samchain/econo-pairs-v1 huggingface dataset:
First, Countrywide had paid millions of dollars each year to big banks as a liquidity insurance policy so that, in the event of difficulty, they would provide it with long-term loans. So on August 17 Countrywide was able to claim on that insurance and draw down $ of committed credit lines. Northern Rock had not taken out anything like that level of liquidity insurance. So when it came to the Bank of England for support, it was important that liquidity was not provided free. Second, even though Countrywide had insurance, its depositors were still worried. On hearing that it had claimed on its insurance, queues formed. But those queues were short and soon dissipated. The depositors simply did not face the same incentives to withdraw their money. The United States has a well-developed insurance scheme for depositors. If a bank is forced into administration, there are mechanisms in place to repay depositors in full, up to $ per account. And most importantly, the depositors are paid within just a few days. Without such a scheme in the UK, once the queues started to form at Northern Rock, other depositors faced every incentive to join them. The only way to stop the run was for the Chancellor to announce a government guarantee of the deposits of Northern Rock, which today was extended to new depositors as part of the continuing stabilisation plan for the business. BIS Review 114/2007  3  So what are the main lessons for us from the recent episode?

We will be monitoring closely the impact of tighter credit conditions on demand and output over the  4  BIS Review 114/2007  coming months. Even though inflation is close to the target and pay pressures are muted, we will continue to look ahead and monitor the risks to inflation that we identified in August: the signs from surveys and financial markets that people expect inflation to pick up; the strength of company pricing intentions, and the recent increases in world commodity prices. Keeping inflation close to the 2% target is the biggest contribution the Bank of England can make to economic stability generally. Changes in Bank Rate could not prevent the profound change in the world economy that pushed down yields on low-risk financial assets and led investors to take on more risk. They cannot now prevent the re-pricing of that risk. And just as Bank Rate was not set to insulate the manufacturing sector from the trade deficit that resulted from the earlier change in the world economy, it will not be set now to insulate the banking system from the re-pricing of risk. But you can be sure that we will do whatever is necessary to keep inflation close to the 2% target. Tonight is the first time that the Court of the Bank of England, and the Monetary Policy Committee, have gathered in Northern Ireland. So much has changed in the Province since the troubles started and I first came to Belfast to speak at Queen’s University.
Over the past 20 years, nominal mainland GDP has increased by around 6 percent annually, and growth is still hovering around that trend. There were some tendencies towards overheating in the years prior to the financial crisis. Price and cost inflation in the Norwegian economy picked up markedly. But the correction that followed during and after the crisis has brought growth back to trend. There is little in this chart to indicate that the world economy has recently been through the most severe economic downturn in post-war history. 6  BIS central bankers’ speeches  The picture changes when growth is broken down into price and volume. The high prices for domestically produced goods are the main factor that has supported our country’s income. Since 2005, producer prices have increased considerably faster than trend. This illustrates that mainland businesses have also benefited from the substantial improvement in Norway’s terms of trade. Chart 13: Mainland GDP – slump in economic activity Economic activity, on the other hand, slumped during the financial crisis. Although economic growth has picked up in the past few years, the level is still clearly below the pre-crisis trend. This would indicate that the financial crisis and the debt crisis have had lasting effects on the Norwegian economy as well. Chart 14: Mainland GDP – per capita The picture becomes even clearer when population growth is factored in. Measured per capita, we do not generate more value today than we did five years ago. This picture is similar to that of other advanced economies.

