samchain/econo-pairs-v1 huggingface dataset:
(2009b), “Exchange Rates, Real Adjustment and Monetary Policy,” presented at the 2009 Money and Banking Conference, Banco Central de la República Argentina. Desormeaux, J., P. García and C. Soto (2009), “Terms of Trade, Commodity Prices and Inflation Dynamics in Chile,” forthcoming, BIS Papers. Edwards, S. and R. Rigobon (2009), “Capital Controls, Exchange Rate Volatility and External Vulnerability,” Journal of International Economics, Vol. 78, No. 2, pp. 257-267. Ellis, L. (2008), “The Housing Meltdown: Why Did It Happen in the United States?,” BIS Working Paper No. 259. BIS Review 113/2009  9  Plosser, C. (2007), “Two Pillars of Central Banking: Monetary Policy in Financial Stability,” Opening Remarks at the PACB Convention, Federal Reserve Bank of Philadelphia. Prasad, E., K. Rogoff, S. Wei and A. Kose (2003), “Effects of Financial Globalization on Developing Countries: Some Empirical Evidence”, IMF Occasional paper No. 220.

Towards midyear it was even possible to raise the interest rate substantially to tackle a surprise rise in inflation that was much deviated from the target. This was so thanks to the fact that the purchase of dollars was being carried out mechanically, despite a significantly depreciated exchange rate after the intervention. The purchase of foreign currency was concluded prematurely due to global tensions in global liquidity in dollars in September of last year. The capacity of the Chilean economy to subsequently deal with a significant exchange rate depreciation, with monetary easing prospects and reduced inflationary pressures, is proof that there was no inconsistency between the decision to intervene and the conduct of monetary policy (Figure 2). It also shows that the flexible exchange rate regime adopted early this decade has the economy well prepared to absorb exchange rate fluctuations without the turmoil that used to come with them in the past. 4. Bubbles, exchange rates and capital inflows in emerging economies  Latin America went through a period of large capital inflows in the first part of the 1990s (Calvo et al., 1996). We cannot disregard the possibility that after the current crisis is over, there will be a reemergence of inflows to emerging economies. Therefore, there could be strong pressures for a sharp increase in the valuation of domestic assets, with a potential bubble in their prices, and this bubble could take the form of an exchange rate appreciation.
It must be recognised that many individual companies would have neither the resources nor the inclination to pursue these actions on their own. Yet such actions can shape policy, be a force for change, and build reputational capital and credibility with long lasting payoffs for the industry at large. As the broking and insurance community come together today, the questions that are being asked will almost certainly include: What lies ahead for the insurance broking industry? What are the key challenges that will face the industry? How will the landscape continue to change? Where will new opportunities lie? Where will new threats come from? And ultimately, how confident is the industry of its future? I am sure these questions will all be addressed in some way over the course of this Summit. A sampling of what has already been said and published on this subject would indicate that insurance broking is at a crossroad of critical strategic business decisions that will have a significant impact on its future prospects. We often hear this at different periods in time, and each time there is a sense that this will be the defining moment for the industry. I would like to suggest however, that this sense is more palpable in the current environment for a number of reasons that I would like to explore this morning. Let me begin with the Global Financial Crisis. While it is largely associated with a banking crisis, its implications have spread far beyond the banking sector.

