samchain/econo-pairs-v1 huggingface dataset:
On the benefit side, the market would become more efficient if buyers and sellers of financial products are offered product choices that better fit their risk-return preferences. Nonetheless, there are important risks, and the subprime and CDO problem have brought this to light. In short, the current global turmoil is a sharp reminder of the danger of overestimating one’s own risk management ability. On the one hand, iconic investment banks, giant insurance firms, and market specialists such as rating agencies and bond insurers have, with hindsight, overestimated their ability to price  BIS Review 133/2008  1  and manage complex derivatives. On the other hand, regulatory frameworks also need to be strengthened to ensure that financial institutions have adequate capital and liquidity. Hence, there are calls for strengthening regulations, and I agree that there are many areas such as leveraging and capital requirements that needs to be strengthened. But, I also believe we would do well to approach this in a steady and thorough manner, as regulatory changes need to be considered carefully. Particularly, there needs to be domestic and international harmonization to avoid the sort of harmful arbitrage that has been associated with the current turmoil. Moreover, the current crisis also highlights the truly globalised nature of the financial market, as uncoordinated regulatory measures could cause major difficulty in crisis management. In short, we must ensure that regulations are truly risk-based and nondistortive, on both a domestic and international basis. This requires significant supervisory coordination going forward.

This is a question that has been much discussed in recent years, both between central banks and within the academic world, as house prices have risen rapidly in many countries, including Sweden. This debate could in itself be a subject for a speech, so let me just briefly mention that the Riksbank’s view is that we do not consider it reasonable to completely ignore these risks, although it is not possible to give consideration to the risks in any simple manner in the normal forecasting process. We have therefore acted to reduce these risks to some extent and to contribute to a smoother adjustment in indebtedness and house prices. The approach we have chosen has in practice only meant a fairly marginal change in the timing of our interest rate decisions. Neither household indebtedness, house prices, nor other asset prices have any significance for monetary policy in themselves, apart from their effects on inflation and the prospects for the macro economy. The inflation forecast and future interest rate developments As I mentioned earlier, our work procedures have changed and developed over time. This is natural. We have had new experiences and been given new conditions along the way. As recently as three days ago, we members of the Executive Board of the Riksbank decided to change the assumption for the policy rate on which we base our forecasts – this is a step in our work on improving the bases for our monetary policy decisions and our communication.
Meier, S. and Sprenger, C. (2008): Charging Myopically Ahead: Evidence on Present-Biased Preferences and Credit Card Borrowing. 10  Shefrin, H. (2012), Behavioral Finance in the Financial Crisis – Market Efficiency, Minsky, and Keynes, discussion paper available at www.russellsage.org/blog/new-research-crisis-and-regulation-financial-sector. 11  Thaler R., Sunstein C. (2008), Nudge – Improving Decisions about Health, Wealth, and Happiness, Yale University Press. 12  A “default” option or “no action required” option could substantially boost participation in pension plans as individuals do not actively have to decide whether or not to make a contribution to savings. However, it does not inhibit their individual freedom to choose, as they can still adjust their contributions. BIS central bankers’ speeches  5  O’Donoghue, R. (1999): Doing it now or later, American Economic Review, Vol. 89, No.1. Rajan R. (2010), Fault Lines, Princeton University Press. Reinhart, C. and Rogoff K. (2010), Growth in a Time of Debt, American Economic Review, American Economic Association, vol. 100(2). Schumpeter, J. (1934), The Theory of Economic Development, Duncker & Humblot, Leipzig. Trans. R. Opie (1934), Cambridge, MA: Harvard University Press. Shefrin, H. (2012), Behavioral Finance in the Financial Crisis – Market Efficiency, Minsky, and Keynes, discussion paper available at www.russellsage.org/blog/new-research-crisisand-regulation-financial-sector. Thaler, R. and Sunstein, C. (2008), Nudge – Improving Decisions about Health, Wealth, and Happiness, Yale University Press. Worldbank, World Development Indicators, FS.AST.PRVT.GD.ZS/countries/1W?display=graph. 6  http://data.worldbank.org/indicator/  BIS central bankers’ speeches