From a global viewpoint, there is reason to believe that the worst of the crisis is over. The Norwegian economy is in a unique position. The wealth in our time is not a short-term asset. We are likely to benefit from revenues and positive impulses from oil activities for many decades ahead. But that source will not spring eternal. If we are to maintain our prosperity over time and reduce the vulnerability to a fall in  8  BIS central bankers’ speeches  petroleum revenues, we must generate a larger number of profitable investments in the mainland economy – both in the public and the private sector. We must also provide stronger incentives for participating in the labour market and generating value added. Perhaps Norway is not so much an economy apart after all. There will be new times. Come what may. Thank you for your attention. Charts  BIS central bankers’ speeches  9  10  BIS central bankers’ speeches  BIS central bankers’ speeches  11  12  BIS central bankers’ speeches  BIS central bankers’ speeches  13  14  BIS central bankers’ speeches  BIS central bankers’ speeches  15  16  BIS central bankers’ speeches  BIS central bankers’ speeches  17  18  BIS central bankers’ speeches
In this regard, a payment platform is being developed to  Central Bank of Sri Lanka – ROAD MAP 2017  23  effect government payments,  applications to strengthen security of  particularly the payments to Sri Lanka  electronic payments. Customs, through the Common  In year 2016, the Central Bank adopted  Electronic Fund Transfer Switch (CEFTS)  the Cabinet approved National Policy on  in real time. A National Card Scheme  Anti-money Laundering and Countering  (NCS) is being introduced as a cost  the Financing of Terrorism. Currently, all  effective alternative to currently  the stakeholders are in the process of  available international card schemes and  developing their internal frameworks to  a Common Point-Of-Sale Switch (CPS) is  support the national policy on Anti-  being developed to facilitate clearing  Money Laundering and Countering the  and switching of payment cards issued  Financing of Terrorism (AML/CFT). under the National Card Scheme. A Common Mobile Switch (CMobs) will be implemented to ensure interoperability between mobile wallets. Further, we will monitor the progress of licensed banks and other financial institutions joining the CEFTS, CPS and CMobs and adopt policies with a view of increasing the efficiency of electronic retail payment systems and minimising risks associated with such payment systems. Going forward, we will strengthen the supervisory framework and carryout onsite and off-site supervision of licensed service providers of payment cards and mobile payment systems to ensure compliance with regulations and guidelines.

governance and risk management  The Central Bank is ready to receive duly  framework that balances return  completed applications from eligible  objectives with prudent risk  companies, which would be submitted  management and controls, Strategic  to the Monetary Board. Continuous  Asset Allocation (SAA) for the  surveillance and on-site examinations of  international reserves, managed by  Licensed Microfinance Companies  Central Bank, has been developed and a  (LMFCs) will be conducted by the  new Investment Policy Statement has  Central Bank. We expect to maintain a  been drafted in line with it. The  constant dialogue with the LMFCs and  Investment Guidelines have been  increase awareness on regulations. reviewed to reflect the revised  While we are proposing policies and  investment criteria. plans for the financial sector, as the apex  Going forward, we expect to ensure a  financial institution in the economy, we  proper Enterprise Risk Management  also need to ensure the stability,  (ERM) Framework for the Central Bank,  continuity and safety of our own house. which involves setting up a new Risk  In particular, it is important to foster a  Governance Structure and developing  risk culture within the Central Bank as  systems and procedures to monitor  central banks are considered as the  financial and non-financial risks of the  trustee of public assets.
Regardless of our status – decision-makers, policy makers, researchers, academia or journalists – the report provides abundant information for furthering our analyses and conclusions. I invite you all to read it, and rationally and responsibly materialise its conclusions in your analyses for the present and the outlook of the economy. Thank you! 2/2  BIS central bankers' speeches

Settlement risks  BIS Review 46/1999  2  with repo transactions, however, are significantly lower because in our system, collateral must only be transferred between accounts by the central securities depository. This is a simple and straightforward process which - if necessary - could even be implemented manually. Consequently, we encourage banks to pay special attention to their holdings of repo collateral when engaging in their liquidity planning. Furthermore, we will considerably expand our repo basket by including selected foreign currency securities. This step which is primarily motivated by our intention to transact also with counterparties abroad obviously produces a useful sideeffect on collateral availability over year-end. It is our clear commitment to provide liquidity sufficient to smooth market developments before and at the transition. Of course, all banks, especially those which do not engage in repo transactions, can avail themselves of significantly increased lombard limits just for the year-end, if they wish so. As regards the distribution and the available stock of banknotes, we have made the necessary provisions. After having put a new banknote series into circulation recently, our inventories are more abundant than they would have to be even in a worst-case scenario. Final remarks Let me conclude by making two final remarks. Firstly, the need for successful active and reactive communication can hardly be overestimated. The millennium has an almost magical fascination which may stimulate crisis fantasies and is perfectly capable of triggering herd effects.
I perceive them mainly as a policy statement of how the Fed intends to act in future, and a signal of its determination to achieve its objectives.18 As I see it, Fed has thus explicitly adapted its strategy to  16 The Fed’s communication so far has focused on target deviations downwards, which are compensated for by  overshooting the target. 17 For a more detailed description of “average inflation targeting”, see Nessén and Vestin (2005). 18 Powell (2020) puts it like this: “Overall, our new Statement on Longer-Run Goals and Monetary Policy Strategy conveys our continued strong commitment to achieving our goals, given the difficult challenges presented by the proximity of interest rates to the effective lower bound.”  9 [15]  tackle the challenges most central banks are currently facing. As the monetary policy situation in the United States has a lot in common with that in many other countries, these changes will be analysed in detail by central banks around the world. The changes can certainly be regarded as more of an “evolution” than a “revolution” of the Fed’s monetary policy.19 But they are nevertheless sufficiently large for other central banks having to examine them in detail and discuss whether they should do something similar. This also applies to the Riksbank, of course. My most important messages Let me conclude by repeating my most important messages. The pandemic has brought the international discussion on the central banks’ monetary policy framework and strategy to a head.

