samchain/econo-pairs-v1 huggingface dataset:
To counteract this, there is discussion of alternatives such as using stress tests to a greater extent, making dynamic reservations and reducing the possibility to utilise an overly rapid increase in the value of an asset as collateral for a loan. The connections between a central bank's two objectives are thus many and complex. There is a pressing need to increase our knowledge of these mechanisms. Interest in financial stability has also increased in recent years. The Riksbank has published regular reports on the financial stability of the banking system for several years now. Many have followed our example, which shows that a large number of us realise the importance of maintaining stability in the financial system. Other economic policy implications In most of the financial crises that have occurred, the shaping of economic policy has played an important role both for the build-up of financial imbalances prior to the crisis and in triggering the crisis. The bank crisis in Sweden at the beginning of the 1990s can be seen as an example. It was preceded by deregulation of the financial markets, a tax system that favoured borrowers, an overly expansionary fiscal policy given the fixed exchange rate regime, and a monetary policy that could not be utilised to reduce overheating, credit booms or the rise in property prices. At the same time, the banks were unused to managing credit risk and the supervisory authorities were not prepared for operating on deregulated financial markets.

Regulatory and supervisory authorities should strengthen prudential and other financial market regulations in order to deepen financial markets and improve investment climate, whereas central banks should focus more on greater currency flexibility and price stability. In conclusion, as a central banker, I would like to highlight three key messages from the thoughts I have shared with you. First, to achieve price stability, central banks need to ensure efficiency of financial infrastructure and maintain smooth operation of financial services. An efficient and effective payment and settlement system is at the core of financial infrastructure. Second, removing market imperfections is essential for the smooth operation of financial systems. Establishment of credit bureaus to improve exchange of information on credit history of economic agents and reducing fiscal dominance are important steps to ensure sound-lending activities. In this context, the role of micro finance in promoting the access of the low-income segment of the society to credit should be supported and encouraged. Third, the overall level of external financing and its composition is important for domestic access to finance. The benefits of capital inflows to economic growth would be higher with a developed financial sector. Central banks could best support this process through their contribution to macroeconomic stability. Thank you. 4  BIS Review 21/2008
But, having said that, it would be wrong to conclude that financial globalisation is to be blamed for the financial turmoil as it cannot be considered responsible for the fundamental causes and key weaknesses I identified earlier and which resulted in the associated mispricing of risks and the mismanagement of assets and liabilities by some financial institutions. On the contrary, financial globalisation has contributed, other things being equal, through international risksharing to cushioning the impact of shocks on national financial systems and economies and it has also facilitated the boosting of the capital buffers and the restoration of the balance sheets of banks weakened by the turmoil. Beneficial cooperation between authorities The recent financial market episode has highlighted an important implication of financial integration for central banking: the usefulness of effective cooperation and coordinated action by central banks in managing liquidity and ensuring the efficient functioning of interbank money markets. It has also clearly shown the benefits of closer cooperation and improved information-sharing between financial supervisors and central banks. Such enhanced interaction would contribute to a better assessment of the potential systemic implications of financial shocks, and assist in addressing market tensions or problems faced by individual financial institutions. IV. Globalisation, monetary policy and financial stability  There is one final and important issue I would like to briefly consider: the interrelation between globalisation, monetary policy and financial stability.

