samchain/econo-pairs-v1 huggingface dataset:
Stefan Ingves: Flexible inflation targeting in theory and practice Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank, to the Swedish Economics, at the Swedish Economics Association, Stockholm, 12 May. *  *  *  Mikael Apel, Carl Andreas Claussen and Niklas Frykström have contributed to this speech. It is enjoyable, inspiring and a privilege to come here and speak at the Swedish Economics Association. It is one of the few occasions when I can take a break from current practical monetary policy and discuss issues of a more academic nature. I intend to take up some issues that I have been considering “on the side” for some time now. If I were to try to coin a title that summaries what I am going to talk about, it would probably be “the link between theory and practice in monetary policy”, and more specifically where I believe the boundaries are as to how close the links can be. I would like to point out that these are my personal reflections and not official Riksbank views. Monetary policy’s tasks in general terms… According to the Sveriges Riksbank Act, the objective of monetary policy is to maintain price stability. The Riksbank has specified this as a target for inflation – where the annual change in the consumer price index (CPI) is to be 2 per cent.

The standards issued by AAOIFI have contributed towards improved quality of financial statements and reporting methodology of Islamic financial institutions. AAOIFI has also issued standards on the role of the Shariah committee as well as the code of ethics that should govern the accountants and auditors of Islamic financial institutions. Efforts by AAOIFI have also accelerated the pace of transparency and corporate governance of Islamic financial institutions. Fourth, risk management framework Emphasis on improved corporate governance goes hand in hand with the need for improvements in risk management standards. Sound risk management practices will minimise adverse consequences faced by financial institutions during periods of uncertainty. Robust internal controls to provide qualitative standards are also necessary to complement the quantitative analysis of risk to provide a check and balance in the overall risk management practices. Effective risk management systems is central to supervisory efforts. The risk management system in Islamic institutions need to be able to address the unique characteristics and attributes associated with Islamic financing operations involving financial contracts and instruments which may give rise to other risks besides credit risk. The risk management infrastructure needs to be in place to facilitate the identification, measurement, monitoring and control of all inherent risks present in all the various types of financing so that the specific risks involved may be ‘unbundled’. The complexities of the respective risks in the Islamic financial instruments therefore need to be fully explored and quantified to provide for their effective assessment and management.
Instead, the stress tests were to allow MAS to determine how resilient the banks and insurers were to highly adverse scenarios. In this regard, the stress tests revealed that while financial institutions’ financial resources would be affected by lower asset values, rising credit costs and moderating earnings, they are generally resilient even under stress conditions. A second objective is to focus the financial institutions’ attention on managing their risks and safeguarding the robustness of their liquidity, earnings and capital so that they remain financially sound through the economic downturn. Second, we took steps to ensure well-functioning markets. Singapore’s interbank money markets did not experience the seizure that griped the LIBOR markets. However, the openness of our markets meant we could not be immune from the global dislocations. MAS reassured financial institutions that they would have access to $ and $ liquidity in three ways. We kept a higher level of liquidity in the banking system. We also expanded eligibility to the Standing Facility to all banks that participate in the MAS Electronic Payment System, MEPS+, allowing them to repurchase SGS for $ funds with the MAS. Finally, we entered into a $ billion swap arrangement with the US Federal Reserve. This arrangement has been extended to 1 February 2010. Third, measures were put in place to maintain confidence of investors in Singapore as an international financial centre.

This revision takes into account the recent developments in global commodity prices. 6  BIS Review 91/2009  Monetary policy In October last year, in light of the weak economic environment and easing inflationary pressures, MAS shifted to a 0% appreciation of the $ policy band. This was followed by a re-centring of the policy band to the prevailing level of the $ in April 2009, while keeping the 0% appreciation path. At this juncture, notwithstanding the sharp rebound in the economy in Q2 2009, growth remains below trend and inflationary pressures continue to be muted. We assess that the current policy stance remains appropriate to support the economic recovery and ensure medium-term price stability, which in turn underpins confidence in the Singapore dollar. Our next monetary policy review will take place as scheduled in October. Conclusion Going forward, it will be important for central banks and regulators around the world to remain vigilant and to continue addressing financial system risks as the markets remain fragile and uncertainty remains. Singapore is not insulated from pressures in other parts of the world. We need to understand the changes and anticipate how they would affect us in order to take the right actions. MAS will continue to build on our key pillars of having sound financial institutions, ensuring well functioning markets and maintaining confidence of investors. Building on such strong fundamentals and adapting to new challenges, we can ensure we emerge stronger. Thank you. BIS Review 91/2009  7
The decision-making process now evolves around decision-making by a committee rather than relying on individuals as in the past. In some of the committees, well-qualified individuals from outside the Bank of Thailand have been invited to be members. Between each committee, emphasis has been put on the ability to communicate and exchange information. The change in this decision making process has resulted in the implementation of policies based on collective decision-making, accuracy and up to date information, most importantly, the co-ordination between the committees has helped reduce policy inconsistency. On monetary policy, following the change to a floating exchange rate system, there was a need for a new monetary policy framework. On this issue, the Bank of Thailand believes that the Inflation Targeting framework, which is being used today, is very appropriate to the present conditions and is well suited for Thai economic and monetary structures. Keeping inflation at a low level is an important pre-condition in maintaining economic stability of the country in the long run. Most importantly, under this framework, the Bank of Thailand must set clear monetary policy targets, be transparent in its decision-making, and accountable for its policies. The Bank of Thailand Monetary Policy Board announces its decision every six weeks, and so far has published two Inflation Reports. At present, the new monetary policy framework has been accepted at a certain level. More importantly, for it to be highly successful and efficient, the Bank of Thailand must be independent in implementing its policies.