It is with the Bundesbank that we have developed most of the projects for the euro area, with which we organise conferences, and with which we cooperate in the international field. This cooperation is beneficial for both of us. Is it sad to leave at a time when central banks have become such important players? C.N. It is not good that we are seen as the only game in town. We cannot replace governments, simply because they are not seen to be acting quickly enough. We have created in the euro area many new institutions and new rules. They must now be used. It is up to the parliaments and governments to decide the reforms to be made, but they have to take their responsibilities. Mr Noyer, thank you for this interview. 4  BIS central bankers’ speeches
The other factor is that the already low interest rates around the world make it difficult for the central banks to cut their policy rates as far as would be needed to stimulate demand to the necessary extent. This was a problem that was much discussed even prior to the pandemic. For instance, I argued in a speech in 2016 that the situation we are in now, with an inflation rate that we don't expect to quite reach the target even at the end of the forecast period, was a possibility in the coming years.2 There was a similar debate in the United States, too, where the policy rate was significantly higher than in Sweden.3 I would like to make a brief digression about this, as it is essential to my continued reasoning. Low neutral rate hampers expansionary policy Interest rates in Sweden and abroad have thus reached historically low levels. This is essentially due to structural factors, which imply that globally there is a greater propensity to save than to invest.4 This in turn has meant that global real interest rates, that is, interest rates excluding inflation, have fallen in recent decades (see Figure 3). In addition, nominal interest rates around the world have also fallen due to many countries introducing inflation targeting. The nominal interest rate includes compensation for inflation.

This also has the potential of reducing delivery cost for the banks; hence the potential to increase profit maximization for both banks and their clients. Finally, let me thank the Board of Directors and Management of ProCredit Bank for inviting me to this occasion. I wish you every success in your operations as you compete to make your presence felt in the industry. I would also like to covey appreciation from the Governor, who is unavoidable absent on this occasion. I thank you all for your attention. 2  BIS Review 33/2008
Artificial intelligence is already being deployed to replicate human logic and judgment in specific applications. According to the OECD, 9% of jobs are at high risk of being replaced by automation, and a quarter of the workforce requires major re-skilling. Currently, only 42% of the workforce has the necessary skills to thrive in tech-rich landscapes. In Malaysia and like many other countries, technological advancements have reinvented many processes and displaced many functions in bank branches, forcing closure and rationalisation of operations. Automation will replace conventional labour as we know it, and this trend will go unabated. Tweaking our approach to globalisation The IMF has warned that global living standards will continue to fall, unless governments and businesses take measured efforts to put in place long-term solutions. The trends that I have mentioned, while highlighting the larger challenges that confront us, should not reverse our current path of progressing towards expanded but measured globalisation. We must emphasise the benefits of globalisation to counter populist sentiment, while actively assisting those negatively impacted to make the necessary adjustments. It is from this perspective that the 2/5  BIS central bankers' speeches  solution is not to turn our backs on globalisation, closing borders and cut ties, or to withdraw from international trade or financial agreements and commitments. It is from this perspective that research has the potential to advance the current conversation on global solutions. As we re-evaluate our path of policymaking, there must be heightened focus on evidence-based research and greater room for experience-based policymaking.

Muhammad bin Ibrahim: Link between financial education, consumer protection and financing inclusion Closing remarks by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Malaysia-OECD High Level Global Symposium on Financial Well-Being, Kuala Lumpur, 1 October 2015. *  *  *  As this year’s Global Symposium on Financial Well-Being comes to a close, I thought it is appropriate to contemplate the world surrounding us. I want to make a short remark on the link between financial education, consumer protection and financing inclusion. Financial education, consumer protection and financial inclusion is a tractable endeavor if we work in a collaborative manner. They are means to a noble end. Properly synchronized it would create a sustainable growth and financial stability, a prerequisite to continuously improve people’s lives. For the full promise of financial inclusion to be realised, financial education is a powerful tool to equip consumers with the financial competence to manage their finances more effectively and improve the overall well-being of individuals and households. It also means that financial education must enable consumers to liberate themselves by equipping them with the ability to make informed decisions thus ensuring their meaningful participation in the financial system.
The contribution from firm dynamic processes to aggregate labour productivity growth and innovation also plays a major role, in particular in high-tech industries. All in all, an entrepreneurial-friendly economic environment would imply less red tape for small and medium-sized enterprises to help them develop at home and across borders, as well as positive action to ease access to the finance they need. And Europe is significantly lagging behind in this field. For instance, venture capital financing in Europe remains only a fraction of what it is in the US relative to the size of their economies. Second, promoting R&D investment is also a major issue. While many Member States expect to increase their R&D spending, Europe will fall short of the 2010 overall EU target of achieving 3% of GDP. In 2005 R&D investment relative to GDP was 1.9% in the euro area compared to 2.7% in the US. The efforts of European countries to increase R&D investment are still insufficient. Particular attention should be paid to increase public R&D spending efficiency and more attractive conditions for technology-intensive markets should be created. This includes for instance a better use of public procurement and a more innovation-friendly regulation. The European Commission estimated that an increase in the share of R&D expenditures in GDP from 1.9% in 2004 to 3% by 2010 would result in an increase of 1.7% in the level of GDP by 2010.