First, in a financially integrated world it has been argued that it is global monetary liquidity rather than domestic liquidity which affects domestic interest rates and domestic economic activity, mainly – though not exclusively – through its effects on liquidity premia. Second, it has been claimed that the level of longer-term domestic real interest rates is likely to be determined by global savings and investment rather than its national components. These influences can be expected to be more pronounced for smaller economies. Therefore, a smaller country which cannot affect the global supply of liquidity to any significant degree could then lose effective control of inflation. This reasoning, however, is dubious, and not supported by theory or confirmed by empirical evidence. For example, in a two-country new Keynesian model, it has been shown that, provided exchange rates are flexible, global monetary factors can affect the domestic price level only through their potential short-term effects on global output. 1 Interestingly, the sign of the spill-over effect is the opposite of what would be expected from the global liquidity hypothesis. A comparatively loose foreign monetary policy induces a depreciation of the foreign currency and has a negative impact on domestic demand and prices in the home country. The main conclusion of rigorous theoretical analysis is that monetary policy can affect domestic demand even in a fully financially integrated world and even in a small country, as long as exchange rates are flexible.
Figure 2 CPI inflation around the world (1)  Commodity prices (5)  (annual change, percent)  12  12  10  10  8  8  6  6  4  4  2  2  0  0  -2  -2  -4  -4 05  06  07  08  09  10  11  U.S.  Eurozone  Latin America (2)  Emerging Asia (3)  (monthly index, Jan.00-Sep.11=100)  250 200 150 100 50 0 00  02  Emerging Europe (4)  04  06  08  10  FAO foodstuffs WTI oil  (1) Regions weighted at PPP. Data through August 2011. (2) CPI includes Argentina, Brazil, Chile, Colombia, Mexico and Peru. (3) CPI includes China, India, Indonesia, Malaysia, South Korea, Thailand and Taiwan. (4) CPI includes the Czech Republic, Hungary, Poland, Russia and Turkey. (5) Data through September 2011. Sources: Bloomberg, CEIC Data, IMF and statistics bureaus of respective countries. BIS central bankers’ speeches  7  Figure 3 Inflation indicators (annual change, percent) 10  10  8  8  6  6  4  4  2  2  0  0  -2  -2  -4  -4 06  07  08  CPI  09  10  11  CPI excluding food and energy  Sources: Central Bank of Chile and National Statistics Institute (INE).

The second pillar of European financial sovereignty concerns the efficiency of retail payments and market infrastructure. Regarding retail payments, while the Single Euro Payments Area (SEPA) has proved to be successful, further convergence is still needed in response to the growing influence of major third countries’ firms in payments solutions. In order to preserve our sovereignty, a European strategy for retail payments would be necessary, with a view to (i) addressing market fragmentation and promoting unified European-based solutions, (ii) improving the protection of payment data and (iii) encouraging European players to take part in the current concentration in retail payments. Regarding infrastructure, the European System of Central Banks shouldered its responsibilities in strengthening European post-trade integration, notably through the Target2Securities platform. In the coming years, the set-up of a unified collateral management platform operated by the Eurosystem will be another key step directly contributing to an effective Capital Markets Union. Moving on to the third pillar, the international role of the euro is a key component of our European financial sovereignty. After a significant rise, the international use of the euro has declined since the financial crises of 2008–2012 and remains limited in comparison with the dollar. The US dollar is a clear advantage in the exercise of American power, while China cares about the internationalisation of the renminbi. A larger use of the euro would help to protect our businesses against foreign exchange risks or legal disputes abroad. In this regard, the concrete measures identified by the European Commission in December are particularly relevant.
The main challenges for our as well as many other central banks relate to technology that processes enriched data volume, data governance, their standardization for statistical purposes, maintaining the confidentiality principle amid increasing number of individual data, as well as the balance between the growing need for data and the burden it imposes for the economic reporting agents. Technology is currently one of the major challenges for almost all statistical institutions. Data alone is not enough if there is no adequate infrastructure to transform it into a form beneficial for decision-making. One such step ahead of us is building a modern data warehouse. The need to adopt, integrate, process, and report large amounts of data to multiple users on a daily basis requires a modern business intelligence-based information system. Adapting to such a technologically advanced system also requires data governance. Currently, there are several decentralized statistical databases, registries created for specific purposes of statistics and bank activities. The symbiosis of all these sources opens up a new chapter in the central bank – setup of systematized data governance. This process should focus on the need to recognize data as a central bank asset that should be governed at a strategic level. Learning from the experience of the European partners, the implementation requires a clear strategy, policy and guidance, as well as the need for standardization of data definitions, standards for data collection and management. In a word, there is a change in the organizational culture.