It is particularly difficult in instances where fluctuations in the exchange rate are amplified as a result of speculation, hedging and portfolio shifts in financial markets. 7) The Exchange Rate Regulation Norges Bank’s use of instruments in 1998 was in keeping with the Exchange Rate Regulation of 6 May 1994: “Section 1 The international value of the Norwegian krone is determined on the basis of exchange rates in the foreign exchange market. Section 2 The monetary policy to be conducted by Norges Bank shall be aimed at maintaining a stable krone exchange rate against European currencies, based on the range of the exchange rate BIS Review 10/1999  –7–  maintained since the krone was floated on 10 December 1992. In the event of significant changes in the exchange rate, monetary policy instruments will be oriented with a view to returning the exchange rate over time to its initial range. No fluctuation margins are established, nor is there an appurtenant obligation on Norges Bank to intervene in the foreign exchange market.” (My underlining) Pursuant to these guidelines, Norges Bank raised the deposit and overnight lending rate by 1 percentage point on 25 August. In connection with the increase in interest rates the Bank stated that instruments were subsequently to be oriented “with a view to returning the exchange rate over time to its initial range”. In the opinion of Norges Bank, the situation in the financial market was such that it would not be appropriate to make further use of its instruments.
Rates of infant mortality have fallen by th  8  40 percentage points since the end of the 18 century. The estimated lifespan of a human has risen by a 9  factor of over two. And estimated male skeleton heights have risen by 5-10cm. 10  Humans have grown,  financially and physiologically, in lockstep. The world has moved from a Malthusian Era to a Golden one. 5  Stiglitz, Sen and Fitoussi (2009). For example, Clark (2009). 7 Malthus (1798). 8 Our World In Data: https://ourworldindata.org/child-mortality 9 Our World In Data: https://ourworldindata.org/life-expectancy 10 Haldane (2015a). 6  3  All speeches are available online at www.bankofengland.co.uk/speeches  3  A Story with One “i”  What explains this extra-ordinary inflexion point in the history of economic growth and living standards? So fundamental is this question to so much of social and economic history that, understandably, it has attracted huge amounts of empirical, historical, social and theoretical research. Out of this cloud of evidence, a clear sunbeam of understanding has emerged about the deep causes and catalysts of economic growth. th  If you ask a schoolchild what happened in England around the middle of the 18 century, as I often do, many will give you the right answer. It marked the dawn of the Industrial Revolution. But what exactly was this a revolution in and what exactly caused it? In the standard account, the catalyst for this revolution in economic growth came from a single source, from one “i” - ideas.

