samchain/econo-pairs-v1 huggingface dataset:
The inflation target would have risked losing its role as anchor for pricesetting and wage-formation if we had not cut the repo rate in 2014 and 2015. With regard to my thoughts on going forward, I would like to begin with the monetary policy meeting on 10 February. The report presented then stated that resource utilisation in Sweden was assessed to be at a normal level. The members of the Board agreed that the important thing for monetary policy is for the trend in inflation to come closer to the target and to avoid weakening confidence in the target. The upturn in inflation is expected to continue to be fitful and there may be surprises along the way. Whether, and if so how, monetary policy will react depends on the causes of such surprises and how they are deemed to influence the outlook for inflation. We were also agreed that we shall maintain a high level of preparedness for action, even between the ordinary meetings, in case further measures are needed to safeguard confidence in the inflation target. Exactly how tolerant we are with regard to different outcomes may vary somewhat on an individual basis, which is natural on a committee. In my contribution to the debate at the meeting I wanted to say that I now have a greater tolerance for setbacks, in that we now have a more favourable situation in Sweden. I do not see this as advocating a new monetary policy strategy for the Riksbank.

Greater participation in a market increases liquidity and makes that market more attractive still. Second, since firms can switch from one electronic trading platform to another, and since they can also often access exchanges cross border, broadly speaking any exchange can potentially compete for the business of any firm. This creates greater competition between exchanges to maximise their trading volumes and realise economies of scale. It also means that an exchange which offers a more advanced trading system can win business, even from established rivals, provided it can reach a critical level of liquidity. So electronic trading makes markets more contestable and puts greater pressure on exchanges to update their technology and offer an attractive overall ‘package’ to users. Third, technological change means that distinctions between exchange traded and OTC markets are becoming more blurred. As exchanges adopt electronic trading platforms, and in some cases  5  BIS Review 43/1999  demutualise, they become less akin to associations of particular types of firm and closer to being competing providers of trading, and perhaps even clearing and settlement services. At the same time, many traditional OTC markets are moving away from pure, decentralised bilateral trading to establish some common market infrastructure. So for example, in the foreign exchange market, most trading now occurs over electronic platforms provided by Reuters or EBS. Another example is that the London Clearing House is establishing Swapclear as a central counterparty clearing house for OTC derivatives.
In February this year the interest rate was raised by a further quarter of a percentage point to 3.25 per cent. At the most recent monetary policy meeting on 3 May we decided to keep the repo rate unchanged. At the same time, our assessment was that the repo rate will need to be raised gradually, which we had also assumed earlier. Now we believe that it will need to be raised more than was anticipated in February. This is necessary so that inflation will develop in line with the target. The main reason why we need to revise our forecast upwards is the outcome of this year’s wage bargaining rounds. The central wage agreements have been slightly higher than we had earlier had reason to believe, given that unemployment is still quite high in Sweden. Some forecasters have believed in a higher interest rate path than we have predicted. However, this does not appear to be because their forecasts for wages or fiscal policy have differed substantially from those made by the Riksbank. I would also like to point out that so far there are no dramatic differences in our picture of current economic developments today compared with February. We will return to this in the Monetary Policy Report to be presented in June with a more detailed account of how we view the situation.

