samchain/econo-pairs-v1 huggingface dataset:
And compared with other regions, this diversity, though somewhat more persistent, has been on the same scale as the heterogeneity across the different US regions and states, being the United States an example of a monetary union of approximately the same size as the Euro zone, and whose viability is unquestioned. Nobody considers that these divergences would advise California to have a different currency from that of New York or Illinois. What's more, empirical evidence from EMU shows that national business cycles have, with economic and monetary integration, become more synchronised. Admittedly, though, growth and inflation differentials that we should reduce have persisted over this period. However, the solution to this problem should not be sought by questioning what the euro can do to reduce these differences. Rather, we should determine what we should do with other policies to narrow them. This is so since monetary policy can do nothing. The best way in which it can contribute to boosting growth, employment and welfare is to keep inflation anchored for the area as a whole. If, as I stated, we are convinced of the enormous advantages of the Euro, not only in the political sphere but also in economic and social terms, the question to ask is what governments and national parliaments should do to entrench the euro further. And it is here that many major tasks remain. The first, which was promptly identified, was to look after fiscal policy.

Miguel Fernández Ordóñez: A decade with the euro Speech by Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain, at the Conference “10th Anniversary of the entry of Spain into the EMU”, Bank of Spain, Madrid, 27 February 2009. *  *  *  Let me first welcome you and thank you for being here today at the Banco de España headquarters for this conference commemorating the tenth anniversary of the creation of the Economic and Monetary Union (EMU), of which Spain was a founding member. I particularly appreciate Professor Rojo joining me here for these opening remarks. He was the architect of the enormous effort of persuasion and economic and monetary policy action that secured Spanish access to the Union. He was the Governor of the Bank from the signing of the Maastricht Treaty until 2000, when the project had become a reality and when, to many people’s surprise, the Spanish economy had successfully completed a rocky road to convergence. A celebration like today’s without the presence of somebody so closely involved in this project would have been incomplete. Thank you, Ángel. For a country such as Spain, which has frequently been a late arrival at defining events in modern history, having been a founder member of this key project of European integration is a landmark. It demonstrates Spaniards' willingness and ability to contribute actively to European construction and, therefore, to the present and future welfare of its citizens.
Provided households’ borrowing decisions have a rational basis and accordingly include realistic assumptions about future interest expenditure, there is nothing to suggest that higher interest rates will have drastic consequences. This applies to the effects of increased interest expenditure on house prices as well as on consumption. Still, one cannot disregard the risk that some households have been over-optimistic about their future incomes and the future level of interest rates. More than 70 per cent of new lending is currently arranged at a variable interest rate. Moreover, the present level of interest rates is considerably below what the financial markets assume it will be in time. So the households that choose to stick to a variable rate must count on considerably increased interest expenditure further ahead, if interest rates develop in line with market expectations. Furthermore, during the past year the credit spread between a risk-free government bond and a housing bond has been virtually nil. All in all, mortgage institu-tions have therefore been able to offer very low rates even for fixed-interest loans. The combination of high house prices and low interest rates has meant that many households have acquired very large liabilities. In that interest rates have been pushed down by a large variety of partly temporary factors, it is not inconceivable that their level will double. That may entail a heavy burden for many households and one cannot be sure they realised this when they decided to borrow so much.