The diversification into a broader range of activities however increases the potential for conflicts to arise between the interests of clients in a traditional broking context, and that of the broker which may seek to protect relationships with insurers that it has dealings with in a different context. Brokers engaged in risk consulting activities may also have strong incentives to increase commission revenue by inappropriately influencing clients to purchase more insurance than they need or which do little to provide meaningful protection. In Malaysia, these issues are coming into greater focus with growing demand for valueadded services that brokers can provide. We do not believe that disclosures alone are sufficient to mitigate the risk of conflicts. We have presently required brokers to limit the revenue earned from these activities to 20% of total revenue in the previous financial year. We are also insisting on strengthened procedures and controls within brokers to manage conflicts. And we are asking brokers that engage in additional activities to demonstrate to us that their core broking responsibilities have not been compromised – including in terms of the adequacy of competent resources performing core broking functions, the quality of infrastructure supporting core broking activities and the outcomes produced for broking clients. This is also a time for the industry to come together collectively to raise the bar on standards of professional ethics and conduct that must be demonstrated towards clients. Such a code needs to clearly address new business realities and changing expectations of the industry.
In the field of transparency, the key elements of the new partnership are, first, a commitment by emerging market economies to implement transparency about transparency by publishing ROSCs, and, on the part of the international community, new opportunities for emerging markets to engage in the process of constructing and developing codes and standards. There is encouraging evidence of greater collaboration and consultation between developed and developing countries in the design and implementation of the core standards – for example, on banking, securities and insurance regulation, data, payment systems, insolvency and transparency of monetary, fiscal and financial policies. That is all to the good and there is further to go. It is crucial that we find new ways of involving emerging market countries in the process of designing and implementing standards and codes. In this area, ownership is all. Transparency cannot and should not be imposed on any country. Countries themselves benefit most from being transparent and releasing the reports of assessments by the IMF about their financial systems. And the enthusiastic embracing of transparency by a number of emerging markets has paid off in terms of better relations with creditors. Ultimately, the most successful route to enhance the influence of emerging markets on the development of standards and codes is to strengthen the role of the IMF and the World Bank, the twin institutions that can claim legitimacy through the membership of 183 countries.

This has facilitated the smooth flow of funds in the Islamic financial system. With the development of the bond market in Malaysia which now accounts for 81% of GDP, the Islamic private debt securities account for about 44% of the total outstanding amount of private debt securities in the market, while the monthly traded volume of the Islamic money market is now about RM30 to RM40 billion. The money market also effectively serves as a channel for the conduct of liquidity operations by Bank Negara Malaysia as part of its monetary policy. The rapid expansion of the Islamic financial services industry in Malaysia is also supported by a conducive legal and Shariah framework. In terms of the legal infrastructure, the Islamic Banking Act 1983 and Takaful Act 1984 governs the conduct of the Islamic banking institutions and takaful operators respectively. There is also the Government Funding Act which governs the issuance of government Islamic instruments. A dedicated High Court judge has also been assigned to preside over cases relating to Islamic banking and finance. An arbitration centre is also available to deal with disputes. The Central Bank Act has also been amended to provide for the establishment of a Shariah Advisory Council at the Central Bank as the sole authority and reference on all Shariah matters. The treatment of tax neutrality has also been accorded to Islamic financial transactions.
An important difference compared with earlier financial crises that have been preceded by high asset prices, strong growth and a large credit boom is that economic policy has now provided better fundamental conditions for stability than before. Serious financial crises have often, as I mentioned earlier, been reinforced by the fact that various types of economic policy change have contributed directly or indirectly to forcing indebted households and companies to reassess their future ability to pay. The game rules have often been changed in a way that has meant that there were strong reasons for a downward revision of expectations for the future. The expectations on which companies and households have based their loan-financed consumption and investment decisions have afterwards proved to be overly optimistic. Banks which have not been able to predict these changes and which have also had under-developed risk management systems, with a strong concentration of their assets in particular industries, have also been important elements in most financial crises that have followed on from a financial bubble. A high central government debt and high inflation from the start have also reduced the possibilities for stimulating the economy. The optimism that pushed up share prices and growth during the previous economic boom was largely based on expectations that information technology would increase production capacity in the economy. The over-optimism that arose was broken when companies could not demonstrate the profit levels that were expected, but no economic-policy game rules were changed.