Jean-Claude Trichet: How can we increase growth potential in Europe? Speech by Jean-Claude Trichet, President of the European Central Bank, at the Suomi Areena 2007, Pori, Finland, 20 July 2007. *  *  *  Dear Governor Liikanen, I would first like to thank you very warmly for inviting me on the occasion of the “Suomi Areena 2007” event. It is a pleasure and a honour to be here today and to share with you my views on “How can we increase growth potential in Europe”. In light of the partly disappointing euro area economic performance in the past, it is a major policy issue. By contrast, the impressive performance of the Finnish economy, with output and productivity growth over the second half of the 1990s among the highest in the European countries, [Real GDP and hourly labour productivity grew on average by 3.8% and 2.7% respectively between 1996 and 2006], offers a good illustration of what could be done to increase growth potential in Europe. The transformation of the Finnish economy over the last decades represents one of the examples of the “knowledge based-economy” taking hold in Europe. Against this background, I will first review the past economic growth performance of the euro area in comparison to the US and focus on some of the underlying factors of potential output growth. Then I will elaborate on the reforms which I consider essential to increase the potential growth rate of Europe.
Second, traditional “micro” prudential regulation which aims to limit the distress of individual financial institutions is not enough to ensure that the financial system as a whole will be able to cope with large systemic shocks. There is the need for regulation that takes care of interactions between financial institutions, markets, and the real economy. The latter is known as macroprudential policy, a new buzzword that you may have heard of or will be hearing increasingly more often in the future. 1  Unlike price stability which refers to low and stable inflation, there is no universal definition of financial stability. One commonly used definition of financial stability is a situation in which the financial system is robust to shock and the stable provision of various financial intermediation services to the wider economy is ensured. BIS Review 96/2010  1  The third policy rethinking concerns the separation of banking regulation and supervision from central banks. Before the crisis, an increasing number of countries had adopted a model where a central bank only takes care of monetary policy and a separate independent authority takes care of regulation and supervision of financial institutions. That model, which promises superior performance in terms of financial stability maintenance, is now in question. Let me elaborate on these three issues in a bit more detail.

This means that, we will be able to take care of systemically important financial firms outside current regulatory purview if the situation warrants. Ladies and Gentleman, Lastly, let me share with you what I see as major challenges for the maintenance of financial stability in Thailand. While we may have a head start over many countries, we are not in anyway complacent. In particular, three important challenges loom on the horizon. First, the global economy, while doing much better than a year ago, still have many vulnerabilities which could give rise to the next round of global financial instability. Most importantly, the public debt problems in certain European countries constitute a major risk factor. At the other end of the spectrum, the growth and interest rate disparity between Asia and advanced economies amidst the still abundant global liquidity from the unprecedented monetary policy stimulus around the world could attract de-stabilizing capital inflows that will put pressure on exchange rate, encourage a buildup of financial institutions’ short-term debt, and fuel bubbles in various sectors. Second, in light of the possible buildups of financial imbalances, there is a need to further enhance the ability to identify potential threats early on. For example, at least in its early phase, bubbles are almost always associated with favourable economic fundamentals. Effective monitoring of bubbles therefore calls for better data collection, market intelligence, and risk analysis. While timely bubble identification remains very difficult, the good news is that better identification techniques are being developed and will continue to improve.
This has raised questions on whether in fact regional financial integration is important, given that the lack of it has not been an inhibiting factor to economic integration. ASEAN economies, however, have now reached that stage of development in this decade whereby greater regional financial integration will raise further our growth potential. An important key to unlocking our full potential is to accelerate this integration and cooperation within the ASEAN region. Main benefits of financial integration An intensification of financial integration in ASEAN will not only serve to enhance growth at the national level, but also act as a catalyst to achieve a growth that is mutually reinforcing  BIS central bankers’ speeches  1  for the economies in the region. Regional financial integration will bring about the more effective intermediation of funds and thus the efficient allocation of resources in the region. Excess savings in one country can be channeled into productive investments in another country within the region, thereby promoting growth. The ASEAN region has one of the highest savings rate in the world, at approximately 30%, as well as international reserves amounting to USD800 billion. The bulk of ASEAN’s surplus funds, however, are intermediated mainly through the international financial markets before being reinvested back into the region. In particular, more than 90% of cross-border portfolio investment flows are channeled to the advanced economies.