Mervyn King: Monetary policy developments Speech by Mr Mervyn King, Governor of the Bank of England, to the Institute of Directors, St George’s Hall, Liverpool, 18 October 2011. *  *  *  Mr Chairman, Ladies and Gentlemen, Surrounded by the magnificent architecture of St George’s Hall, we are reminded of the benefits and the costs of exposure to the world economy. Built at the peak of Liverpool’s mercantile fortunes, the Hall, and the other magnificent buildings of the cultural quarter, exhibit the prosperity derived from openness to trade. Indeed, tonight is the anniversary of a grand banquet held here on 18th October 1860 to celebrate the opening of the public library and museum building that stands opposite. Its construction had been financed by the guest of honour at the banquet that evening, William Brown, whose statue stands in the Hall today. Brown had profited from transatlantic trade both as a merchant and by establishing a bank which financed trade – at the time a risky business. In those days, finance and trade supported each other, and the city prospered. But the subsequent history of St George’s Hall, which fell into neglect in the last century, illustrates Liverpool’s vulnerability to changes in the rest of the world. The British economy too has enjoyed the benefits of globalisation. Now we are seeing some of the costs, as they play out in a global financial crisis.
Indeed, the reduction in the use of banknotes for transaction purposes and the prospect of the development, within the networks of the major global players in digital services, of crypto-assets as a means of payment, whose link with central bank money is complex and fragile, to say the least, if not non-existent for some, are likely to call into question the integrating and anchoring role that central bank money plays in our payment system. These threats are reflected in a rise and a change in the dimension of the risks that any wave of innovation naturally carries, and which the health crisis has helped to amplify. First of all, there are risks of a setback in terms of efficiency. Two risks are likely to change in scope: - The risk of fragmentation of the payment system, both for everyday trading and between financial players due to a lack of secure and efficient structural interconnection, through convertibility at par between crypto-assets and central bank money, between old and new payment solutions. - The risk of concentration, or even the emergence of monopolistic situations for the benefit of global digital giants and their private settlement assets, and therefore of Europe’s increased dependence in terms of payment services vis-à-vis foreign players, with the associated issues of personal data protection and industrial and monetary sovereignty. Then there are risks of a setback in terms of security.

The work conducted under the aegis of the G20, in which the Banque de France played a leading role, has confirmed that a CBDC can bring benefits in this area. However, to fully exploit this potential, central banks will need to coordinate their efforts to ensure that CBDCs in different jurisdictions are interoperable. In its experiments on a wholesale CBDC, the Banque de France tested the main multipleCBDC arrangements identified in the literature. As described in the report published by the Banque de France on 8 November, these experiments showed the different ways in which CBDCs can be made interoperable and highlighted the benefits of a CBDC in a cross-border setting (e.g. more efficient correspondent banking, settlement security). Lastly, choices will need to be made so that the CBDC interacts smoothly with private initiatives such as the EPI project, in order to strengthen the integration of the European payments market. CONCLUSION To conclude, I would like to come back to a question that comes up regularly, about the future role of banks and commercial bank money in a world of stablecoins and central bank digital currencies, and respond with one conviction and one wish. My conviction is that, given the way in which investigations are being conducted into a digital euro, which I have just summed up here, it is unlikely that banks will be erased from a future payments landscape in which stablecoins and central bank digital currency dominate.
The weakening of the pound is principally due to uncertainty surrounding next week’s EU referendum in the UK. However, the Japanese yen – and, albeit to a lesser extent, the euro – have appreciated despite the monetary policy easing of the respective central banks. The Swiss franc has moved within a narrow range, appreciating only slightly since the beginning of the year. This is likely due in part to the SNB’s monetary policy – that is, to the negative interest rate and our willingness to take an active role in the foreign exchange market, as necessary. Experience of negative interest rates This brings me to our experience of negative interest. For about one and a half years, we have been charging negative interest of –0.75% on sight deposits held by banks and other  BIS central bankers’ speeches  1  financial market participants at the SNB. As Thomas Jordan has already explained, negative interest helps to maintain the interest rate differential between the Swiss franc and other currencies. This differential is necessary in order to make investments in Swiss francs less attractive. If interest rates in Switzerland were the same as those abroad, Swiss franc investments would clearly be favoured in the current environment. Negative interest thus helps ease upward pressure on the Swiss franc. The negative interest rate continues to have the desired effect on the money and capital markets. Money market rates have been tracking close to the SNB’s negative interest rate for a number of months now.