However, in order to uphold confidence in, and support for, monetary policy it is important to give a detailed report of when such factors are taken into account. This is a strategy the Riksbank follows. So far, the Riksbank has not found reason to take account of what happens beyond the normal forecast horizon when formulating its monetary policy, although it does normally produce surveys of the economy for longer periods. However, I have argued on several occasions in 1999 and 2000 that there was reason to raise the instrumental rate, taking into account the effects in a longer term perspective. BIS Review 43/2002  3  Nevertheless, asset prices should not be included in the formulation of monetary policy targets. There is otherwise a risk that the central bank would counteract adjustments that were fundamentally motivated. This would reduce the efficiency of the resource allocation and probably subdue growth. Other measures In addition to price stability, most central banks have a responsibility for financial stability. According to a narrow definition, financial stability is equal to a lack of crises in systemically-important banks. The banks have important functions with regard to the payment system and the supply of capital. It is easy to see that without an efficient payment system and capital supply the economy would be unable to function. Monetary policy would have no effect in this situation.
So what evidence do we have on these three characteristics in real financial networks? Charts 1-3 look at the evolution in the international financial network. In particular, they look at cross-border stocks of external assets and liabilities in 18 countries at three dates: 1985, 1995 and 2005. These data can be used to gauge the scale and evolution of interconnectivity within the global financial network. In Charts 1-3, the nodes are scaled in proportion to total external financial stocks, while the thickness of the links between nodes is proportional to bilateral external financial stocks relative to GDP. 13 Table 1, meanwhile, provides some summary statistics for the international financial network, in particular measures of the skew and fat-tailedness in the degree distribution and its average path length. Three key points emerge. First, it is clear that the scale and interconnectivity of the international financial network has increased significantly over the past two decades. Nodes  8  May (2006). 9  Pröpper et al (2008). 10  May and Anderson (1991), Porterie et al (2008). 11  Watts and Strogatz (1998). 12  On the former see Albert et al (2000); on the latter see Porterie et al (2008). 13  Specifically, nodes are scaled by (Total External Assets + Total External Liabilities) for each node, and links between nodes i and j by (Total External Assetsij + Total External Liabilitiesij )/(GDPi + GDPj). The data are developed and analysed in Kubulec and Sa (2008). 6  BIS Review 53/2009  have ballooned, increasing roughly 14-fold.

That is one reason why Glass-Steagall is now back on the international policy agenda. It may be the wrong or too narrow an answer. But it asks the right question: can network structure be altered to improve network robustness? Answering that question is a mighty task for the current generation of policymakers. Using network resilience as a metric for success would help ensure it was a productive one. Conclusion Through history, there are many examples of human flight on an enormous scale to avoid the effects of pestilence and plague. From yellow fever and cholera in the 19th century to polio and influenza in the 20th. In these cases, human flight fed contagion and contagion fed human catastrophe. The 21st century offered a different model. During the SARS epidemic, human flight was prohibited and contagion contained. In the present financial crisis the flight is of capital, not humans. Yet the scale and contagious consequences may be no less damaging. This financial epidemic may endure in the memories long after SARS has been forgotten. But in halting the spread of future financial epidemics, it is important that the lessons from SARS and from other non-financial networks are not forgotten. References Akerlorf, G, and Shiller, R (2009), “Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism”, Princeton University Press. Albert, R, Albert, I and Nakarado, G.L (2004), “Structural vulnerability of the North American power grid”, arXiv:condmat/040107v1.
So let me present what is perhaps a simplified background to some of the ideas and theories that explain the behaviour of financial markets. What governs share yields? Much of the time-honoured advice that is now disseminated to optimise share investment is based on what Harry Markowitz arrived at half a century ago as a 25-year-old graduate student at Chicago  2  BIS Review 5/2001  1  University. Share investment involves risks that can be reduced by not putting all the eggs in one basket. Buying one particular share entails risks of two types; one to do with conditions pertaining to the company in question, the other with the economy in general, that is, factors affecting the stock market as a whole. Markowitz showed that with a portfolio made up of shares in a sufficient variety of companies and industries, the company-specific risks virtually cancel out. The risk inherent in the stock market’s overall fluctuations remains but the aggregate risk is reduced. This insight was soon followed by the efficient-market hypothesis, which became a central tenet in the 2 literature and has far-reaching implications. It implies, for example, that consistently beating the market, so that the return exceeds the average for all shares, is out of the question. As the market always knows best, active management or even individual analysis by the ordinary share investor is pointless. The optimum is invariably a passive portfolio that mirrors the market. In this way, the amateur can achieve just as good a return as the professional.

