samchain/econo-pairs-v1 huggingface dataset:
-  Second, with regard to monetary policy, let me reiterate that one must carefully distinguish between the monetary policy stance on the one hand, which should remain focused on the macroeconomic objective of price stability in the medium term, and the refinancing conditions of the banking system on the other hand, that may have to be adapted in times of financial turmoil. Moreover, a solid anchoring of inflation expectations seems to me particularly crucial in a period of economic and financial uncertainty. -  Last but not least, in my view, regulatory issues related to the increase of financial innovation over the recent period of rapid market growth should now be a matter of primary concern. Moreover, the return of greater market discipline, closer monitoring of risks by market participants and quite simply the use of commonsense principles, such as acknowledging that there is no such thing as low risk/high return assets, are in my view prerequisites for a return of confidence to the markets. 4  BIS Review 78/2008

The German government has announced a package of measures which aims to increase the share of renewable energy in Germany’s energy mix to 80% by 2030, up from an earlier target of 65%. Concerted action by policymakers, corporates, financial institutions, and individuals will be key in the drive to mitigate climate change. It is in the name of facilitating such concerted action, that we are gathered here today at the Green Swan Conference. The financial system can be a powerful lever to enable a credible and inclusive transition to net-zero. Central banks and financial regulators, whatever their mandates, have a role to play in greening the financial system to support the net-zero transition. It is this vision that led to the formation in 2017 of the Network of Central Banks and Regulators for Greening the Financial System, or NGFS. The NGFS has grown significantly, from 8 founding members to 114 today, representing a diverse group of advanced, emerging, and developing economies. The Network has accomplished much in the last four years, breaking new ground and providing valuable guidance on integrating climate and environmental risks into the work of supervisors and central banks. The integration of climate-related and environmental risks into financial stability monitoring and prudential supervision is becoming a reality. The next phase of the work of the NGFS is to move from awareness to action. The NGFS Glasgow Declaration, issued at COP26 in November last year, reiterated our commitment to expand and strengthen our collective efforts towards greening the financial system.
Another important dimension of risk-sharing that enhances financial inclusion lies in the potential for Islamic finance to become a powerful tool that can enhance financial access for emerging economies, in particular the less developed countries that have been marginalised  BIS central bankers’ speeches  3  by modern finance. Debt financing or risk-transfer activities are heavily dependent on conventional measures of financial and economic performance. In contrast, equity financing, with its risk-sharing elements, can provide the required financial solution that is not dependent on such conventional assessments. This will allow those countries which are less developed but have assets and resources to access finance. The strong emphasis on governance and risk management in risk-sharing contracts will also have an important role in catalysing broad-based improvements in standards of oversight and financial discipline in these countries as safeguards against irresponsible practices. Taken together, these elements of Islamic finance offer enormous potential for less developed countries, more so those that are rich in resources, to mobilise and channel economic resources to finance growth and development, and significantly raise standards of living for their communities. In the sukuk market, sukuk structured in profit and loss sharing partnerships (Musharakah) represents one of the majority in global sukuk issuances and outstanding. The emergence of sukuk as an alternative fund raising and investment instrument has opened up an important new source of funding for long term development projects.

