustainable growth and medium-term price stability. In a pre-emptive move, MAS tightened monetary policy in April 2010 by re-centring the $ policy band upwards and restoring its modest and gradual appreciation path. 7. Looking ahead, the outlook of the industrialised economies remains uncertain. However, there is sufficient momentum from the Asian economies and domestic industries that will continue to support Singapore’s economic activity at a high level for the rest of the year. While CPI inflation is expected to pick up towards the latter part of the year, it has evolved broadly as anticipated during the April review. At this stage, we assess that the current monetary policy stance of a modest and gradual appreciation of the $ policy band remains appropriate. Strengthening the financial system 8. Singapore’s financial system remained resilient during the global crisis.
Hence, effective and sustainable longterm policy measures have to be implemented for accessing foreign markets through exploiting trade and investment opportunities. We also observe that frequent natural calamities hamper economic activity resulting in a moderation of economic expansion. This highlights the need for diversification of growth drivers in the economy as well as putting the necessary measures in place to strengthen the economy’s resilience through mainstreaming sustainability into the planning and budgeting processes and improving disaster preparedness. In the global context, after having a series of economic distortions and negative shocks after the Global Financial Crisis, now the global economy is gradually recovering. Investment conditions have improved and global trade also rebounded in 2017. So, we need to exploit opportunities created by the revival of global growth supported by synchronized economic expansion in Europe, Japan and the US for the first time since the Global Financial Crisis. Better prospects in Europe and the US, which are our two largest markets, are clearly tailwinds. This is growth positive for Sri Lanka. However, we should also be mindful that gradual normalisation of monetary policies in the advanced countries could pose some challenges to the economy on both external and fiscal fronts. Sri Lanka is gradually transforming to upper middle income economy status. Sustained progress will inevitably involve greater integration with the world economy. While creating opportunities, this will also expose the economy to greater uncertainties and risks.

It would be dangerous to financial stability if we gave so large a capital carrot to banks to use the internal ratings based approach that many of the world's most important financial institutions, which account for the vast bulk of global and G10 domestic banking activity, saw a significant reduction of their regulatory capital requirement. It is the need to balance incentives with the maintenance of overall capital levels which makes this issue a difficult one. This, along with a large number of other questions about the impact of the proposals, will be further examined by the Committee in the course of a quantitative impact study to be carried out before finalising the proposals. The Bank of England has been asked to co-ordinate this work calibrating the impact of the new Accord on individual institutions and on the system as a whole. I recognise that the time allowed for this exercise is short, but I hope very much that we can count on the contribution and co-operation of the banking community. 2  BIS Review 29/2001  Turning to the second possible consequence of maintaining a risk insensitive alternative approach, we may find that the combination of having some banks on the IRB approach and some on the standard approach will, perversely, introduce a financial stability risk that is not present with all banks on the standard approach. This is that the more sophisticated institutions would have to hold more regulatory capital against weak loans than banks that remain on the standard approach.