Mark Carney: The Sustainable Development Goal imperative Remarks by Mr Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at the United Nations General Assembly, High-Level Thematic Debate on Achieving the Sustainable Development Goals, New York City, 21 April 2016. * 1. *  *  The SDG imperative  The Sustainable Development Goals are a moral imperative, with objectives that include nothing less than ending poverty, fighting inequality and injustice, and tackling climate change. 1 The SDGs are also an economic imperative. Their achievement would mean greater productivity, increased labour supply and ultimately stronger growth. In short, they could pull the global economy out of its current malaise of secular stagnation. 2. The scale of investment required to achieve the SDGs is immense  Achieving the SDGs will require both a step change in the quantum of investment and a marked reorientation of its destination. Over the next 15 years, the global population is expected to grow by just over a billion. 2 Another one and a half billion people are expected to urbanise. 3 Although moving to a low-carbon future will not necessarily require substantially more investment than business as usual, 4 it will require a radical re-focusing of that investment from high- to lower carbon technologies. Overall, it is estimated investments of between $ and $ trillion a year are needed for infrastructure, clean energy, water, sanitation, agriculture, and the other SDGs. 5 This is significant but achievable. 3.
1 DP1/21 – A strong and simple prudential framework for non-systemic banks and building societies | Bank of  England 2 Building strong and simple: the first step – speech by Victoria Saporta | Bank of England 3 The PRC and FPC have announced that they will conduct a review of the UK leverage ratio framework in light of  revised international standards once there is further clarity on the new legal framework following the UK’s withdrawal from the EU. 4 The Bank of England’s review of its approach to setting a minimum requirement for own funds and eligible  liabilities (MREL) – Discussion Paper | Bank of England 5 Internal Ratings Based UK mortgage risk weights: Managing deficiencies in model risk capture | Bank of  England 6 Sections 3B(1)(f) and 138K of the of the Financial Services and Markets Act (2000). 5/5  BIS central bankers' speeches

For example, CXA Group, a health technology start-up established in Singapore, is expanding its services to China and is planning to partner Shanghai Zhongheng Insurance Brokers for its China expansion. There is scope for collaboration to enhance our mutual understanding of new business models and assist in negotiating regulatory hurdles for these companies. 16 One important aspect of enhancing the eco-system is the enrichment of the range of financing opportunities for FinTech companies. Venture capital (VC) managers are an essential component of the start-up eco-system, providing capital as well as expertise to start-ups and early growth businesses. China already has the largest concentration of VC funding globally2. Singapore also hopes to create a conducive environment for VCs by simplifying the approval process and regulatory regime for VC managers. At the same time, we hope to expand the range of funding options to cater to the varied needs of companies at different stages of development. Finally, there is also room to deepen information and knowledge exchange between Shanghai and Singapore industry participants. To this end, MAS and the Shanghai Financial 17  Services Office are discussing a customised training programme to encourage mutual exchange between financial sector players. Through such exchanges, industry participants can get a better understanding of each other’s markets and enhance their knowledge of specialized topics. 18 And this marks only the beginning of our long-term relationship.
During the period from 1980 – 2005, the agriculture sector further declined in relative terms from around 28 percent to 17 percent, while the industry remained unchanged at around 25 – 26 percent. But the services sector increased its share from 43 percent in 1980 to 56 percent in 2005. In the recent past, services have been the main and the significant contributor to economic growth in Sri Lanka, pushing industry and agriculture to the second and third places, respectively. It is this phenomenal growth in the share and the contribution of services which has caused concerns for and attracted criticism by some quarters. 2  Mahavansa, Part II, Sinhala Translation by Rev. H Siri Sumangala & Batuwantudawa, (1912). Ch. 69 – p.125  3  H Ellawala, The Social History of Ancient Ceylon, (Sinhala Translation) Chapter 7 (1969)  4  Dutch Power in Ceylon, Chapters 6 and 7  BIS Review 4/2007  3  Sri Lanka’s current stage of the development of the services sector can be contrasted with some selected developed countries and countries in the region.

Professor Tilakaratna’s greatest contribution to economics was his continuous upgrading of the standards of the syllabuses and examination papers in economics at the GCE (Advanced Level) Examination to be on par with international standards. New theories, trends and ideas in economics were all built into his examination structures with a time gap of only one or two years. This strategy forced students, teachers and, above all, tuition masters, to continuously update their knowledge. The failure to do so would have meant failure at the examinations. From his side, to help them, he wrote text books, appeared on the educational services of both Rupavahini and the Broadcasting  BIS Review 4/2007  1  Corporation and attended frequent public and teachers’ seminars. When the Central Bank broadened the definition of money supply and introduced the concept of high powered money, it took only less than two years for these new subjects to be a part of the examination paper. He confessed to us that he had to learn these concepts anew in order to handle them safely as examination material. He was also an administrator par excellence as the Chairman of the University Grants Commission. In this position, he was able to perform his duty without fear or favour. He had the remarkable ability of effectively managing politicians, friends and even relatives who made unreasonable demands which were against the approved rules and regulations.