samchain/econo-pairs-v1 huggingface dataset:
More generally, the thin capital markets in Asia accentuated price movements when investor preferences shifted. This made Asian economies more vulnerable to financial shocks. So how have countries responded in the wake of the Asian crisis? On the East Asian growth model, no Asian country is abandoning exports or foreign investment as engines of growth, not even those countries which harbour reservations about the risks of globalisation. For small Asian economies, and Singapore in particular, the idea of relying on tiny domestic markets to stimulate growth and enterprise is inherently implausible. Larger economies may make more of their domestic markets, and indeed the ASEAN countries as a group need to integrate their markets in the ASEAN Free Trade Area, to make themselves more attractive to foreign investments. But no single domestic market can substitute for the world market, in an age where economies of scale are global, whether in industries like electronics and pharmaceuticals, or services like banking and telecommunications. BIS Review 19/2002  1  Indigenous enterprise is an important factor in economic development. Strong local companies add depth and resilience to the economy, while a spirit of entrepreneurship enables the population to seize new opportunities and thrive in uncertain times. But indigenous enterprise cannot rely on the traditional family firms, doing small scale businesses on the margins of a modern economy.

This guideline is unlikely to stand in the way of market development, as the $ is not a currency commonly used for transactions abroad, and non-resident entities would in any case wish to swap or convert the $ proceeds into a currency of their choice for overseas use. With this liberalisation, the following will now be possible. a. First, MAS will exempt all individuals and non-financial entities, which includes corporate treasury centres, from the $ lending restrictions of the non-internationalisation policy. This recognises that such entities are not usually the prime drivers of destabilizing currency speculation. b. Second, for non-resident financial entities that continue to be governed by the $ policy, we will lift restrictions in the following financial activities: i. Asset swaps, cross-currency swaps and cross-currency repos can now be transacted freely. MAS had hitherto treated such transactions as forms of $ lending. It will no longer do so. ii. Securities Borrowing and Lending (SBL) – Financial institutions in Singapore may now lend any amount $ securities in exchange for both $ or foreign currencydenominated collateral. MAS will lift the requirement that any lending of $ securities exceeding $ million has to be fully collaterised by $ collateral. BIS Review 19/2002  3  iii. $ FX options – Financial institutions may also freely transact $ FX options with nonresident entities. FIs no longer need to maintain documentary proof showing that $ FX option transactions with non-resident entities are for hedging purposes. iv.
We believe the systemic importance of the payments infrastructure means that central banks and system participants have a common interest in acting together to address the evolving risks. Let me identify some of the major priorities we see in this area that require further collaboration. Higher standards for the core of the system During the past few years, central banks and securities commissioners have developed new standards for the design, operation, and oversight of payments and securities settlement systems. These new standards have been proposed for incorporation in the Federal Reserve’s Policy Statement on Payments System Risks. We are in the process of working, together with other U.S. supervisory and regulatory agencies, to assess the extent to which the affected U.S. systems meet these new standards. We feel that it is especially important for the entities that form the heart of payments and settlement systems to work toward higher standards for safety and soundness and operational resilience. Given the increased scale of activity handled by these entities, the greater concentration among the major participants, and the increased exposure to cross-border activity, these systems today need to meet a more exacting set of standards, and of course this is also true for entities that are less systemically important. More specifically, we would like to see a greater focus on strengthening risk management practices and ensuring that the financial resources of system operators are adequate to deal with the risks to which they are exposed.