I also consider that one should examine the possibility to increase the instruments at the disposal of central banks so that other measures than raising the policy rate can be taken when the risk of financial bubbles is assessed as high. However, it is necessary to analyse very carefully what the consequences of such an increase would be for conducting monetary policy before one takes a stand on this issue. Measures that influence credit granting and interest rate spreads in different ways have an impact on the transmission mechanism for the actual interest rate policy, which ultimately means that the impact of monetary policy on the economy may be different, at least initially. BIS Review 162/2009  5  Do reliable “bubble indicators” exist, and what alternative means to the repo rate are available? Let me spend the rest of the time discussing both the question of whether there are reliable indicators that can warn when financial bubbles are arising, and the question of what might be suitable tools, in addition to the interest rate, to use if the need arises. In connection with the first question it is relevant to also ask why indicators of financial bubbles, if these exist, are not used already and why the market would not be better at valuing the risks than central banks. There are studies which point to the existence of indicators which can – more or less – capture bubbles that the market has not corrected, for one reason or another.
In Europe, the Stoxx 600 lost around 9% over the same period. Various factors contributed to the weak performance of European stocks. Economic momentum has weakened of late and corporate earnings growth remained below expectations in the third quarter overall. Moreover, currency turmoil in Turkey and the budget dispute between Italy and the EU weighed on Europe’s stock exchanges. In Switzerland, the SMI has managed to gain around 1% since mid-year. This  Page 1/5  Berne, 13 December 2018 Andréa M. Maechler  News conference  above-average showing was predominantly due to a strong performance in July, which in turn was mainly driven by positive corporate news in the pharmaceutical sector. On the interest rate markets the picture initially remained mixed due to uneven growth momentum in the major economic regions since mid-2018 (cf. chart 3). In the US, the Federal Reserve confirmed that it intended to maintain its policy of gradual interest rate rises. Against this backdrop, yields in the US continued to rise and the yield on 10-year US Treasuries hit a multi-year high at the beginning of November. This rise in yields receded again in response to another dip in risk sentiment at the beginning of December. Most recently, the yield on 10-year US Treasuries stood at almost 2.9% – close to the level recorded at the end of June. In Europe, on the other hand, yields have been more stable. Yield differentials between US and European government bonds thus also reached a multi-year high in November.

Such reversals, abrupt or not, are bound to happen once better growth prospects in the advanced economies are confirmed. The upshot is that we are living in a world where disruptive tail events can be more of a frequent occurrence than was the case in the past. And third, while the forces underlying the current cycle of capital flows are global, policy response in emerging economies remains domestic-centric. This, I think, is an important point to note in the current capital flows episode. Also, because financial markets are more integrated, policy response in one country can have significant unintended consequences on other economies. In other words, we are living in a world where events and policies in a country can result in large spillover effects on other economies. BIS Review 141/2010  1  So, this is the new economic and financial context in which the flows are taking place and the policy responses are being shaped. Managing this will be a challenge, and effective policy response will require an integrated approach that combines flexible monetary and exchange regime, fiscal policy, capital account liberalization, and the use of macroprudential measures, in a coherent policy framework. Moreover, the policy response will need to be supported by structural reforms and policies to enhance the depth, the resilience, and the strength of the domestic financial system, as well as policies to promote a greater degree of product and labour market flexibility.
In other words, prosperity tomorrow can only be achieved by making sacrifices today. Even if this lesson is not fully taken on board, the need for continued fiscal prudence will ensure that choices between alternative uses of public funds will have to be made more frequently, and spending cuts made in sensitive areas. Such decisions would be taken much faster and more effectively if a bipartisan approach were adopted. Other countries in Europe have taken this road, but there are precedents in Malta too. The financial services legislation, for example, was adopted unanimously by Parliament. The impressive growth of the financial sector indeed testifies to what a bipartisan approach to strategic economic choices can achieve. The national consensus on the adoption of the euro is another example. It would greatly strengthen the economy’s capacity to benefit from membership of the euro area if this consensus were extended to a recognition of the need to increase the share of government revenue devoted to investment in the country’s future. Mr President, I make no claim to originality in voicing these concerns. In a recent letter to a local newspaper, a Mr V. Spiteri wrote, “Vague promises and assurances that if we vote for one side instead of the other we can retain free medical care, retire at 61, afford to eat out more often, take at least one holiday abroad and drive a new car, is a dream we would do well to wake up from”. How very true!

15  12  All speeches are available online at www.bankofengland.co.uk/speeches  12  While simple, these maps suggest there is important information on economies and societies to be found by peering through different lenses: lenses that operate at different resolutions, as the striking UK regional differences in income, wealth and health demonstrate;  and lenses that focus on different economic  attributes, as the striking differences between the UK’s regional income and well-being maps demonstrate. Chart 8: Cartogram of UK well-being  Sources: ONS Annual Population Survey (APS) and Bank calculations. Notes: Responses to the question, “overall, how satisfied are you with your life nowadays?” where 0 is ‘not at all satisfied’ and 10 is ‘completely satisfied’ for 2016/17. UK NUTS 1 regions re-sized and coloured by mean response. (b)  Differences within regions  Given these striking regional differences in health, wealth and happiness across the UK, an interesting supplementary question is how those differences compare within-regions. As we alter the resolution at which we view the economy, do these differences narrow? Do economic patterns look different when 13  All speeches are available online at www.bankofengland.co.uk/speeches  13  comparing them within and between regions? Or are these patterns self-similar at different resolutions, as when we use a microscope to study the shoreline? Chart 9 provides one visualisation of these patterns at different resolutions. These “violin” plots compare the distribution of income per head at the regional (NUTS 1) level with the distribution at NUTS 2 and NUTS 3 level.
The main contribution of the public sector to growth no longer comes through its expenditures, but through the role it undertakes as a strong supervisory and regulatory agent in the framework of good governance principles and also from its policies focusing on the goal of increasing competitiveness. The public sector’s need for borrowing from financial markets declined due to tight fiscal policies, which provided the private sector the opportunity to find lower-cost and longer term resources. Another change observed in growth dynamics in line with the structural transformation in the economy is that productivity increases have become the most significant factor in growth. The cumulative productivity increase in the private manufacturing industry for the period between 2001 and the first quarter of 2006 reached 35 percent. While the said productivity increases support the growth process on the one hand, they improve the quality and contribute to the sustainability of growth on the other. BIS Review 89/2006  7  The last issue I will touch on about growth factors has to do with the increased level of integration of the Turkish economy with the world. In this framework, exports, which rose by 151.5 percent cumulatively from 2001 to July 2006, made a critical contribution to the rapid growth observed for the last four years. Domestic and foreign competition, which increased due to the increased number of firms that took up export activities and entered international markets as a result of integration with the world, led to a decrease in profit margins in these sectors.