New money market platform goes live The new electronic money market trading platform for repo transactions began operating at the end of February and has completely replaced the old system. The new trading platform’s name, CO:RE, is short for “Collateral & Repo”. The technical changeover to the new system went smoothly for all parties involved. The new trading platform gives more than 160 national and international participants a single access point for procuring and investing Swiss franc liquidity as well as managing collateral (i.e. pledged securities). It also enables the SNB to carry out its open market operations on the money market. After more than 15 years of service, the system which CO:RE has replaced was no longer able to meet the needs and technical requirements of market participants. As you know, the SNB is currently implementing its monetary policy using exceptional measures – negative interest on sight deposits and foreign exchange market interventions. In these circumstances, standard money market instruments – repo transactions and SNB Bills – are not being deployed. It is nonetheless important that counterparties are in a position to carry out these transactions seamlessly. The SNB therefore conducts small-volume tests. When a series of tests conducted in autumn 2014 revealed that some market participants were no longer sufficiently familiar with operational implementation, a second round of tests was launched in May 2016. This exercise will be concluded at the end of July. These kinds of test operations, which help ensure counterparties’ operational readiness, are greatly appreciated by market participants.
Whilst we in Asia, backed by the strong fundamentals of Asian economies and swift stimulus measures, were able to rebound quickly and lead the world into recovery thus far, recent developments surrounding the ongoing sovereign debt crisis in several advanced economies have sparked fresh concerns which could imperil global growth, derailing the road to a more robust global economic recovery. This unsettling financial environment prompts a reminder that fundamental changes are gravely needed in the global financial sector. Much effort in making these changes are still taking place at various international fora, with most have largely centered on reforming financial regulation and supervision. Beyond regulatory and supervisory reforms, there is an increased global emphasis for effective, efficient and responsible financial intermediation that promotes economically, socially and environmentally sustainable development and long-term growth. It is now generally accepted that the overriding objective of global development must be founded on genuine and productive arrangements, leading to the path of sustainable growth and shared prosperity. Islamic finance is well positioned to meet this objective. Malaysia’s long and experienced journey in Islamic finance and the various measures that were put in placed attest to our commitment in pursuing well-rounded growth and development for the nation. Today, Islamic finance forms part of the overall financial services industry that has proven to be an instrumental engine for driving economic growth for our economy. Let me now briefly recap the evolution of Islamic finance in Malaysia.

They have the capability to preside over such cases and give firm, consistent decisions with the backing of SAC rulings. As part of our collaborative effort to expand human capital development initiative, measures are being made to ensure that players within the industry including judges and lawyers are trained in Islamic finance. Moving forward, with the existence of a dedicated court, competent human capital and consistent legal precedents, our courts and arbitration centre are well qualified to serve as a platform for adjudication and dispute settlement. The development of the requisite facilitative legal infrastructure is continuing. It is an ongoing and dynamic process. In the early phases of development, Malaysia had looked into the legal impediments that might hinder Islamic finance. What lies ahead is to harmonise existing laws such that it accommodates and facilitates Islamic finance in the most legally efficient way possible. These laws are not confined to those under financial services acts but to all Malaysian laws. As the future of Islamic finance depends on its agility and innovativeness in developing new products, our laws have to be facilitative and contemporary. Countries that intend to promote Islamic finance must also have laws that are clear and easily enforceable. In this respect, having common laws, or a reference point for laws on Islamic finance, would serve to benefit the industry worldwide. To this end, we are pleased to announce the formation of a Law Harmonisation Committee.
To achieve this, after raising interest rates to close to the "neutral interest rate" of 2% in December, we are now embarking on the second phase towards monetary stabilisation: ideally, it would be good to reach the right "terminal rate" by next summer, but it is still too early to say what that level will be. We need to remain pragmatic and to be guided by observed data, including on core inflation, without getting fixated on overly mechanical rate hikes. We will then be prepared to remain at this terminal rate for as long as necessary: the sprint to raise interest rates in 2022 is now becoming more of a long-distance race, and the duration will count at least as much as the level. In parallel, we shall continue to focus on maintaining financial stability, helped by the strong resilience of French banks and insurers. In Europe, 2023 needs to be the year when Basel III is transposed into EU law and the Solvency II review is completed. Regarding crypto-assets, the disruption seen in 2022 is nourishing one basic conviction: France should switch as soon as possible to the compulsory authorisation of DASPs (digital asset service providers) rather than simply requiring their registration. And this needs to happen well before MiCA enters into force, to create the necessary framework of trust. 2) Less protection and more adaptation. The government can cushion the energy shock temporarily, but it cannot make it disappear.

