samchain/econo-pairs-v1 huggingface dataset:
To date, the inflation targeting policy must be said to have done well on the whole in this respect; today, the inflation target seems to function as a credible benchmark, a nominal anchor, for price and wage formation. That wage formation does not yet seem to have been fully adjusted unemployment in Sweden remains high - is another matter. It probably has more to do with structural factors. For asset markets, however, there is no such clear benchmark. So neither is there anything to prevent psychological factors - irrational exuberance, if you like - from continuing to inflate various asset prices beyond what is reasonable in relation to underlying economic conditions. The path of the American stock exchange in recent years demonstrates that low inflation is often not sufficient to ensure a restrained development of asset prices. That this can be seen as something of a dilemma is understandable. Does this imply that monetary policy should in fact be used more than hitherto for actively and directly countering sizeable price increases in asset markets? There is no obvious answer to that question but the dominant opinion at present is that the answer should be no. This is because central banks would find it difficult to identify true bubbles in the development of asset prices and judge the BIS Review 127/1999  4  appropriate measures correctly. Still, I would like to leave the door ajar. Situations may arise that are hard to foresee today and where monetary policy may need to play a part.

We must also work to mitigate any effects and try to ensure that crises which do occur are not as extensive and economically costly as those we have experienced in recent years. The objective, in other words, must be to combine the necessary regulation and supervision of the markets with the benefits that a well developed financial system can confer. The regulation and supervision of financial firms are necessary for various reasons. But these functions must be carried out in such a way that they do not throttle the potential that can contribute to greater prosperity in the global economy. Conclusion Many countries have deregulated their financial systems in the past two decades. For the first time since the outbreak of World War One, capital is again more or less free to move across national borders. Moreover, major changes in communications and information technology have provided new methods and instruments for risk management. As a result of all this, today the financial system is more extensive and globalised than ever before. This holds even though capital flows relative to GDP were also large at the turn of the nineteenth century. At the time, however, it was other countries that received the flows, which also took a somewhat different form. The rapid pace of financial developments and internationalisation is really a logical consequence of the globalised production of goods and services, with the strong growth of cross-border trade in the world economy. These developments have accentuated the need of new financial solutions for firms and households.
Indeed, circuit-breakers played an important role in stalling the Flash Crash. In the face of pass-theparcel algorithmic dynamics, the Chicago Mercantile Exchange imposed an automatic 5-second pause on trading in its S&P 500 E-mini futures contracts. 32 It worked, providing time for human traders to take stock – and, as importantly, buy stock. The rationale for such rules is well-understood. They temporarily impose a minimum execution time on trading, T. By calling a halt to trading, circuit-breakers provide a means of establishing a level informational playing field for all traders, long and short, fast and slow. In other words, they help solve the asymmetric information (risk and uncertainty) problem across traders of different types. The changing topology of trading, both speed and structure, has made these informational frictions more acute. So the case for circuit-breakers is perhaps stronger now than in the past. Circuit-breakers are also a means of heading-off suicidal spiralling, when algorithms join hands and chase each other over a cliff edge, as during the Flash Crash. Because they are automatic, circuit-breakers allow time for human intervention to catch-up with, and forestall, machine (summary) execution. They close the gap between man and machine, if only temporarily. Because HFT has widened this gap, the case for deploying circuit-breakers is stronger now than in the past. Historically, circuit-breaking rules have been security or exchange-specific. But in a world of multiple exchanges, and increasingly correlated securities, rules of this type may not be restrictive enough. Contagion across securities and exchanges has become the rule.

