samchain/econo-pairs-v1 huggingface dataset:
Securing success for the FX Global Code Speech given by Chris Salmon, Executive Director, Markets, Bank of England  TradeTech FX Europe, Barcelona Tuesday 12 September 2017  I would like to thank Tom Horn and Chris Cox for their help in preparing these remarks. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Good morning, I am delighted to be here at TradeTech FX Europe. Central banks have a deep and enduring interest in the effective functioning of markets. We sit at the heart of our financial systems, supporting their smooth running through our operations, and in turn relying on them ourselves in fulfilling our mandates. Our desire to promote effective financial markets manifests itself in many ways but we often act in a convening role – working together with the private sector to achieve the right outcome for the system as a whole. This has been enduring feature of the Bank of England’s activities, stretching back to some of our earliest efforts in the 1800s to marshal the resources of the City to rescue failing banks. Collective central bank action has long been a feature too; for example, CLS – which many you in the audience today rely on to eliminate foreign exchange settlement risk – was created at the encouragement of central bankers. 1  More recently, central banks have come together to address the systemic risks created by conduct issues within large swathes of wholesale financial markets.

It is important, however, that the fundamental cause of the unemployment is discussed seriously and that the calls for change are directed at those who actually have the power to carry out the required changes. All factual criticism of the Riksbank’s forecasts is good, but there’s a risk of concentrating the debate on our interest rate decisions and of the Riksbank’s deviations from the inflation target, the effects of which are transitory and even themselves out over time, overshadowing other, much more important factors that really can affect employment in the long run. We risk forgetting the much more powerful tools that other decision-makers, outside the Riksbank, have at their disposal to influence employment. What is relevant is not why unemployment is 5.8 per cent instead of 5.0 per cent but rather why it is not 4 per cent or even lower on average over an economic cycle. Equally important is why the employment rate has continued to drop in Sweden since the 1980s. In my opinion, measures must be taken to enhance the functioning of the labour market. The demands are increasing in line with the global trends that we’ve seen in recent years in the shape of outsourcing and technological progress. I have never believed that the shift in regime to a low-inflation policy would make it impossible to return to full employment according to the old norm even in the long run.
As such they are to be welcomed. However, if not fully understood at the micro level and not fully taken into consideration at a macro level, they may imply some unexpected adverse implications in terms of market dynamics. 1.3. Several avenues are being explored to mitigate financial instability  Strengthening the continuing efforts aiming at market transparency is one of the main avenue for future action. Experience shows that uncertainty and incomplete information are determining factors in mimetic behaviour. One of the objectives of transparency is to better differentiate borrower creditworthiness. A key feature of mimetic behaviour is that all borrowers are ‘tarred with the same brush’. So when one firm or one business sector face difficulties, neighbouring businesses or sectors are treated in the same way regardless of their actual economic and financial situation. The same may apply between emerging market economies as we shall see later. A careful examination of financial supervision rules and regulation, accounting standards, codes of good conducts, market practices and financial engineering seems also necessary to better understand their possible impact on market dynamics. There is a major public interest in trying to identify the elements that are pro-cyclical and those which are anti-cyclical. Financial authorities and market participants should commit to mitigate progressively, or possibly suppress, those elements of standards, regulations or financial techniques that are strongly pro-cyclical and, in the meantime, to reinforce the elements that could potentially counter the boom-bust tendencies.

Jean-Claude Trichet: The international financial architecture Speech by Mr Jean-Claude Trichet, Governor of the Bank of France, to the Foreign Policy Association, New York, 30 September 2002. *  *  *  I am delighted to be here in this great city, speaking to this prestigious association. Let me start by paying tribute to the Foreign Policy Association and to its contribution to the international debate with immense experience. Let me also say how Banque de France feels very close to the New Yorkers one year after the tragic events of September 11. As the French daily “Le Monde” rightly emphasised: “We are all Americans”. I am just coming back from the international monetary and financial meetings which take place every year in Washington. I am lucidly and cautiously confident that we will overcome present difficulties. And in my view there is no room either for undue pessimism or for any kind of complacency. What has happened during the recent period of time? Some financial markets have experienced sharp corrections and several large corporate firms have failed or been confronted with significant difficulties; meanwhile, a few major emerging market economies have got into deep financial troubles. However, financial systems have been so far resilient and the economic recovery is underway, although more slowly than first anticipated.
Is there a risk to budgetary independence that might emerge if the Federal Reserve did not remit any income to the Treasury for a considerable period of time? My response here is that we should take a long-term perspective when we assess the potential fiscal costs associated with the Federal Reserve’s enlarged balance sheet. The fact is that the Fed’s reimbursements to the U.S. Treasury have been around $ billion per year in recent years, far higher than the $ to 30 billion range that applied before the financial crisis. Under most scenarios, the Federal Reserve’s total remittances to the Treasury will be larger than they would have otherwise been in the absence of the asset purchase and maturity extension programs. More importantly, the Fed’s cumulative earnings understate the fiscal implications of the Federal Reserve’s actions. To the extent that the asset purchases have resulted in easier financial conditions that have promoted stronger economic activity, this in turn has had a positive fiscal consequence for the U.S. government. In addition, the Fed’s asset purchase programs have pushed longer-term interest rates below what they would otherwise have been, reducing the overall funding expenses of the U.S. Treasury. Once we take into account the broader fiscal consequences of the unconventional monetary policies put in place by the Fed, they are quite likely to cumulatively have an overall positive impact on the government budget. As a result, the use of unconventional monetary policy tools should pose no significant threat to the Fed’s independence.