SPEECH DATE:  7 October 2020  SPEAKER:  First Deputy Governor Cecilia Skingsley  VENUE:  Nordea  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  Post-pandemic monetary policy and the future of the interest rate as a policy tool* The coronavirus pandemic has had a dramatic impact on the economic playing field. For the second time in a little more than a decade, governments and central banks around the world have needed to take powerful measures to alleviate, as far as possible, a recession and try to prevent lasting damage to the economy. One result of this has been that an increasing number of central banks now find themselves in a situation where inflation is undershooting the target and the policy rate is at or close to its lower bound. In some economies, such as the euro area and Sweden, the policy rates have been low for a long time. But the pandemic has also meant that, for instance, the US Federal Reserve, which as recently as just over a year ago had a policy rate of more than 2 per cent, has had to quickly lower it to basically 0 per cent. Thus, one could say that the monetary policy playing field has become more even (see Figure 1).
However, it would in general have been possible to attain the inflation target in the nearer term by changing the interest rate more rapidly and more markedly. Hence, in Norges Bank’s conduct of monetary policy, emphasis is given to variability in both output and inflation. This is called flexible inflation targeting. The impact of monetary policy occurs with a lag. The current inflation rate does not therefore provide sufficient information to determine the level at which interest rates should be set now. Our analyses indicate that a substantial share of the effects of an interest rate change will occur within two years. The choice of a two-year horizon is thus based on striking a balance between inflation stability and output stability and on a perception of how interest rates influence the path of inflation and output. Activity in the economy moves in waves. This variability can be described by developments in what is known as the output gap. The output gap shows capacity utilisation in the mainland economy measured as the difference between actual GDP and the level indicated by trend growth, estimated at 2½ per cent in Norway. When the output gap is positive, the economy experiences an upturn, and a downturn when the output gap is negative. The output gap increases in value in an upturn and decreases in a downturn. For the Norwegian economy, the 1980s was a period of relatively wide fluctuations in activity, with periods of high inflation.

Ian Plenderleith: Monetary stability as a foundation for sustained growth Speech by Ian Plenderleith, Executive Director of the Bank of England, to the National Association of Pension Funds Investment Conference held in Eastbourne on 14 March 2001. *  *  *  The UK economy has embarked on the new millennium with much the same healthy stride as marked its progress through the final years of the old. Over the past year, we have seen the economy continue to achieve steady and sustainable growth. We are, indeed, now in the ninth year of continuous positive growth in output. This remarkable track record has brought with it a steady rise in employment, with the benefits being felt in high levels of job creation throughout the regions of the country; and unemployment has fallen to the lowest levels we have seen in decades. All of this has been achieved with inflation remaining low: the RPIX is currently running a little below our target of 2 1/2% and has averaged 2.4% pa over the nearly-four years since the MPC was given responsibility for managing interest rates. In the process, with inflationary expectations now anchored at low levels, 10-year bond yields have fallen to around 4 3/4%, as low as can be found in any industrialised country except Japan. What is particularly encouraging about the past year is not just that we have been able to continue on the track of steady growth.
As shown in a survey made by Finansinspektionen earlier this year, there are many indications that the households taking on loans are those that can afford to borrow. The Riksbank has also drawn this conclusion so far in its Financial Stability Reports. I therefore find it difficult to believe that the developments in the housing and credit markets at present would constitute any danger to the banks and thus to financial stability. BIS Review 70/2010  9  Concluding remarks In connection with dramatic events like the recent financial crisis, proposals for radical changes tend to crop up in the general debate. But I do not see a radically-different monetary policy ahead of me. I am still convinced that flexible inflation targeting is the best monetary policy solution for Sweden. The repo rate is not the most effective weapon for trying to prevent or alleviate an imbalance in, for instance, the property market, but this does not mean it is completely ineffective. We must become better at analysing financial conditions and not least at capturing variables such as house prices and credit growth in our forecasts. And this is something we are working hard to achieve, both at the Riksbank and in many other areas. We must become better at clearly explaining how we assess the risks of a bubble given a particular repo rate policy, and what consequences a bubble may have if it bursts.