Such digitalization and innovation of financial services pose new challenges for their statistical monitoring and measurement. At the same time, there is a growing number of initiatives for active use of the socalled “big data” in the statistical world, a new paradigm that changes the profiles of both holders of statistics, statistical processes, and overall economic and financial analysis. Statisticians globally are increasingly experimenting with large structured and unstructured computergenerated data, the sources of which are all of us. The possibility of using this data as an innovative source of official statistics is being increasingly explored. The challenges are surely immense, given the need to assess the accuracy, sustainability and methodological foundations of these data systems, as well as the need to find human resources and appropriate management technologies. Last but not least, there are investments for improving the dissemination and communication of statistics to the public. It is a recurring cycle in which we are constantly striving for better communication by conducting surveys of reporters and user satisfaction, regular publishing of statistical press releases… A new statistical web portal for external users – NBSat will be launched soon. This web portal will be a modern statistical tool designed for interactive communication with users, which will significantly expand their capabilities for data analysis of our central bank statistics.
In many places, for instance, substantial portions of the crisis measures remain on the central bank’s balance sheet. Here in Norway, the crisis measures relating to banks’ medium-term funding are on the balance sheet of the Ministry of Finance. 2  BIS Review 154/2010  The financial crisis also demonstrated the need for macroprudential policies. But who will have responsibility for these policies? The framework for macroprudential policies is likely to differ from one country to another. The Governor touched on these questions in yesterday’s speech. To sum up: Perhaps my question was not so naive after all. The examples above show that there is not an obvious answer to “what defines a central bank”. Nevertheless, some key principles may apply, both historically and across national borders:   As early as 1873 Walter Bagehot 1 formulated the well known general principles for the role of central banks. He said: “To avert panic, central banks should lend early and freely (without limit), to solvent firms, against good collateral, and at “high rates” The events in 2008 showed us that the lender of last resort function continues to be of the utmost relevance and importance.   The financial crisis also illustrated that central banks have an important role in creating and providing liquidity.   In addition, the establishment of Norges Bank in 1816 and the Bank’s intervention in the money markets in 2008 show that central banks also have an important role as “market maker of last resort”.

Jan F Qvigstad: What is a useful central bank? Speech by Mr Jan F Qvigstad, Deputy Governor of Norges Bank (Central Bank of Norway), at Norges Bank’s Symposium “What is a useful central bank?”, Oslo, 18 November 2010. *  *  *  It is a great pleasure for me to welcome you to this symposium. I would like to extend a special welcome to those of you who have travelled a long distance to be here today. November probably does not do justice to Oslo. To do that, we would have held the symposium in February or March, to show you the winter landscape, or in June or July, so that you might experience light summer nights. But November it is, and not without reason. You all know that the Governor of Norges Bank, Svein Gjedrem, will soon have served his two terms. The governor will step down at the end of the year. The Governor has always believed that too much attention is paid to persons and there is too little focus on the position that the person holds. By organising this symposium on a theme of keen interest to the Governor, we have tried to combine the strictly academic with respect for the way the Governor has filled his role.
Durmuş Yilmaz: Recent economic and financial developments in Turkey Opening speech by Mr Durmuş Yilmaz, Governor of the Central Bank of the Republic of Turkey, at the 78th Ordinary Meeting of the General Assembly, Ankara, 20 April 2010. *  *  *  I. Introduction  1. Esteemed Shareholders, Distinguished Guests and Members of the Press, Welcome to the 78th Ordinary Meeting of the General Assembly of the Central Bank of the Republic of Turkey. 2. I would like to start my speech with a brief evaluation of the global financial crisis that deepened to spread over the whole world in the final quarter of 2008 and took its toll throughout 2009. Later on, I will summarize the key macroeconomic developments that took place in Turkey in 2009. Finally, I will share my evaluations pertaining to inflation developments and monetary policy implementations. II. Global economic developments  Distinguished Guests, 3. The effects of the financial crisis, which first started in advanced countries and deepened mainly due to the bankruptcy of some major financial firms in the USA in September 2008, continued to dominate financial markets throughout 2009. Accordingly, growth rates slumped globally but particularly in advanced countries. Owing to extensive liquidity operations led by central banks and large-scale government interventions, the effects of the crisis started to subside as of the second half of 2009 and the global economy exhibited signs of a slow and gradual recovery. 4.