Risk-sharing transactions and undertakings under the participatory finance models in Islamic finance also enhances prospects for increasing financial inclusion and in bringing the financially unserved into the economic mainstream. In many IDB member countries, studies have shown that economic development is constrained by the lack of access to finance, given that only about 30 percent of the adult population use formal financial intermediaries. Greater outreach to small and medium enterprises (SMEs) and microenterprises can be achieved through the wider application of equity-based structures in financing for SMEs and Islamic microfinance given their strong emphasis on promoting entrepreneurship and valuecreating activities. This contributes towards the overall objective of generating inclusive growth that enhances the prospects for job creation. Integration with other financial products such as microtakaful and social welfare arrangements such as endowment (waqf) can also provide a total financial solution for the lower income groups and small businesses. Risk-sharing in Islamic finance also extends to the creation of a more equitable and just distribution of wealth. Redistributive instruments such as obligatory alms giving (zakat), endowment (waqf) and charity (sadaqah) complement risk-sharing financing tools to form part of a comprehensive approach to address poverty and promote social justice within the community, aspects that are important in increasing the potential for a more balanced economic growth.
Integration of the risk management function  One of the most notable advances in risk management across all three financial services sectors is the growing emphasis on developing a firm-wide assessment of risk. This constitutes the first trend in the Joint Forum’s report. Improvements in technology and telecommunications have made it easier for firms to gather, collect, and analyse large amounts of data on their exposures and business activities efficiently and increasingly in near “real time.” To make the best use of firm-wide data, some organisations have established a dedicated risk management function to foster more highly integrated and systematic approaches to risk measurement and management. 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. Reports may range from daily updates on “value-at-risk” trading positions to regular, if less frequent, compilations of the results of stress testing. The broader use of shared definitions to guide the comprehensive reporting of risk across the firm enables the integrated risk management function to identify concentrations of risk. Concentrations matter particularly when various business lines within the firm have different kinds of exposures to the same counterparty. Comprehensive and consistent reporting helps, moreover, to ensure that the firm is aware of the wide range of risks to which it is exposed; that it understands the relative importance of various risks and how they may interact; and that the firm is less likely to ignore material sources of risk.

Attaining that promise of greater financial stability is a challenge that is worthy of all of our talent, of our time, and of our hard work. With that, I would like to thank you for welcoming me to your conference. I offer my best wishes for fruitful and thought-provoking discussions. BIS Review 32/2004  5
Under the Bretton Woods system, countries whose public finances were in disequilibrium, or who allowed inflation to rise for other reasons, had to let their exchange rate depreciate against the dollar. When the exchange rate against the dollar fell, the value of money measured in gold decreased. BIS Review 136/2008  5  The post-war period was marked by the strong conviction that the economy could be finetuned by the coordinated use of instruments decided at a centralised level. The value of the krone was pegged to the dollar and to gold while a policy of low interest rates was accompanied by an ample credit supply. This was possible in a highly regulated economy. The positive attitude to regulation probably stemmed from the period of rationing and centralised government during World War II. The system had functioned reasonably well and a regulatory apparatus was already in place. 21 Internationally, there was widespread desire to stabilise economic developments, originating in theories published by John Maynard Keynes in the early 1930s. This was part of the background for Norwegian politicians’ ambition to fine-tune the economy in Norway. The works of A. W. Phillips 22 , published in 1958, also supported this view. According to Phillips, a country could apparently choose between low unemployment and low inflation. This menu option is often referred to as the Phillips curve. And what kind of “option” was that? Unemployment is real, while inflation is only changes in an index! By formulating the question in this way, the choice was obvious.

After the onset of the global financial and economic crisis the franc appreciated by 17% vis-à-vis the euro in 2010 alone, driven by the reallocation of global capital on a massive scale. This has fuelled deflationary risks and slowed economic growth. To counter these effects, massive unilateral interventions were conducted, leading de facto to a closer alignment of monetary conditions with those in the euro area. This points to the conclusion that in a multipolar world having appropriate domestic macroeconomic policies is not sufficient to absorb external shocks. Unless a country or an economic region also has a deep and liquid capital market and its size is sufficient to absorb large capital flows, it is bound to become subordinate to the existing poles, or to be squeezed between them. The prosperity of the euro area countries is inextricably linked to the success of the euro. The euro: a unique construct The euro is the only major currency that is not issued by a single sovereign state, but by a union of states. As this is a totally unprecedented monetary framework, it is fair to ask whether it has what is needed to become one of the poles of the new system – in other words, is it sufficiently robust to ensure sound economic policies at the euro area level and in the individual countries, and does it have a large and deep financial market? Decisions are about to be taken on strengthening the governance of the euro area with a view to achieving these objectives.
Luis M Linde: Spain and the issues facing Europe Speech by Mr Luis M Linde, Governor of the Bank of Spain, at the dinner of the Sixth High-Level Seminar of governors of the Eurosystem and Latin American central banks, Santiago de Chile, 8 December 2012. *  *  *  Dear President Vergara, Dear Vice-President Constancio, Dear Colleagues, Ladies and Gentlemen, It is for me a real pleasure to participate in the 6th edition of this Seminar of Governors of the Eurosystem and Latin American Central Banks and to be given the opportunity to address this speech to you. The Banco de España has been co-organizing this High-Level Seminar with the ECB since its first edition, in 2002. Also, when the Seminar has crossed the Atlantic – to Brazil, in 2004, to Mexico, in 2009, and now to Chile – we have had the pleasure of collaborating with our Latin American colleagues; on this occasion with the Central Bank of Chile. So, as a co-organizer, I would like to welcome you all, too. [Sean bienvenidos. Sejam Bemvindos.] A dinner speech is expected to be both light or, at least, let’s say, not very heavy and, in any case, brief. This should be the case, especially because this has been a long day for many of us, just arrived from far away to this marvellous country. To be light is not going to be easy.