First, the potential for this outcome is mitigated by the fact that the Federal Reserve has considerable non-interest bearing liabilities on its balance sheet – namely currency. These liabilities incur no interest expense regardless of the stance  2  While I have categorized providing a forecast for the future path of the policy rate as a form of unconventional monetary policy, this may be a misnomer in that some central banks use this form of forward guidance as part of their standard communication strategy, and the Federal Reserve may choose to continue to provide this form of forward guidance even after its policy rate is no longer constrained by the zero lower bound. 2  BIS central bankers’ speeches  of monetary policy. This means that short-term interest rates have to rise appreciably before the Federal Reserve’s net interest margin turns negative. Second, even if the Federal Reserve were to incur an operating loss either because of an increase in interest expense or because of realized losses on asset sales, the Federal Reserve can create a deferred asset on its balance sheet, obviating the need for funding from the Treasury to the Federal Reserve. In this sense, the Federal Reserve would retain its budgetary independence. In the case where the Fed recognizes a deferred asset, its remittances to the Treasury would cease until that deferred asset was paid down.
The difficulties that may arise, not only when reforming but also in opening the debate, may lead some to ask why, without reforms and, in particular, without modifying our labour market institutions, Spain won’t be able to grow as in the past. From what I’ve said already you can imagine my reply. It is possible that Spain may be able to grow as in the past, but it is highly unlikely. And I say that it is possible solely because, following the general failure of most of the forecasts that have been made during the current crisis, we should all be more humble when postulating about the future. Honestly, though, it is more difficult to imagine today how, without reforms, the Spanish economy can perform as favourably in the future as it has done  6  BIS Review 18/2009  in the last few decades. Moreover, what do we gain by refusing to learn from others about what can reduce the rate of unemployment and raise labour productivity and real wages? Even if our economy can grow again as it has in the past, with low productivity and with higher unemployment and lower wages than our neighbours, that would not seem to be preferable to the strategies for growth that they apply. Allow me one final consideration on an argument occasionally deployed, when there are no other arguments left, for not adopting structural measures.

However, on receiving your much appreciated invitation, I thought I’d take advantage of the sense of calm reflection which university fora instil to pause and ponder on what may happen to the Spanish economy after the crisis, when the global economy recovers. It is worth reflecting on the aftermath because the global nature of the crisis is "homogenising" the different economies. And by blurring the differences from one economy to another, it is hard to discern the different tasks awaiting them. As the crisis left nobody unscathed, not even those countries which acted prudently, i.e. those that did not incur excessive debt or whose competitiveness did not worsen, are faring better than those which were not so virtuous. But when the crisis ends, differences will re-emerge. When a plane taking off from New York almost crashed last month, the health and well-being of all the passengers hinged on how the crisis was resolved, without this depending on their youth, cholesterol levels, excess weight or the state of their lungs. The drama was the same for everybody. Luckily, they all emerged safe and sound from the landing on the Hudson. But after that, with the crisis behind, their health and well-being depends once again on the state of their organs, diet and exercise, and on taking the right medicine. Countries worldwide have entered into a similar negative spiral (a deep slowdown in – and in some cases the collapse of – consumption, employment, output, credit, investment...).
With the introduction of the Stock and Bond Connects, the cross-boundary infrastructure linkages between the clearing houses of the two markets have become the critical foundation on which cross-boundary transactions can be efficiently cleared and settled. The Central Moneymarkets Unit (CMU) operated by the HKMA is now linked to the Mainland central securities depositories (CSDs) on the one hand and the international CSDs (ICSDs) on the other. We have embarked on a multi-year enhancement programme to modernise the system to enable CMU to perform all functions required of an ICSD. Operating window will be expanded; a wider spectrum of corporate action services will be offered; and the system will enable the CMU to directly provide collateralised lending and FX services to nonbank participants. 19. Apart from these three factors, i.e. liquidity, product and infrastructure, which are essential to building a vibrant RMB offshore market in Hong Kong, I should add that supervisory collaboration is also important in this gradual opening-up process. Many of the initiatives to promote the international use of RMB will involve the opening up of the Mainland’s capital accounts. This must be done in a gradual and risk-controlled manner, which is why you often see quota and eligibility criteria in the initial stage of the Connect schemes. This kind of risk-control features requires the close collaboration between the HKMA and our Mainland counterparts. Through such collaboration, we seek to ensure that Hong Kong is a safe and reliable platform to take forward these new cross-boundary initiatives. 20.