Also, once a firm has run into trouble, in part because it is in trouble and/or markets are dysfunctional, the marketable value of its assets are often found to be substantially less than valued in accounts – so losses are usually greater than originally expected, once a stress has occurred. Prior to the financial crisis, firms appeared to hold substantial capital to meet their then regulatory requirements, but in many cases this was illusory – the rules on what could count as capital had been weakened over time and much of it was not properly or easily lossabsorbing in the event. So the quality of capital is also of interest. There is also a challenge of what the minimum level of acceptable capital is, and how to meet it, post-stress. Suppose X is the appropriate level of capital pre-stress, then substantial losses will always leave a firm  BIS central bankers’ speeches  3  with significantly less than X. And raising extra capital in the market in those circumstances is not always feasible, nor can a balance sheet be quickly run down to reduce capital requirements. So how can a firm meet the ongoing requirements for the normal level of capital after a stress event? The answer is usually to start with a buffer above the minimum acceptable and/or to have some way of creating extra capital in a crisis.
Although at different speeds and with notable exceptions (the Bank of Japan, for instance), it becomes increasingly clear that the low interest rate era is drawing to a close. Emerging economies are usually affected when interest rates go up in advanced economies and it is essential that such episodes find them in good order domestically. 4  This is why the ongoing tensions surrounding macroeconomic equilibria in Romania since the previous Report are a reason for concern. The chief driver of economic growth was domestic consumption (Figure 21), while the external balance made a negative contribution because of the widening deficit on trade in goods (Figure 22). Investment did not contribute significantly to economic growth. Economic growth above potential is not always a cause for concern, particularly when it takes place after a recession, for instance. Moreover, there are a number of arguments that show that the economy’s growth potential can be larger than that calculated at present for both technical reasons (the time series are not long enough and were influenced by the 2009-2010 recession) and fundamental reasons, which, however, can be turned to good account only by structural adjustments. Thus, full employment is a textbook requirement for fulfilling the economic growth potential: important resources come, in this respect, from the almost 3 million Romanians working abroad and circa 4 million inactive Romanians. Nor is the growth structure per se a systemic risk, especially if part of the pick-up in domestic demand is accommodated by the rise in domestic supply.

It will be critically important that these decisions put the Commonwealth on a sustainable fiscal path going forward. As in other examples, such as New York City in the 1970s, the fiscal adjustment will be 2/3  BIS central bankers' speeches  painful, and many important decisions will undoubtedly be unpopular. While the pain has been— and will continue to be—widely shared, it is also critical to seek ways to ensure that the benefits from the restoration of growth are shared broadly. How exactly to make this work is an open question that I am certain the oversight board and its stakeholders will consider carefully over the coming months. The New York Fed will continue to help in the best ways we can—by providing independent research and analysis, and by leveraging our convening authority to bring together stakeholders to share expertise, explore opportunities, and provide information to those who need it most. We recently held two events on the Island—one for small business owners impacted by the storm and another for credit unions. We plan to do more in the months and years ahead, and I look forward to gaining a better understanding of conditions on the ground and how we can help when I travel to Puerto Rico and the U.S. Virgin Islands next month. Now, I’d like to turn it over to Jason Bram, who will talk more about what we are starting to see in terms of the economic impact of the storms.
Given that the pace of the internationalisation of Islamic finance has accelerated during this period, it has heightened the urgency to chart the next phase of development of Islamic finance to ensure that financial stability continues to be preserved and that the financial system continues to serve the economy. Its resilience during the global financial crisis should not result in complacency. As we move forward, there are three key imperatives in addition to the efforts to ensure financial stability for the industry and to the continued development of the financial system. BIS central bankers’ speeches  1  First is the need to highlight with greater clarity the value proposition of Islamic finance so as to ensure that it remains a form of financial intermediation that serves the real economy and that it will continue to be a benefit to society. This requires the development of financial products and services that manifests the value propositions of Islamic finance, and that such products are marketed with simplicity so as to facilitate a greater understanding of the main benefits of the products. In relation to this, Islamic finance presents significant appeal to the growing Socially Responsible Investment (SRI), sustainable investments and ethical finance. This is particularly relevant in the context of the recent global financial crisis. It has brought to the forefront the need for the financial system to be linked to the economy and for the need for greater and improved levels of transparency, fairness, ethics and social responsibility in modern finance.

Mr Latter gives an overview of the current monetary policy stance of Hong Kong Address by Mr Tony Latter, a Deputy Chief Executive of the Hong Kong Monetary Authority, at the CLSA Investors’ Forum in Hong Kong on 17 May 1999. I should like to say a few words about the present stance of monetary policy in Hong Kong and its relation to the broader state of the economy. Hong Kong has a fixed exchange rate against the US dollar. The pros and cons continue to be a focus of debate in some quarters, but I don’t intend to dig over that ground yet again today. Suffice it to say that over the past fifteen years Hong Kong has enjoyed, on balance, remarkable prosperity. I happen to think that the visible and trusted monetary discipline of the exchange rate link has been a decisive contributory factor to that prosperity. Of course, one cannot deny that there is some association between the strength of the exchange rate and the level of interest rates on the one hand, and the current recession on the other, but I would caution against adopting too short-term a horizon when drawing conclusions, and I would also suggest that some of the adjustment which we have experienced - for example in property prices - was both necessary and somewhat overdue.