Emerging market economies now account for more than half of global GDP and they accounted for more than 95% of world economic growth between 2008Q1 and 2011Q4.4 They are now facing a set of inter-related challenges, including high and growing levels of debt to GDP, slowing economic growth, falls in commodity prices which has hit commodity exporters and a strong US dollar. The healing process How should we read this picture? Is it still slow healing, just slower and hit by more adverse events than we expected? Or, like our friend the frog, has the gradual nature of the drift down in prospects and the fact that the deflationary shock looks so clearly to have been externally generated lulled us into missing some more fundamental shift? Is the water around us much colder than we thought? I think there is still some mileage in the slow healing story to explain the drift down in UK growth and the failure of pay and productivity to recover. One cannot repair quickly the damage to the global economy from the worst international financial crisis for 80 years. Some, but not all, of the effects of the financial bust and deep recession have passed. But some have not. I want to look now at some of these effects and headwinds that may be holding us back. First, there are signs that there may still be some scarring effects in the labour market.
If, at failure, there is no obstacle to putting the firm into insolvency and paying out covered deposits using the relevant deposit guarantee scheme (DGS) then no MREL is required beyond capital requirements as a going concern. This goes too to the location of TLAC or MREL in groups. There needs to be externally issued MREL wherever, under the preferred resolution strategy, bail-in of external liabilities is likely to occur or where other resolution tools are to be applied. The plan under a single point of entry (SPE) strategy is that only the entity at the top of group is put into resolution on the basis that the interdependencies within a group are so extensive that resolving the different operating companies within a group separately is either impossible or not credible. By contrast where a group is organised in a more modular fashion with limited or no interlinkages between the parts, then the resolution can have multiple points of entry (MPE). It has been convenient for exposition to set up this dichotomy between SPE and MPE. But in practice, many SPE firms will have around the periphery subsidiaries that could be resolved separately or allowed to enter an insolvency without adverse consequences for the resolution of the firm. And many MPE banks are, in practice, collections of SPE strategies. They may be set up to be resolved jurisdiction by jurisdiction. But within jurisdictions the resolution is likely to involve keeping together in resolution the legal entities within that jurisdiction.

As primary dealers, you play an important role in implementing best practices internally and supporting the integrity and efficiency of markets. The TMPG’s and the FXC’s best practices are intended not only for dealers or market makers, but for all participants active in the relevant market. Your firms are important first adopters of best practices given your positions as central nodes. We also expect you to be engaged in a process to proactively identify emerging risks and vulnerabilities, and to suggest improvements to best practices as market structure evolves. We highly value your role as responsible counterparties and market participants, and expect your continued engagement and support in maintaining fair and effective markets. Thank you. 22  For instance, FINRA recently amended its Margin Requirement rule to establish margin requirements for forward-settling TBA transactions and noted that its proposal was “informed by the set of best practices adopted by the Treasury Market Practices Group.”  BIS central bankers’ speeches  7
These are often fast moving so we need to monitor them on a daily or weekly basis so we can ascertain how businesses are performing and to identify product or risk management vulnerabilities. Good practice examples of the data we typically receive where a strong and cooperative relationship exists with home state supervisors and firms, are set out in the statement. They include:  a. daily or weekly profit and loss figures covering global and local business lines; b. weekly or monthly group market risk reports; c.  the outputs from reviews e.g. the Supervisory Review and Evaluation Processes;  d. information on stress tests and how these affect the UK entity; e. group liquidity information regularly in normal time and more frequently once there is a period of market stress; f.  any material change in the operational resilience of the firm or group, for example, cyberattacks that may affect the group systems and are used by the UK business or which threaten the survival of the firm or group; and  g. material findings from internal risk or audit functions, or external audit reviews (particularly where there are common group wide systems and controls). I would stress that, where we ask for Group information, we are not duplicating the work of the Home Authority. Rather we are looking at the information through our host lens - focused on how developments at Group could influence and impact the local entities we supervise, and how local management are responding.

The establishment of the complaints unit by insurers and takaful operators is expected to promote a more pro-active approach in the management of complaints. Such consumer complaints also provide valuable information regarding any shortcoming in the products and services. Responding to consumer complaints also promotes customer goodwill. Certainly, as consumer awareness and financial literacy increases with the implementation of this Consumer Education Programme, it is essential for financial service providers to recognise the opportunity to build customer loyalty and increase customer retention through this mechanism. Ladies and Gentlemen, The advent of new technology and other market innovations will bring new challenges and possibilities for businesses and consumers. We can expect that this pace of change in the financial services industry will continue to increase. In striving to adjust to these changes, we should not underestimate the significant improvements in financial and business practices that can be achieved by empowering consumers through education. BIS Review 38/2003  3  As we continue on this drive to raise the standards of individual economic and financial well-being through consumer education, the broad involvement of all parties involved in every stage of the programme’s implementation is vital to encourage expanded linkages between business and consumer education on an ongoing basis. Our success in this important endeavour will have a significant bearing on how well prepared our society is to meet the challenges of an increasingly dynamic and complex financial environment.