A recurrent vulnerability of the region has traditionally been the reliance on foreign currency denominated financing. This financing pattern was exposed to sudden stops in capital flows. With the progressive achievement of price stability, the attractiveness of local markets and local currencies increased and the Latin American authorities took this opportunity to promote the development of their domestic financial markets. The widening of the local banking base has been an essential complement to this policy. Foreign banks investing in the region have played an important role in a context of financial and banking liberalization. Most of those foreign banks brought a model based on retailing that fitted particularly well the need to strengthen the local financial base. The fact that many of the subsidiaries had to finance themselves locally – independently from parent institutions – also helped to promote financial inclusion among the population and contributed to reduce external vulnerabilities. Conclusions The economic and financial crisis in Spain and other euro area countries – with its particular mixture of international and domestic elements – has also brought important lessons in terms of financial stability. BIS central bankers’ speeches  3  One of them is the relevance of the macroprudential layer of supervision and the fact that having a good micro-prudential supervision is a necessary, but not sufficient condition to build a resilient financial system. There is the need for developing the framework and the tools to ensure that the macro perspective is duly taken into account.
In this regard, we recently announced the Education and Industry Forum on Financial Services Culture to support these efforts. The Forum, which kicked off in April, brings together business schools and industry representatives. Participants will research and design case studies for business school students. This will mean that students planning to enter the industry will have the tools to handle the ethical challenges that can arise in real-life work situations. 2/3  BIS central bankers' speeches  “Convene” means bringing together stakeholders to share best practices. And that’s where our Supervisors Roundtable comes in. The Roundtable brings together supervisors from around the world to share their jurisdictions’ approach and what they’ve learned from it. Participants have developed a shared set of tools for supervisors that can be leveraged in cultural assessments. Finally, let me turn to this principle of “catalyze,” and how we can use our position in the heart of the Financial District, to create change. As well as talking the talk—we’re walking the walk. This year, for the first time, this Bank is taking the Banking Standards Board (BSB) Assessment. The BSB Assessment measures the extent to which nine characteristics are demonstrated by an organization, and it includes things like honesty, accountability, and respect. The assessment started in the UK, and the Irish Banking Culture Board now takes a similar approach. I would love to see firms in the United States adopt an industrywide survey that can measure culture and benchmark banks against their peers.

And no system should be static, since regulation will need to evolve alongside the business. Will these reforms prevent future financial crises? Almost certainly not. Financial crises have been around for thousands of years (we know that the Romans had them for example) and can be caused by all sorts of unexpected, unpredictable events, including natural catastrophes. We have to assume there will be crises in future. But what the reforms should have done is made the financial system, and its component parts, much more resilient in the face of shocks. Fewer firms should fail, fewer still in a disorderly fashion. Financial instability is therefore less likely and hence there should be greater continuity of financial services. And in consequence of a more resilient financial sector, the wider economy should be able to better withstand shocks with less detrimental effects on unemployment, output or price changes. Has too big to fail been ended? Not yet. The policies being put in place should, however, take us a considerable way towards that objective. It will certainly be a lot easier to handle a major financial firm failure once they are in force. It should be much less likely that public money is required to underpin financial stability in future. Has there been over regulation? The honest answer is: quite possibly, but no one can be sure. This question has many aspects – have there been some reforms that are unnecessary given others?
This can include credentials, jargon, control over journals and control over training the new experts. 20  But this boundary work can also  reduce their effectiveness, especially in a world where there are many alternative sources of views. A recent blog post by Bank of England staff compares the linguistic complexity of our publications to other sources of information and finds they require a level of reading comprehension which makes them accessible to only one in five people (Chart 2). 21  For example, at the Bank of England we have learned that talking about  “prices and jobs” is far more effective than economists’ jargon of inflation and employment. And in preparing this speech I was pleased to discover that linguistic analysis found it was at an “intermediate” level of linguistic complexity – equivalent to a political speech or a tabloid newspaper. 19  Papacharissi, Z. (2002) The Virtual Sphere: The Internet as a Public Sphere, New media & society, 4(1), 9-27 Rifkin and Merton (1997), Negotiating Expert Status.