To reach that goal we have based our monetary policy on two “pillars”. As regards the first “pillar” we have set up a quantitative reference value, namely 4.5%, for the growth of the broad monetary aggregate M3; last December, we have confirmed this rate of growth of 4,5 % as an important factor for stabilising expectations. It should be noted that the concept of a reference value does not imply a commitment on the part of the Eurosystem to mechanistically correct deviations in monetary growth in the short term. However, the reference value for M3 is consistent with, and helps to maintain price stability over the medium term. The second pillar of the monetary policy strategy is a very comprehensive set of indicators that are important in our eyes in signalling future price developments in the euro area. This strategy, which ensures a great deal of continuity with the monetary policies of the participating national central banks, appears to have been understood by financial markets and the public at large. In particular, the yields on long-term bonds denominated in euros indicate clearly that the Eurosystem has kept intact the legacy of credibility that it has inherited. d/ Finally, the credibility of the euro also results from the Eurosystem’s constant efforts towards transparency and communication. I must stress here that the Eurosystem is one of the most transparent central banks in the world.
The development of our domestic financial markets, and the more liberalised environment has contributed to increased two-way flow of funds. These two-way flows have promoted the orderly functioning of our foreign exchange market. In addition, the more diversified financial markets have in turn reduced our vulnerability to extreme volatility. These transformations have brought about significant payoffs for our nation. Today, the income per capita exceeds USD7,000, double of what it was seven years ago in 2001. With the increased resilience, the future prospects remain positive with the economy on a steady growth path going forward. There is however, significant uncertainty in the global economy in the current environment, with some of the largest economies in the world bracing for slower growth and continued turmoil in the financial markets. In addition, rising inflationary pressures in the global economy arising from high energy, commodity and food prices has resulted in the erosion of the purchasing power. Despite a slower performance in the external sector the continued expansion of the Asian economies is expected to be sustained. Growth is predominantly supported by strong domestic demand and the increased intra-regional trade and investment activities. A more recent phenomenon is the increased mobility of labour in the region. Increasingly, talent from our region have ventured beyond domestic borders. This trend is not limited to our immediate borders but also to more distant emerging and developed economies.

The rapid changes that are taking place in our environment thus demands new skills and ability to manage new challenges and capitalise on the new opportunities. Indeed, the role of leadership has changed. Leaders not only must able to see the new emerging opportunities, but also to be able to deal with the high level of unpredictability. The industry leaders need to  BIS Review 37/2008  3  be visionary and comprehend future trends, chart strategic directions and adapt to change. Effective leaders in this era, will be those who are continuous learners, who are on the cutting edge of excellence, and who have the humility to recognise the need to reinvent themselves and inspire their organization to adapt to the new environment. The investment in human capital development is thus important for future survival. Human capital development has become of strategic importance and is integral to the success of an organisation. This needs to occur at all levels of the organisation. Senior executives need to take the lead and devote a considerable amount of their time to this initiative. Human resource development functions is integral to the talent management process and in supporting the human capital management strategy. Let me conclude my remarks. The inclusion of women into mainstream economic activity is no longer an option, but a prerequisite for sustained economic development. The strive therefore has to be to provide the enabling environment and to set the standards so that the new multi-polar world will be a more inclusive one.
It is also clear that restructuring and recapitalising the savings banks is in the offing, and this could also pose some risk. The risk that had accumulated in the Icelandic financial system prior to the crash has materialised, however, and it is unlikely such a situation will arise again in the near future. Broadly speaking, the risk in the system should abate over time, particularly if reforms of the regulation, supervision, and governance of the financial system are well and speedily implemented. 4  BIS Review 136/2009

Despite almost 10 years of ultra-easy monetary policy, and despite stronger growth and better labour market conditions, some countries are still devoid of inflation. This latest enigma of “missing inflation” has further spurred the search for the next best thing after inflation targeting. It has become increasingly clear that the nature of problems facing policymakers and the underlying heuristics are becoming very complex. What we thought we knew about inflation dynamics has been inadequate and has not factored in many other relevant factors. Inflation dynamics have evolved with structural factors such as the global value chain, demographics, technological advancements and the digitalisation of the economy. In such a dynamic environment, it is only logical to think that one must be pragmatic, flexible and agile. This is why we focused on inflation anchoring without being tied to a single numerical target. To effectively do this, our monetary policy framework will take into account a broader consideration of factors that could affect the domestic economy and financial system. It also allowed us some flexibility to monitor how our monetary policy actions could interact with key issues facing the public, such as distributional implications, cost of living, access to financing and financial inclusion. As we understand these interactions better, our responses, including monetary policy decisions, can be more nuanced and effective. Malaysia’s policy approach has remained relevant Inflation anchoring was not the only thing we did differently. In fact, Malaysia has never shied 4/7  BIS central bankers' speeches  away from taking the path less travelled.
Sharp fluctuations in market rates are a possibility. This is a fact banks must bear in mind when managing interest rate risks. BIS Review 86/2005  3