has noted that climate change may result in physical and transition risks that could impact the 1/2  BIS central bankers' speeches  safety and soundness of individual financial institutions and have broader financial stability implications for the banking system. In response, the Committee established the TFCR to undertake work on climate-related financial risks in February of 2020. I am acting as a co-chair of the Task Force, along with Frank Elderson, Executive Director of Supervision at the Netherlands Bank. In the first phase of work, the TFCR conducted a stock-take of members’ existing regulatory and supervisory initiatives on climate-related financial risks.3 This work highlighted the increasing focus on climate-related risks. To take the work forward, the TFCR is following a gradual and sequential approach from a banking supervisory perspective with a current focus on understanding climate risk transmission channels, as well as methodologies for measuring and assessing these risks. The TFCR plans to complete these fundamental research initiatives by mid-2021. Building on this analytical work, the TFCR will then consider the extent to which climate-related financial risks are incorporated in the existing Basel Framework and identify effective supervisory practices to mitigate such risks. The TFCR does not currently have a view on potential prudential treatments or supervisory expectations related to the mitigation of climate-related financial risks.
The risk management function typically promotes the use of common risk measures across business lines. It can then report the firm-wide risk data to senior management. Even though no single model for organising an integrated risk management function has become dominant, all firms that establish integrated risk management units are highly dependent on the quality of their information technology to collect, analyse and report firm-wide data efficiently and effectively. Some participants have found that the greatest challenge in developing a centralised risk management structure lies in constructing compatible and efficient management information systems across all of their businesses. As a result, they devote substantial resources in terms of personnel and expenditures to the maintenance and enhancement of their management information systems. This trend is important for two reasons. For one thing, comprehensive firm-wide assessment of risk and consistent reporting helps to ensure that the firm is aware of the wide range of risks to which it is exposed, that it understands the relative  4  BIS Review 8/2005  importance of various risks and how they may interact, and that the firm is less likely to ignore material sources of risk. This facilitates early detection and resolution of problems. For another, this integrated risk management function requires a balance between the centralisation of some functions within the group as a whole, and the need to be close to local markets to incorporate better knowledge of local needs, risks, sensitivities and regulations.

The first two trends that I have cited relate to the internal efforts firms undertake to identify and measure their risks. The third trend I’d like to highlight concerns the dramatic increase in the use of transactions designed to transfer exposures to risk, especially to credit risk, to outside counterparties and even to investors. Credit risk transfer This past autumn, the Joint Forum released for public comment a study on the current use of credit risk transfer activities among financial service providers, along with a series of recommendations on how to promote sound risk management practices in this area. In recent years, the markets for credit derivatives, credit default swaps, collateralised debt obligations and other products have grown tremendously, providing financial service providers with new mechanisms through which they can reduce their direct exposure to credit risk. Such tools may also help to reduce concentrations of risks in particular firms. BIS Review 8/2005  5  I think that the emergence of these new channels for re-packaging and selling off credit risk serves as another means of looking forward to the future to manage risk. In this sense, the rapidly expanding secondary market for new credit-risk related instruments bears witness to the innovation and the search for new ways of managing risk that is so vital to the continued evolution of the financial sector. However, we must remember to look back at the fundamental risks involved in these practices.
The TUC estimate that as many as 1 in 9 workers may be in work which is insecure in income terms.7 This income insecurity has been a key and recurrent theme in my recent discussions with charities, faith and community groups across the UK. For some, these income insecurities have been worsened by the introduction of Universal Credit. This has added time lags in payments to claimants, caused rising concerns about benefits sanctioning and has heightened uncertainties about eligibility for work criteria.8 Recent research by the Resolution Foundation has found that pay volatility in fact affects a significant number of UK workers, not just those on low pay or the gig economy.9 Over 90% of those who remained with the same employer during 2016-17 experienced at least one month when their take-home pay varied by more than 5%. This pay volatility is more prevalent for those on lower earnings and among the young. Income volatility appears to have significant welfare costs for workers. A recent study found the average worker would be willing to sacrifice a fifth of their wage to avoid a variable work schedule set by their employer.10 In practice, gig workers tend to be paid less not more. Pay of self-employed and zero-hours contract workers lies significantly below employed and permanent contract counterparts (Chart 12). This is a malign coincidence of lower and less certain income.