News conference  22 September 2022, 10.00 am  Introductory remarks by Andréa M. Maechler As Thomas Jordan has indicated, I will now discuss some important aspects of the implementation of our monetary policy in the money market. With today’s interest rate decision, we are bringing a period of a negative SNB policy rate to an end. To ensure that the secured short-term Swiss franc money market rates remain close to the SNB policy rate in a positive interest rate environment, we are adjusting our implementation approach. Our approach now consists of the following two elements. The first is a tiered remuneration of the sight deposits that banks and other financial market participants hold at the SNB. We remunerate sight deposits up to an individual threshold at the SNB policy rate. Sight deposits above this threshold are remunerated at an interest rate of zero percent. The individual thresholds are based on the calculation of exemption thresholds in a negative interest rate environment used to date. 1 The tiered remuneration of sight deposits creates an incentive for account holders to carry out money market transactions with each other even in a situation of liquidity surplus. These transactions contribute to a robust basis for the calculation of SARON. The second element is the absorption of liquidity by way of open market operations. With these operations, we reduce the sight deposits and thereby the liquidity supply in the money market.
Phase three will see the information sharing between participating banks when there is an update of customers' data for AML/Know Your Customer compliance purposes or when a new customer is onboarded and such person is already a customer of a participating bank. Finally, Phase four will deal with information sharing between participating banks for the purpose of account switching. The CBC is committed to make the project work as the benefits to all stakeholders and especially bank customers will be tangible in terms of cost and time savings. This will benefit the entire Cypriot economy including the banks themselves. Having said this, I wish to emphasise that digitisation on its own does not bring full efficiencies or solve the issues I mentioned earlier. The Association of Cyprus Banks and the CEOs and Chairmen of banks must make the necessary internal changes and training to make servicing of clients more efficient. Let me be clear, European banking regulations are the same across Europe. That's why they are called European. Hence differences on banking practices and efficiencies are because of banks' management and their practices. The Cyprus banking sector practice is less efficient than European counterparties. As I mentioned before, it's time for banks and stakeholders to act. In conclusion,  4/5  BIS - Central bankers' speeches  The world's economic system has been through a lot in recent years, from the challenge of the pandemic to the impact of the war in Ukraine.

Constantinos Herodotou: Central Bank Challenges in a world of growing uncertainties - the conduct of monetary policy and the evolution of traditional banking Speech by Mr Constantinos Herodotou, Governor of the Central Bank of Cyprus, at the ICPAC Mediterranean Finance Summit, Limassol, 5 May 2022. *** Dear guests, dear co-speakers, it is a pleasure to have the opportunity to speak to you here today. These days our thoughts are with those affected by the tragic events of the Russian invasion in Ukraine. Beyond the human loss, Russia's war against Ukraine has disrupted further the global supply chains and in effect growth and inflation patterns around the world and the euro area economy. Europe faces both supply disruptions and surging prices for commodities and raw materials, problems exacerbated by the region's dependency on Russian oil and gas. How the euro area economy performs will greatly depend on the magnitude and time length of the conflict, the side effects of current sanctions on the euro area and on possible further measures. I will first describe the current economic developments in the euro area as regards growth and inflation outlook and the ECB's monetary policy stance and challenges under the prevailing uncertain geopolitical situation. As the supply disruptions from the acute phase of the pandemic were easing, the war and the consequent sanctions imposed on Russia are causing a new negative shock that is weakening the pace of the post pandemic recovery, creating new supply-side bottlenecks and increasing inflationary pressures for longer.