At the central bank level, the HKMA has a swap arrangement with the PBoC, which is the largest in size globally. This swap line could serve as an effective back-stop liquidity facility to support the development of our RMB offshore market. 14. But more liquidity is just part of the equation. We also need more products to put the liquidity to productive use. This brings me to the second factor to build markets, which is products. We need to develop more RMB-denominated products in our equity, bond and wealth markets. 15. The continuous enhancement of the Connect schemes will help create this product diversity. For example, by opening up the new Southbound channel of the Bond Connect, we will expand the investor base of our bond market, which will in turn attract more liquidity in secondary trading as well as more primary issuance activities. And this will help reinforce the growth of our dim sum bond market in depth and diversity. Similarly, we are hopeful that the launch of the Wealth Management Connect will create room for more innovation in wealth management products, including those denominated in RMB which, according to some surveys, are favoured by potential Mainland customers. 16. What about equity products? Together with other regulators, we are now studying market proposals about enlarging the use of RMB in our stock market trading.
Richard W Fisher: The Texas Jagannatha (with reference to Indian Prime Minister Modi, a Hindu Goddess and Wodehouse’s Big Money) Remarks by Mr Richard W Fisher, President and Chief Executive Officer of the Federal Reserve Bank of Dallas, before the US-India Chamber of Commerce, Dallas, Texas, 4 September 2014. *  *  *  The views expressed by the author do not necessarily reflect official positions of the Federal Reserve System. Thank you, Ashok (Mago). I am so honored to have been invited to join Ambassador (S.) Jaishankar this evening to celebrate the U.S.-India Chamber of Commerce and its many distinguished awardees. Mr. Ambassador, I am delighted you are here in Texas tonight. I am going to give you a few statistics in a moment that I think will make readily apparent the reason for this large audience and why so many Indian entrepreneurs and professionals come to Texas. Then I am going to give you a snapshot of where the U.S. economy is at present and what we are grappling with at the Fed. But first, with your indulgence, I want to briefly speak of the relationship between our two great countries, India and the United States. Time to enhance the U.S.-India working relationship The logic of an enhanced strategic relationship between my country and yours is crystal clear, beginning with a harsh geopolitical reality: You live in a tough neighborhood and need us; we, in turn, need all the friends we can muster in your geographic sphere.

2/3  BIS central bankers' speeches  I mentioned earlier that we also need to reform incentives in order to encourage people to speak up. This is hard. I’ll share with you some of the change we have made at the New York Fed, recognizing that we do not have a monopoly on good ideas, nor can we claim to have a perfect culture. Skip-level meetings are common, and occur for the purpose of providing forums for sharing ideas. They are also a signal that escalation of problems matters to us. We offer training for new employees that emphasizes the importance of cognitive diversity and speaking up. We evaluate employees on their level of engagement with colleagues and their willingness to share insights. So, part of getting promoted is contributing diverse views and raising your hand. We have created programs to encourage peer recognition of good ideas, including backing for actionable initiatives selected by staff. This resulted, for example, in ideas like a “share your story” series to create institutional memory of past experiences and lessons learned. None of these ideas is a panacea. And, I know that we have not yet achieved our goal: a culture in which employees perceive that, by raising their hands and challenging what may be an orthodoxy or conventional wisdom, they are contributing to the mission of the New York Fed. I hope, however, that with the right incentives and good leadership models, we can move closer to that ideal state: an organization characterized by fresh ideas and open dialogue.
Ladies and gentlemen, to some, it would not be a surprise to note that the seminar comes shortly after the first anniversary of the collapse of Lehman Brothers, one of the first banks to fail in a series of cascading defaults of major international banks, which precipitated the onset of the current global financial crisis and the resultant worldwide economic recession. The case of Lehman Brothers is just one of the many that highlights apparent weaknesses in the global regulatory and supervisory environment. To this end, market practitioners and academics are still analysing and discussing the causes, prudential supervision frameworks, problem bank resolutions and strategies to avoid future systemic challenges. As the current global financial crisis has demonstrated, critical deficiencies still remain in risk management systems. Areas in need of critical enhancements include identifying key risks both within and across borders; assessing these risks, including stress testing and macroprudential analysis to determine the impact on the financial system; monitoring, developing coordination protocols, reviewing the regulatory frameworks, adopting appropriate risk management frameworks and adopting international accounting standards. While these structural deficiencies are not new, the current crisis has brought them to the fore. The speed at which the crisis has spread across the globe indicates that the development of coherent and rigorous frameworks for maintaining financial stability came too late for several countries, leading to adhoc and inconsistent policy responses.