Deposit accounts have increased from 19,738 deposit accounts per 10,000 adults in year 2000 to 29,311 deposit accounts per 10,000 adults this year. Similarly, there has been significant increase in loan accounts from 3,105 loan accounts per 10,000 adults to 8,600 loan accounts per 10,000 adults. More than 80% of our adult population have some form of deposit accounts. The ranking by World Bank’s Consultative Group to Assist the Poor shows that Malaysia is in the 20th position globally, [Singapore is in the 16th position; Thailand: 33rd; Indonesia: 70th; and the Philippines: 71st]. While we have made considerable progress in improving financial inclusion agenda, the Bank is unrelenting in our aspiration to shape our financial system to be more inclusive and effective in supporting a balanced economic growth for our country. Our financial sector Blueprint that will chart the direction of development of our financial system in the next ten years places a high priority on the financial inclusion agenda. Among the areas of focus are the development of cost efficient delivery channels that will enhance the outreach of financial services, expand the range of products and services to meet the distinct financial needs of the underserved and strengthen the institutional arrangements to enhance the capacity of providers of such financial services. Equally, important will be the attention accorded to financial consumer education and protection in which the standards of consumer care are high and consumers have choices and are confident about making their financial decisions.
It will, in other words, be more expensive for the banks to increase lending in good times at the same time as this will create some protection against losses when a downturn comes. As I mentioned earlier, the policy rate is an instrument that has an indiscriminate impact on the economy, while countercyclical buffers, for example, can be seen as an instrument that is more specifically aimed at the “credit cycle”. Instruments of this type could also reduce the need to use the policy rate to promote financial stability. The special characteristics of the Swedish banking market – what demands do they make? I would now like to draw your attention to the conditions on the Swedish banking market that indicate that substantial safety margins are justified. Sweden has a large banking sector in relation to the size of the economy and the banks have substantial operations abroad (see slide 7). At the same time, the market is dominated by a few large players. These banks also have low risk weightings for, among other things, mortgages. Another risk factor is that Swedish banks are highly dependent on market funding, particularly in foreign currencies (see slide 8). In addition there is the effect of the market players’ expectation that the government will ultimately act as a guarantor of the banks’ operations and will not let them fail, in other words there is an implicit state guarantee.

Given the Riksbank’s current mandate, it is difficult to accept large deviations from the inflation target over a long period of time. The more the inflation target is stretched, the more important the question of the general public’s confidence in the target will be and our principal’s attitude to the framework. This worries me, as the framework with a focus on price stability and an independent central bank has been successful as a nominal anchor in the economy. I therefore consider it important that we “stick to our last” and safeguard the inflation target. This does not mean that I oppose a further development of the framework that could lead to better attainment of the inflation target. However, this is a discussion to which I will have to return at a later point. References Bean, Charles (2009), The Great Moderation, the Great Panic and the Great Contraction. Schumpeter Lecture, Annual Congress of the European Economic Association, Bank of England. Bernanke, Ben S. (2010), Monetary policy and the housing bubble. Speech at the Annual Meeting of the American Economic Association, Atlanta, Georgia on 3 January 2010, Board of Governors of the Federal Reserve System. Bäckström, Urban (1998), The present situation. Speech on 25 August 1998, Sveriges Riksbank. Bäckström, Urban (2003), “1990-talets väg till prisstabilitet” (the 1990s route to price stability). Chapter 6 in Jonung (ed.) På jakt efter ett nytt ankare. Från fast kronkurs till inflationsmål. (Hunting for a new anchor. From fixed exchange rate to inflation target) SNS Förlag.
Secondly, we need to double our efforts to raise the level of awareness on the basic safety steps to deter payment fraud. The recent 2-month long “Think Online Safety, Think C.A.R.D.” campaign, jointly organised by the Association of Banks in Malaysia (ABM) and the NCG, to promote safe online payment practices, is a step in the right direction. The final session of the campaign will be held in Sasana Kijang today. Similar campaigns should be organised and expanded to reach a wider segment of the Malaysian population. iii. Thirdly, the industry should ensure the timely implementation of JomPAY. This would enable both consumers and businesses across the country to benefit from the strong value proposition that JomPay will create in increasing the efficiency and convenience of online bill payments. iv. Fourthly, banking institutions should conduct regular reviews on the adequacy and robustness of payment system risk management measures and the effectiveness of consumer protection measures. Where the review discloses gaps and inadequacies, banks must take immediate steps to rectify the weaknesses to preserve public confidence. Adequate resources must be allocated to this effort. v.  Fifthly, as part of the overall improvement in customer service, the banking industry should keep customers adequately informed of the dispute resolution procedures, in the event of fraud. Any disputes should be resolved in a timely manner.