Given the immense funding requirements that ASEAN has, particularly for large investment projects and infrastructure development, greater financial integration will facilitate channeling part of the region’s surplus funds towards productive investment opportunities in the region. Regional financial integration will also allow for more efficient risk diversification of assets to include foreign assets from within the region. This will not only reduce vulnerability to external developments but will contribute to achieving more stable conditions in the regional financial markets. Additionally, this trend has been reinforced by greater coordination and cooperation among the regional Central Banks and regulatory authorities to safeguard financial stability. The collective actions that have been taken have enhanced the ability to manage and respond to risks confronting the region. Greater financial integration has also created an enabling environment for businesses. It has facilitated improved access to financing investments in the region. In particular, the presence of larger and increasingly more viable financial institutions in the region along with more developed financial markets have generated greater cross-border funding possibilities in the region and has allowed for more funding options for businesses. Further work in this direction is underway and significant progress on this front is expected to occur in this next decade. Key distinguishing features of ASEAN’s model of integration While ASEAN may draw on the experience from the European model of monetary and financial integration, the region has charted its own path towards greater financial integration.
SNB fact sheet “Implementing the countercyclical capital buffer in Switzerland: concretising the Swiss National Bank’s role.”  4  BIS central bankers’ speeches  still present. The CCB is a key element in the package of measures recently approved by the Federal Council. These measures should help to mitigate the risks to financial stability from imbalances developing in the real estate and mortgage market. The CCB enables the authorities to temporarily raise capital requirements in the banking system, as imbalances in the credit market develop. It serves two purposes, strengthening the resilience of the banking system by increasing its loss absorbing capacity and helping to lean against the build-up of excesses. It is a very flexible instrument and may be activated for specific sectors of the credit market only. Let me at this point also stress two – in my view – important principles in the context of rules and regulation. First, authorities should define the framework for the financial system, but they should not propagate a specific business model for the industry. That means it is up to companies and individuals to take business decisions, to choose the most promising business model and to adapt to the changing environment. Second, we have to acknowledge that it is very difficult for banks to do business without a predictable set of rules and related interpretations. In this regard, after a period of rapid changes, we should aim for a stable banking regulation framework at both the national and the international level.

First is Mainland authorities’ efforts to connect the interbank and exchange bond markets, which will allow participants in each market to access securities in the other market through an infrastructure connection without having to open separate accounts. This should ultimately be beneficial to the growth of both the CIBM and exchange bond markets, thus creating a bigger pie. 15. Foreign investors who access the interbank market through Bond Connect or CIBM Direct will be able to trade in the exchange market, which is the platform where most non-financial corporate bonds are lodged. The construction of the system linkage between the onshore infrastructure institutions is under way. Upon completion, the HKMA’s Central Moneymarkets Unit will explore with the Mainland side on the system enhancements required for Bond Connect investors to participate in the exchange bond market. 16. This development moves closer to having a single access point to the onshore bond market and will further open up access to the fast-growing credit bond market which remains relatively untapped by international investors. This presents an opportunity for investors to look further along the credit curve for diversification and yield. Relatedly, the entry of foreign firms into the onshore credit rating business is expected to facilitate this process, speed up the convergence of local and global ratings standards, and enhance foreign investors’ analysis of corporate credit. 17. Secondly, Mainland and Hong Kong stock exchanges have reached an agreement to include eligible ETFs in the Stock Connect scheme and technical preparations are under way.