Caleb M Fundanga: Consolidated supervision Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Joint MEFMI-FSI Regional Seminar or on consolidated supervision, Lusaka, 19 October 2009. *  *  *  The Executive Director of MEFMI, Dr. Elias Ngalande The FSI, Senior Financial Sector Specialist, Mr Amarendra Mohan The Director, Financial Sector Management Programme of MEFMI, Mr Alphious Ncube Distinguished Resource Persons, Participants, Ladies and Gentlemen It is my honour and privilege to officiate at this regional seminar on Consolidated Supervision jointly organised by the Financial Sector Management Programme of MEFMI and the Financial Stability Institute of the Bank for International Settlements. May I also take this opportunity to welcome and thank our distinguished resource persons, for accepting invitations to come for this important seminar. It is my hope and trust that their participation will enrich the deliberations of this seminar. Before I delve into the intricacies of the seminar, I would like to applaud MEFMI, and the FSI for consistently working together in the region to upgrade the banking supervisory skills. I am reliably informed that at least once every two years, the two organisations organise a high level seminar on a topical issue. It is therefore befitting for me to commend the two institutions for the work well done.
Foreseeably, however, spending on unemployment benefits will fall by slightly more than 6% due to the projected stability in unemployment figures and to regulatory amendments to the benefits system. Note, however, that changes in expenditure on social security pensions in 2013 will be affected by the revision that should be made, taking into account the inflation rate recorded to November 2012. Since an increase of 3.5% is projected and the corresponding adjustment payment could be around 2.5%, that would represent an increase in spending of approximately € billion in 2012, which would be consolidated in 2013 and in future years. I should mention that, in the next budget, one of the most important agreements of the so-called Toledo Pact will finally be concluded, in connection with the separation of the system’s sources of financing: on one hand, contributory pensions will be financed exclusively by contributions; and, on the other, the non-contributory top-ups and non-contributory pensions will be financed by taxes. This separation, which began to be applied in 2002, will be completed in 2013: and this is good news for the proper functioning of the system as a whole and for its future. Public debt As I indicated above, from the beginning of the crisis in 2007 until the end of 2012, the ratio of our public debt – as defined in the Excessive Deficit Protocol – to GDP has increased by 50 pp. Undoubtedly, this is the highest increase over the shortest period in this ratio in Spain’s economic history.

The Federal Reserve is an active participant in international efforts regarding payment systems via the Committee on Payments and Markets Infrastructures (CPMI) at the BIS. The CMPI collects best practices and issues recommendations for managing payments, clearing, and settlement risk across financial market utilities. At present, a high-priority area of study for the CMPI is coordinating the development of 24/365 RTGS systems – like FedNow – globally. Innovation in cross-border settlements will reduce liquidity outlays and settlement risks, leading in turn to cheaper cross-border payments. The New York Innovation Center and Project Cedar In the remainder of my remarks, I'd like to focus on an example of ongoing innovation research that is currently underway at the Federal Reserve Bank of New York. To further enhance our ability to contribute to financial innovation globally, the New York Innovation Center, or NYIC, was established in 2021. The NYIC bridges the worlds of finance, technology, and innovation. Through technical research, experimentation, and prototyping, our team generates insights into high-value central-bank-related opportunities, enabling stakeholders and the central bank community to enhance the functioning of the global financial system. 3/5  BIS - Central bankers' speeches  Project Cedar is the inaugural project of the NYIC and represents the first stage of the NYIC's research efforts into CBDCs, the NYIC's biggest focus area in 2022. A goal of the NYIC is to progress CBDC research with an objective of defining a technical design for a CBDC addressing the wholesale market in the Federal Reserve context.