In this context, we welcome the work underway in the private sector to develop better arrangements for the more efficient use of collateral globally including greater cross-border pledging of securities that can help meet liquidity needs, in normal times and in conditions of stress. Central banks have a range of options to help meet exceptional liquidity needs, and we have demonstrated that we have the capacity to move very quickly in extremis. But we think the banking community, securities depositories and global custodians can do a lot to take advantage of new technology to put in place stronger market arrangements to meet these needs. Conclusion Let me conclude by emphasizing once again our shared interest in ensuring that our payments infrastructure meets the highest standards for safety and soundness and operational resilience. The design of payments systems is the product of different perspectives on how to balance the ideal with the practical. This balance needs to be revisited over time. The global financial system we live in today is a very different system than the present network of national systems was designed to support. Technological advances provide us with a new set of tools to make what may seem optimal from a systemic perspective more practical. We will continue to work closely with the private sector in designing effective ways to deal with the full range of new challenges from increased financial integration and increased concentration, greater complexity, and new threats to operational security and continuity.
Tharman Shanmugaratnam: Challenges and opportunities for the insurance industry Address by Mr Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore, at the International Insurance Society Global Insurance Forum, Singapore, 13 June 2016. *  *  *  Mr Michael Morrissey, President & CEO, International Insurance Society Distinguished delegates 1. Let me first say how pleased we at the MAS are that you have chosen to hold your meeting in Singapore. We are especially humbled by your decision to host the meeting in Singapore in rotation with New York and London, henceforth, so that we meet in Asia, in Singapore, once every three years. 2. It’s a challenging time for the insurance industry, and more broadly, for everyone involved in the business of providing assurance in retirement. But it’s also a time of opportunity, especially in Asia, where the opportunities for insurance are multiplying. I’ll talk a little about the challenges the industry faces before highlighting some opportunities. Ensuring retirement security 3. The challenges come about for reasons that go well beyond the cyclical forces. We are faced with structural trends around the world, that are making the business of insurance and pension funds and everyone concerned with retirement security more difficult. 4. The principle challenge lies in the combination of meeting the needs of societies getting older and living for longer and an environment of low interest rates. 5.

This is a normal ‘life cycle’ allocation of assets, where people entering retirement seek to reduce the risk in their investments, and aim for some stability in income. This coming shift in asset allocation towards bonds over the medium to long term is itself expected to add to the downward pressure on interest rates. 10. And low interest rates are themselves leading to increases in savings rates, particular among older people. It is debated between economists: whether low interest rates lead to  BIS central bankers’ speeches  1  higher or lower savings. But we are seeing how in some countries, older people responding to low interest rates not by going out and spending more, but by saving more so as to be able to assure themselves of a the level of income that they desire in retirement. 11. So we are in a situation where there are self-reinforcing forces. People are getting older, they expect to live for longer, they are saving more and they are allocating more of their funds to bonds. Interest rates remaining low as a result. Older people saving more as a result of low interest rates. The structural gap between savings and investment remains, in turn keeping interest rates low. A self-reinforcing cycle that we are going to have to live with for some time to come. 12. There is a second major factor that adds to this, which is the slowdown in the underlying growth of economies around the world.
Technology may be set to change jobs and wages more fundamentally than in the past. Job displacement and creation may come thicker and faster than ever previously. “Hollowing out” may become more pervasive. And gaps between those with and without skills, or with and without jobs, may widen as never before. Or that, at least, is the picture some have painted. These issues have fundamental implications for the functioning of industries and economies and the well-being of families and societies. They also, of course, have fundamental implications for the TUC and for policymakers like me. So after reviewing labour market developments, historically and prospectively, I want to conclude with some reflections on policy, including monetary policy. Good news, bad news Let me start with a review of recent developments in the labour market. There is plenty of good news to report here, with a boom in jobs and, to a lesser extent, wages in the UK. Yesterday’s labour market data confirmed that picture. But there are also strong crosscurrents at work, often rooted in longer-term structural shifts in the labour market, which offer a more worrying window on the world of work. •  In the immediate aftermath of the global financial crisis, there were understandable fears that unemployment would rise rapidly. At the start of 2009, the Monetary Policy Committee (MPC) was forecasting that the UK unemployment rate would rise into double figures, equivalent to over the 3.4 million people.