This is set to change with the implementation of JomPAY, which is a common and open platform that allows customers of any bank to make online bill payments to any merchant registered with JomPAY. In other words, a merchant will be able to receive payments from customers across all participating banks. This would not only reduce duplication of investment costs by the banks, but also bring about greater convenience, cost savings and efficiency gains to both consumers and merchants. JomPAY is targeted to be rolled-out in phases starting from next month. (In the next presentation, the Director of Payment Systems Policy Department will provide you with further details of the supporting e-payment infrastructure and the strategies undertaken by Bank Negara Malaysia to accelerate the country’s migration to e-payments.) d.  Safeguarding the security of transactions  Ladies and gentlemen, let me now move on to the issue of security and consumer confidence in the use of online banking and e-payments. Considerable efforts have also been taken by the industry to improve user confidence in the use of payment cards. As I mentioned earlier, the banking industry had migrated our payment cards to the more secure chip-based cards in 2005. The investment cost of RM200 million was subsequently recovered through the projected fraud savings in just two and a half years.
Furthermore, in 2002, the International Monetary Fund and the World Bank undertook a comprehensive assessment of the Zambian financial sector through the Financial Sector Assessment Program (FSAP). In response to the weaknesses noted in the FSAP, Cabinet approved the Financial Sector Development Plan (FSDP) covering the period 2004 – 2009. Apart from addressing the weaknesses identified in the FSAP, the FSDP sought to further  BIS central bankers’ speeches  1  strengthen the Zambian financial sector as well as to guide efforts for realizing the vision of a stable, sound and market based financial system that would support the efficient mobilisation and allocation of financial resources necessary for economic diversification and sustainable growth. To this end, the Bank of Zambia in conjunction with the Government has been undertaken reforms in the financial sector under the FSDP, which is now in the second phase. Through the FSDP, the Bank of Zambia promoting competition among banks. Competition in the banking sector while desirable can have both negative and positive effects. In this regard, competition can be viewed in terms of being a public good which can significantly contribute towards access to better quality and cheaper financial services. The challenge, therefore, is to ensure that supervisory effort is adequately able to change and effectively respond to innovations and events in the financial system. It is expected that this would consequently promote confidence in the financial system which is necessary for insulating the economy from adverse internal and external shocks.

This can be  2  BIS central bankers’ speeches  done through proper organization, meaningful investment in technology and proper pricing of products. Lastly, let me remind all of us here that like any player seeking entry in the market, the cooperative bank which we wish to revive will be bound by the same legal, fiscal and prudential regulations as other players. It is therefore important for those who will be entrusted to manage the affairs of the institution to prudently provide leadership that seeks to promote the well being of all stakeholders. As such the aspect of good corporate governance practices in the banking and financial services sector cannot be over-emphasized. I thank you all for your attention! BIS central bankers’ speeches  3
But their ability to create money and extend credit could nonetheless be affected, especially if this new form of electronic money enters into widespread use. Norges Bank has begun the work of assessing what the future form of money should be. This is a long-term process. Whatever the conclusion, we can be fairly certain that banknotes and coins will be with us for many years yet. Deposit money in banks will most likely continue to be the dominant means of payment, even if electronic central bank money is introduced. Nevertheless, the very fact that these questions are being raised heralds a new era for our monetary system. Choosing the direction our future monetary system and payment system will take requires not only economists, but also technologists, lawyers and other social scientists. And political decisions will ultimately need to be made by our elected representatives. It devolves upon the Storting to supervise the monetary system of the realm. The questions are numerous, but we already have one of the answers. Central banks were established to build confidence in the monetary system. That is still our primary task. We cannot leave the monetary system entirely in the hands of private entities. There will be a role for central bank money. We must have a legislative framework and a means of payment backed by the authorities to ensure trust in our money – as history has shown. Thank you for your attention.

This was because, in both cases, the shocks were related to a lasting shift in the geopolitical landscape, and reductions in oil supply could not be fully offset by oil from other sources. [6] Today, although the EU response will cushion the rise in energy costs, fossil fuel prices are likely to be higher for some time. Fully replacing European imports of Russian fossil fuels is a challenge in the short term, even though there are an increasing number of examples of substitution effects taking place. [7] Over the longer term, the war is likely to accelerate the green transition in Europe, including the switch to renewables. This will require considerable green investment but will also weigh on investment in oil and gas production during the transition phase. That could put upward pressure on fossil fuel prices while demand for those fuels remains high. If energy prices are durably higher during the transition, it may have an impact on industrial production in Europe, affecting both supply and prices. This is certainly how firms in the euro area see the situation. In a recent ECB survey, at least 80% of respondents expected the ongoing transition to  make the raw materials and energy they use more expensive, leading to higher prices for their products. [8] Second, globalisation is and will be changing. The disruptions created by the pandemic, the exposure of vulnerabilities, the new geopolitical landscape and the prospect of higher energy and transport costs look set to trigger a reassessment of global value chains.