New risk management and insurance major As the industry seeks out profitable growth and new horizons, it is critical that the right talent and skills are available to support this. In the face of new and emerging risks, as insurance roles evolve and become more complex, different and deeper skillsets will be essential. Skillsets will also need to be widened as technology and financial services converge. To this end, I am glad to announce that the Nanyang Technological University will be launching the Risk Management and Insurance major next year. BIS central bankers’ speeches  5  Beginning in August 2016, this new Insurance major will be structured as a major specialisation under the NTU Business Degree. It is expected to produce 50 new graduates every year starting from 2018, providing a strong and sustainable talent pipeline to support industry growth. Alongside a robust curriculum, the students will get to build up their research, analytical and modelling capabilities, through working on research projects like the Nat Cat DAX and Cyber Risk Test-bed. Conclusion Insurance will continue to increase its relevance in an uncertain world. In these times of new risks, capital and technology, it is not sufficient to rely on a red ocean strategy. We need to open new horizons, and open them together. MAS will be a partner of the Singapore insurance industry as you forge a blue ocean strategy, manage risks and capitalise on the opportunities in the new reality.
The Yom Kippur War followed two years later, with the OPEC countries’ oil embargo and the first oil crisis. The sharp increase in oil prices led to stagnation and higher unemployment in Western economies. At the same time, inflation took root in many countries. This was the prelude to two decades where the Norwegian economy was marked by instability and high and variable inflation, with subsequent job losses. It took twenty years to bring inflation under control and achieve stable growth in employment, with stable real wage growth and low unemployment. It is important not to forget what went wrong in this long intervening period. At the beginning of the 1970s, the Norwegian economy was still characterised by the strong direct control and regulation of the post-war period. Important elements were: •  fiscal policy oriented towards full employment;  •  credit regulation within limits specified in a separate credit budget;  •  channelling of loans through the state banks;  •  regulation of cross-border lending and other capital movements;  •  low nominal interest rates stipulated by the government authorities;  •  a fixed, though adjustable, krone exchange rate;  •  use of price regulation;  •  an active business policy through state ownership and state grants and subsidies. These developments culminated in the 1973 proposal to establish an incomes policy council. According to the proposal, the social partners would undertake a commitment through the council to keep negotiated wage increases within specific limits.

We applied what we understood to be the lessons from Japan, though with hindsight, perhaps not in every respect as completely as we could have. In particular, Japan’s experience reinforced the lessons of the Great Depression here in the U.S. and made us sensitive to the disinflationary force of an asset price bust and financial  4  However, research suggests that the purchases did reinforce the forward commitment. See, for example, “Policy commitment and expectation formation: Japan’s experience under zero interest rates” Kunio Okina and Shigenori Shiratsuka North American Journal of Economics and Finance, Vol 15, No 1, pp 75–100. 5  See, for example, “Deleveraging and Monetary Policy: Japan Since the 1990s and the United States Since 2007”, Kazuo Ueda, Journal of Economic Perspectives, Vol 26, No 3, Summer 2012, pp 177–202. 6  Some commentators prefer the term “North Atlantic financial crisis” as the failure and near-failure of financial institutions was concentrated in the U.S. and Europe. However, the crisis was global in the sense that financial markets transmitted the shock throughout the world and this resulted in a severe global economic downturn. BIS central bankers’ speeches  3  crisis. We recognized that we had to be very aggressive to prevent deflation and deflation expectations from becoming well entrenched. The Federal Reserve reduced short-term interest rates to nearly zero by late 2008 – a little over a year and a half after the initial shock hit in August 2007.