The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market if necessary are intended to ease pressure on the Swiss franc. Negative interest does so by at least partially restoring the traditional interest rate differential against other countries. What effect does our willingness to intervene in the foreign exchange market have? With our foreign currency purchases, we supply the market with additional Swiss francs when demand for our currency is particularly strong. Without the negative Page 3/10  interest rate and our willingness to intervene, the Swiss franc would be even stronger, inflation would fall once again, and unemployment would rise. We will continue to make the most of our monetary policy latitude in the future. If necessary, we can lower the negative interest rate further or buy additional foreign currency. Of course, careful consideration always precedes any decision we make, based on the maxim that the expected benefit of a monetary policy measure must outweigh the associated costs. Over the past financial year, the implementation of our monetary policy has led us to make foreign currency purchases totalling some CHF 67 billion. With valuation changes as well as interest and dividend income, the SNB’s foreign exchange reserves increased by CHF 86 billion in 2016 (cf. chart 5). The current size of our balance sheet reflects our crisis management over the last ten years. What does this expansion of the balance sheet mean for our investment policy? Let’s look at this more closely now in the second part of my speech.
William C Dudley: The competitiveness of Puerto Rico’s economy – reducing the cost of doing business and improving labor market opportunities Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York and Chairman of the Committee on the Global Financial System (CGFS), before the Puerto Rico Chamber of Commerce Annual Convention, Fajardo, Puerto Rico, 29 June 2012. *  *  *  Good morning and greetings from New York City. I sincerely thank the Chamber for giving me the opportunity to address your annual meeting. Unfortunately I am unable to be in Puerto Rico in person, because I have a broken leg and am under doctor’s orders not to fly. The good news is that I am on the mend and that I have this opportunity to speak to you via video. We at the New York Fed are pleased that Puerto Rico is part of the Second Federal Reserve District that we represent in the Federal Reserve System. We are committed to the people of the Island and to its growth and prosperity. Our commitment is reflected in our ongoing work with our many partners on the Island. Last spring, with the Puerto Rico Chamber of Commerce and other local partners, we co-sponsored a forum aimed at helping small businesses in Puerto Rico learn about export opportunities. We have been involved with education on the Island for two decades, including by helping to set up the Alianza.

4  BIS Review 69/2007  Is there more to be done? Of course, but the challenge now is not so much the challenge of building stronger defenses against crisis, but rather the longer-term challenge of building a greater capacity to adapt to change in this increasingly integrated and rapidly evolving global economy. Thank you. BIS Review 69/2007  5
The value of this exercise is not only to confirm our strength, but also to help guide us to areas of improvement that can safeguard us against future challenges. You can expect more improvements in our supervisory system in the months and years ahead, especially after the new Financial Institutions Businesses Act is enacted. Ladies and gentlemen, The economy and the banking system have come a long way to reach this point, where we are able to remain resilient against many difficult challenges. Such ability, to a large extent, rests crucially on setting the right policies to safeguard economic and financial stability. For this, I have an excellent team of people with the knowledge and experience to help me deal effectively with the risks and the challenges. On the financial stability side, the team is headed by Dr. Bandid Nijathaworn, and on the monetary stability side, by Dr. Atchana Waiquamdee, both of whom are here with me today. And with the excellent cooperation from our colleagues in the financial sector, I am confident that the banking sector and the economy will continue to make solid and sustainable progress. In closing, I would like to express my sincere appreciation to all of you who have contributed to our progress through your frank and candid dealings with us; and the competition you have infused into the banking system that has benefited consumers and served the business community at large. Indeed, orderly market competition is the most potent economic force that fosters progress.

Employment has continued to grow and total hours worked exceed pre-pandemic levels. At the same time, the average number of hours worked remains somewhat below its pre-pandemic level and its recovery has stalled since mid-2022. As the energy crisis fades, governments should roll back the related support measures promptly and in a concerted manner to avoid driving up medium-term inflationary pressures, which would call for a stronger monetary policy response. Fiscal policies should be oriented towards making our economy more productive and gradually bringing down high public debt. Policies to enhance the euro area's supply capacity, especially in the energy sector, can also help reduce price pressures in the medium term. In this regard, we welcome the publication of the European Commission's legislative proposals for the reform of the EU's economic governance framework, which should be concluded soon. Inflation According to Eurostat's flash estimate, inflation was 7.0 per cent in April, after having dropped from 8.5 per cent in February to 6.9 per cent in March. While base effects led to some increase in energy price inflation, from -0.9 per cent in March to 2.5 per cent in April, the rate stands far below those recorded after the start of Russia's war against Ukraine. Food price inflation remains elevated, however, standing at 13.6 per cent in April, after 15.5 per cent in March. Price pressures remain strong. Inflation excluding energy and food was 5.6 per cent in April, having edged down slightly compared with March to return to its February level.
Having suffered from the reckless and unstable macroeconomic management together with inefficient supervision, the system deteriorated severely and faced a serious moral hazard problem. Dear participants, A closer look at the Turkish financial system would be helpful to characterize its weaknesses and structural problems during that period. First of all, because of the high public sector borrowing requirement, fiscal dominance increased considerably in the financial markets and led the public sector to crowd out the private sector. Hence, the relationship between the banking sector and real sector could not develop as it should have done. Instead, the relationship between the banking sector and the public sector strengthened year after year. Secondly, the banking sector as a whole failed to exercise good risk management in its credit allocation. Since financing the public sector budget deficits with high real interest rates was an easy way to make profits, banks did not pay much attention to basic principles of risk management, such as maturity and currency mismatches. Some banks also created considerable amount of connected-loans in their balance sheets. On the public banks side, more specifically, which had a high share in the overall sector, banks were heavily used to support government policies and credits were allocated inefficiently, which resulted in big losses and weakened their capital structure.