I hope that sharing the Bank’s experience will reinforce the current initiatives you may have in your organisations and perhaps even trigger some new ideas about what more we all can do to achieve gender equality in the industry. Lessons from the Bank’s diversity and inclusion initiatives Diversity is not a one hit wonder: focus on the whole process from recruitment to development to promotion The Bank recognises that how it recruits affects whom it recruits. From school leavers to career returners, the Bank has programmes to attract diverse talent at each stage of life. To help develop the next generation, the Bank is working with schools to encourage a more diverse set of students to study economics and finance. We provide free classroom materials for students aged 11‐16 to equip them with the analytical skills to make informed financial decisions, using real‐world examples, captivating videos and accessible case studies.7 By the end of 2018 we had reached 90,000 students through our “EconoMe” programme, one quarter of all state secondary schools in the country. In an attempt to inspire children into finance, over the past year we have also made more than 300 school visits, of which 75 were by the Bank's policy committee members. 5  Farmer, H, McKay, R, Tsakiris, M, Trust in Me (2013): “Trust in Me: Trustworthy Others Are Seen as More Physically Similar to the Self”, Psychological Science. 6 Kahneman, D (2012) “Thinking Fast and Slow”, London. See also Sunstein, C.R, Hastie,R (2014), “Making Dumb Groups Smarter”, Harvard Business Review, December.
Will Poland, for instance, become a healthcare centre for the aging Europe, or a global centre of outsourcing of business processes, which require a fluent command of several languages, or will it become an American silicon valley or an Indian Bangalore in IT services of the highest value added? How long will the car factories built over the past years in Europe and Poland and their co-operants stand the fast growing competition of China? It seems that we are in an exceptional period of the world economic history. The forthcoming years and decades will shape the economic world map anew, which will reflect the demographic trends, migration, and the growing globalization of manufacturing and services. Poland has a great chance to use the forthcoming global changes to improve their income and the standard of living of its citizens, and to mark its significant position on the new economic world map. Answers to the questions raised above and to many others, as well as drawing proper conclusions from those answers for the economic policy should endorse such chance, which I wish to this and the future generations of global Poles. Thank you very much for your attention. BIS Review 64/2006  11

Mr. Lamfalussy reflects on the possibilities and constraints of monetary policy against the background of price stability in Europe Address by the President of the European Monetary Institute, Baron Alexandre Lamfalussy, on the occasion of the change of the presidency of the European Monetary Institute in Frankfurt am Main on 30/6/97. The moment has come for me to say a heartfelt “thank you” to you all! I should like to express my gratitude, first of all, to the governors of the central banks of the European Union, who, in the autumn of 1993, chose me as their candidate for the presidency of the European Monetary Institute, thereby setting in train a process which has allowed me to play a part in a ground-breaking enterprise of exceptional scope and responsibility. I should like to thank them, secondly, in their capacity as members of the EMI Council, for their cooperation in this undertaking and for their wisdom, prudence, willingness to compromise but also their will to achieve results. They have invariably acted with the utmost professionalism. I should like to add that we should not have been able to achieve what has been done without the conviction - which each of us shares - that the first duty of a central bank is to maintain price stability. This fundamental principle has never been a matter of dispute. My thanks go next to the political authorities.
Consumption growth is also expected to moderate in the years ahead. Wide fluctuations in asset prices may be a potential source of instability in demand and output in the somewhat longer run. House prices and household debt have risen sharply since the mid-1990s. Developments in the 1990s can probably be viewed to some extent as a delayed adaptation to the deregulation of the housing and credit markets in the 1980s, after many households burned their fingers immediately after deregulation. In recent years, household income growth has been solid, household confidence regarding the future has been strong and households probably perceive higher  4  BIS Review 35/2006  income levels as permanent. This may have resulted in a further rise in house prices and debt. In addition, low real interest rates are currently making a contribution. In countries whose credit markets have been liberalised for a long period, for example Denmark, where credit markets were liberalised over a hundred years ago, the debt-to-income ratio for households is higher than in other countries. Monetary policy assessments Since last summer, interest-rate setting has been oriented towards a gradual increase in the interest rate – in small, not too frequent steps – towards a more normal level. According to the assessment in the March Inflation Report, higher growth in the economy could, in isolation, warrant a faster rise in the key rate ahead. This would reduce the risk of bottlenecks in the economy, with rising cost inflation and continued debt build-up.