As Andre Gide said, “Trust those who seek the truth but doubt those who say they have found it.”  26  A good example of that is the use of “fan charts” in forecasts produced by the Monetary Policy Committee (MPC) which show the wide range of possible outcomes for a given set of initial circumstances. 27  However, conveying uncertainty increases the complexity of a message, making it increasingly difficult to do in a world where short form is paramount. For example, it is a lot easier to tweet “BoE forecasts growth of 2%” than it is to tweet “If economic circumstances identical to today were to prevail on 100 occasions, the best collective judgment of the MPC is that the mature estimate of GDP growth would lie above 2% on 50 occasions and below 2% on 50 occasions,” even though that would be a more accurate description of the true meaning of the fan charts. In short, the modern challenge for experts is how to communicate with brevity, but without bravado. 28  23  O'Neill, O. (2002) Reith Lectures: A Question of Trust. O’Neill, O. (2017) Questioning Trust, Routledge Handbook (Mineograph). 25 King, M. (2004), “What Fates Impose: Facing Up to Uncertainty,” Eighth British Academy Annual Lecture, December. 26 Gide, Andre (1952), Ainsi soit-il ou Le jeu sont-faits, Paris: Gallimard. 27 Another example is the Chicago Booth IGM Experts Panel, in which economists are asked not only for their responses, but also how confident they are in their answers.
2  For the banks to manage the stress test their Tier 1 capital ratio, that is, their Tier 1 capital in relation to their risk-weighted liabilities, must not fall below 6 per cent. In the stress test the major Swedish banks were calculated to have Tier 1 capital ratios of 8.9–10.3 at the end of the test period. 4  BIS Review 109/2010  Strong GDP growth The Riksbank’s Monetary Policy Report from July forecasts relatively high GDP growth in the coming years: that Swedish GDP will grow by 3.8 per cent this year, and then by on average just over 3 per cent a year in 2011 and 2012. (Figure: GDP growth). We could also note that the first quarter of the year had been better than expected. It is particularly pleasing that the upturn was on a broad front – all of the components of GDP contributed to the upturn. Moreover, the Riksbank also saw good opportunities for a continuing recovery. Domestic demand is being maintained by a continued expansionary economic policy, combined with an optimistic view of the future in both the household and corporate sectors. In addition, growth abroad is expected to rise during the forecast period. This will contribute to an increased demand for Swedish export products, which in turn will benefit business sector investment as resource utilisation rises. Our picture of a recovery in the Swedish economy is also supported by new statistics published after the Monetary Policy Report.

But this does not say very much about the future, of course. And as I mentioned at the beginning, I shall not make any overall assessment of economic developments here today; I shall wait until the Executive Board’s next monetary policy meeting at the beginning of September. I will now go on to describe how the Riksbank, and I personally, viewed monetary policy at the most recent monetary policy meeting at the end of June. Swedish monetary policy Following the financial crisis, monetary policy in Sweden has been aimed mainly at moderating the depth of the economic recession that came in the wake of the crisis. The repo rate has been held at an all-time low of 0.25 per cent for a whole year. The Riksbank has also provided the banks with more liquidity than normal, through a number of extraordinary measures. However, for some time now the situation has been such that we could begin to normalise monetary policy, and now in the final part of my presentation I shall describe in more detail our reasoning at the most recent monetary policy meeting. Normalisation of the repo rate In July we raised the repo rate from 0.25 to 0.50 per cent. I agreed with the picture of economic developments painted in the most recent Monetary Policy Report and supported both the proposal to raise the repo rate by 0.25 percentage points and the repo rate path described in the Report.