As historical evidence suggests, it is possible for financial imbalances to develop even in an environment of stable and low inflation. Therefore as the second implication, it is impossible to avoid crises without discipline in financial markets. Then it naturally follows that the risk management developed as a distinct banking discipline in the 1990s. New tools and methods to manage the market and credit risk were developed, and brought about a dramatic increase in the volume of capital movements in the financial sector and variety of instruments. Efficient supervision became the vital part of this internal discipline. I should also admit that, as financial engineering contributes to development of new and complex instruments, such instruments also create obstacles to supervisory authorities given their sophisticated structures. As a result, a long debate started among both academics and policy makers as to whether the objective of price stability or financial stability should take priority for a central bank. I do not want to take sides in this debate. We, central bankers, are responsible for providing a stable economic environment, in which the economy operates efficiently in the long run. And prerequisites for a stable economic environment are both price stability and financial stability. So, there is always a strong reason for keeping financial stability in the central banks’ reaction functions. Therefore, these two objectives are not in conflict in the long run, but are complementary to each other. Accordingly, financial stability has increasingly become an auxiliary objective of central banks to pursue.
Mario Draghi: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament Introductory statement by Mr Mario Draghi, President of the European Central Bank, before the Hearing at the Committee on Economic and Monetary Affairs of the European Parliament, Brussels, 26 February 2018. * * * Mr Chairman, Honourable Members of the Economic and Monetary Affairs Committee, Ladies and gentlemen, I am glad to be back at the European Parliament for my first hearing of this year before your Committee. The two issues you have chosen for today’s debate are very topical and I will address them in turn. I will first discuss the euro area inflation outlook and the main factors impacting on the relationship between growth and inflation. I will then emphasise the relevance of financial market infrastructures for monetary policy. In doing so, I will explain why the central bank of issue needs to have the necessary tools to address possible risks in a limited number of areas which are crucial from the perspective of its monetary policy mandate. Inflation, growth and the ECB’s monetary policy As I said in my introductory statement to the European Parliament plenary earlier this month, the euro area economy is expanding robustly. 1 Growth is stronger than previously expected and more evenly distributed across sectors and geographies than at any time since the financial crisis. According to the latest data, the euro area economy grew by 2.5% in 2017, reflecting strong domestic momentum in private consumption and investment.

In the description of the framework for the Riksbank’s monetary policy, which we published recently it says: “The Riksbank routinely takes into consideration changes in asset prices and other financial variables (exchange rates, house prices, share prices, household and corporate indebtedness, etc.) in monetary policy decisions. This should not be interpreted as introducing targets for different asset prices or other financial quantities. However, situations may arise where the consequences for the real economy and inflation of the development of different financial variables threaten to become very unfavourable and serious without it being possible for that reason to quantify or capture this type of risk in the normal analytical and forecasting work. This means that there are risks of sharp corrections in the future which in turn affect the real economy and inflation. It may be necessary to take these risks into account in monetary policy decisions in a different way than in the normal approach, where the forecasts for inflation and the real economy for the next two years serve as the foundation.” Although it is difficult to quantify the risks related to strong and long-term growth in asset prices and debts using normal methods, there is a fairly large flora of research into how different types of imperfections can cause and reinforce the types of imbalances I have discussed. One research area, for instance, is based on psychological factors being able to lead to expectations becoming an independent driving force behind fluctuations in the real economy.