BIS central bankers’ speeches  1  •  But Mark is one of the few who understand both worlds well, equally versed in the big, strategic issues related to macroeconomics and monetary policy and the nuts and bolts of financial markets and regulation. •  It is this combination that has enabled Mark to bring to our meetings a breadth of vision and depth of insight that make people sit up and listen. •  He has a knack for “herding the cats” as it were, bringing people together and finding consensus in the cacophony of views that international meetings are noted for. •  And Mark does this with a cheery disposition, a witty sense of humour, and considerable charm. Ladies and gentlemen, please join me in warmly welcoming Mark Carney. 2  BIS central bankers’ speeches
In recent months, there have been increasing evidence of strong gains, a rebound in the financial markets with renewed interest in emerging market, active capitalization by banks, and the reopening of wholesale funding markets. While the Malaysian financial system has fared relatively well throughout this global crisis and remaining financially sound, well capitalised and able to withstand the current challenging global financial environment, there are however, many lessons that we can learn from the current international financial crisis to ensure the sustainability of this resilience. The development of Islamic finance in Malaysia that operates in parallel with conventional finance for almost three decades now has demonstrated its sustainability as a form of financial intermediation. Today, the Islamic banking system has emerged as a vibrant financial system with Islamic banking assets currently accounting for 18.8% of the total banking assets of the Malaysian financial system. The product range has now expanded into an extensive range of innovative instruments while in the Islamic capital market, the sukuk market has surpassed the conventional market in terms of market share. An important aspect that has contributed to financial stability in the overall financial system is the conscious policy to develop a more diversified financial system that allows for the diversification of risks. Potential of Islamic finance in contributing to global financial stability This current global financial crisis has prompted a search for an enduring solution to ensure the stability of financial systems.

The challenge before us is to build a new financial architecture that would allow for the more efficient functioning of not only financial intermediation within national economies but also across borders. Islamic finance, with its emphasis on a strong linkage to productive economic activity, its inbuilt check and balances and its high level of disclosure and transparency offers this. Indeed, inherent in Islamic finance is the explicit elements that address several of the issues that have surfaced in the conventional financial system during the current crisis. At the centre of this recent global financial crisis was the breakdown in governance that led to indiscriminate lending, excessive risk-taking and overzealous financial innovation. This is avoided in Islamic finance with the requirement that Islamic financial transactions must have an underlying economic activity  BIS Review 152/2009  1  and that the process of innovation and formulation of Islamic financial products and services must be done carefully and in accordance with Shariah. The crisis has provided an important lesson that the development of new financial instruments embraces this process while being able to effectively compete in the global arena. Strengthening the Islamic financial system As Islamic finance becomes an integral part of the global financial system, it has become increasingly exposed to the systemic implications of external developments. There is the risk of the contagion effects arising from financial and economic disruptions that emanated from the conventional markets.
We also call upon other industry players in the financial sector to emulate our noble contribution in building human capital and research capacities at this important institution. This is important to ensure that our financial sector operates at the cutting edge of knowledge and innovation. I have no doubt therefore, that such investment will yield returns in the long run as knowledge is a secure investment. I thank you for your attention. 2  BIS Review 91/2010

The committee is chaired by the Chief Executive of the HKMA and comprises members coming from multiple functions including monetary management, banking supervision, research and macro surveillance. 1/3  BIS central bankers' speeches  6. Some commentators have criticised the HKMA’s macroprudential measures as being ineffective because they have not been able to arrest the rising trend of property prices. This is a misunderstanding of the objective of the HKMA’s macroprudential measures. The objective of the HKMA’s measures is not to tame property prices. Instead, they are aimed at strengthening the risk management of banks and thus safeguarding long-term banking stability. In this regard, it is worth noting that the average LTV ratio of new residential mortgage loans has been consistently lower than 60% while the average debt servicing ratio of new mortgages has been consistently lower than 40%, suggesting that the banking system has built in buffer to safeguard its resilience. 7. Competition dynamics: Mortgage products in Hong Kong are homogeneous, in the sense that from the mortgagor’s perspective it makes little difference which bank is offering the mortgage facility. There is therefore a strong tendency for banks to compete for market share by lowering their underwriting standards. With the macroprudential measures in place, however, banks can compete for mortgage business only in terms of pricing (e.g. mortgage rate). Against a backdrop of rising property prices and a consistently low delinquency rate of mortgage loans, many banks tried to outcompete their peers by pushing down the mortgage rate to record low levels.