samchain/econo-pairs-v1 huggingface dataset:
BIS Review51/2001  7  In the Bank of England, interest rate decisions are made by the Monetary Policy Committee, which has nine members. Four of the members are external economists appointed by the Chancellor of the Exchequer. In practice, they work full time for the central bank, but they are not part of line management. The Bank of England presents an inflation report four times a year. The report is prepared by the Bank’s administration, but the work is directed by the Committee. The report provides projections of economic growth and inflation. The Bank of England has developed a method that illustrates the Committee’s subjective view of the uncertainty associated with forecasts for GDP growth and inflation. Uncertainty increases with the time horizon, so that the illustration of uncertainty takes the form of a fan. This fan has gradually acquired a central role. The introduction to the report states: "Although not every member will agree with every assumption on which our projections are based, the fan charts represent the MPC’s best collective judgement about the most likely paths for inflation and output and the uncertainties surrounding those central projections." The Bank’s view of the outlook for the interest rate is not stated directly, but is implicit in the discussion of the fan around the inflation projection and an associated table. Twelve monetary policy meetings are held each year. Decisions taken are made public immediately, but without an explanation, and meetings are not followed by press conferences.

Mandate, interpretation and implementation 1  New Zealand was the first country to introduce an inflation target in 1989. Chile followed in 1990, Canada in 1991, the UK in 1992, Sweden, Finland and Australia in 1993 (Finland until 1998), Spain in 1994 (until 1998) and Iceland and Norway in 2001. A number of emerging market economies like the Czech Republic and Poland, as well as Israel, South Africa and Brazil, have introduced inflation 2 targets in the last few years. The ECB shall direct its monetary policy instruments towards price stability, which the bank has defined as inflation of less than 2 per cent. The target of the Swiss central bank has a similar formulation. In the US, price and employment stability are equally important. Experience with inflation targets has generally been good. Low and stable inflation has underpinned economic growth and employment. The fact that conditions were favourable for low inflation and renewed growth in many countries following the downturn and high unemployment in the early 1990s may also have contributed positively. Norway introduced an inflation target during a different phase of the economic cycle. We have experienced a prolonged upturn. The labour market is tight. High labour force participation and demographic conditions indicate that the possibility for further growth in the labour supply is limited. In addition, reforms that reduce the supply of labour were implemented.
Mojmír Hampl: Financial strangulation? Article by Mr Mojmír Hampl, Vice Governor of the Czech National Bank and a member of the EU's Economic and Financial Committee, published in The Wall Street Journal, Prague, 2 December 2008. *  *  *  Don't rush to change all the fire regulations while the actual fire is still raging. The reaction to the financial crisis should not be worse than the crisis itself. This is the mantra I've been repeating to myself – while shaking my head in disbelief at many ideas surfacing in the European and global debate on the "postcrisis" shape of the financial universe. The list of proposals that have appeared on the table so far is long and ranges from attempts to ban short-selling and regulate credit default swap markets to toughening up supervision of credit rating agencies, hedge funds or the whole sphere of structured financing. Capping executive pay – the easiest target for anyone searching for cheap political capital – is of course included. So are state efforts to micromanage banks, such as French attempts to set numerical targets for lending by recapitalized banks. For many people, these measures are the tolerable or even necessary by-products of fixing the crisis. At the top of the list, then, looms a concept of a brand-new, omnipotent, global (or at least European) super-regulator that would undoubtedly do everything better next time.

Ladies and Gentlemen, it is also our expectation that the bank will continue to support the SME sector in Zambia, as the SME sector is key to sustainable economic growth and development of the country. You will agree with me that SMEs have the potential to create many productive jobs and contribute significantly to our economy, if well supported. It is our expectation that Absa Group Limited, through Barclays Zambia, will continue with its efforts and strategies that promote financial system stability, support monetary policy, enhance financial inclusion and gender mainstreaming for sustainable development in line with the Bank of Zambia’s strategic objectives. Today, as we commission this site, it is my hope that the facility will be of highest standards and that the new premises will provide an environment for the provision of innovative financial solutions to the public as an endorsement of the Absa Group brand promise “Bringing Possibilities to Life.” Master of Ceremonies, distinguished guests, ladies and gentlemen, with these remarks, please join me in applauding the Board, management, and staff of Barclays Bank Zambia, and Absa Group Limited, for this initiative that will introduce convenience and world class banking services and facilities to its clientele. The timing of this project is also a good indication that the Absa Group is opportunity focused rather than challenges. We hope this will rub on to the other players in our economy as well. Thank you and God bless.
Alexandre A Tombini: Central banking – the next 50 years Introductory remarks by Mr Alexandre A Tombini, Governor of the Central Bank of Brazil, at a panel discussion to celebrate the 50th anniversary of the Central Bank of Brazil, Rio de Janeiro, 10 June 2015. *  *  *  Today’s panel discussion is part of a series of events to celebrate the 50th anniversary of the Banco Central do Brasil. Other events in the series have looked backward. Today we’d like to take advantage of the collective wisdom and experience of our distinguished guests to look forward: what can we expect in the next 50 years of central banking? This is an ambitious question, but an appropriate one as the art and science of central banking is currently in flux, and the outcomes of today’s policy debates and institutional innovations will shape central banking for many years to come. The global financial crisis has had a major impact on how we think about central banking. Before the crisis, there were, naturally, a number of unanswered questions and challenging issues for central banking, but the prevalent view was that the major pillars of the field were largely settled. In a growing number of countries, the operational regime for monetary policy was inflation targeting; monetary and financial stability objectives could be safely addressed separately; and floating exchange rates, coupled with robust international reserves and access to multilateral funding facilities, were often seen as sufficient to protect financial stability from excessive international capital flow volatility.

I have enjoyed throughout these many years, in a variety of forums and debates their always-to-the-point sharp remarks and so I hope that we can today benefit from their thoughts, thank you for being here Jacob, Jean-Claude and Axel. Ms. Adriana Arai will moderate the discussion. Ms. Arai joined Bloomberg News in 2004, and currently is executive editor for local language content and chair of the Bloomberg São Paulo Office Committee. Previously, she worked for Dow Jones Newswires in São Paulo, Brasília and London. Adriana, the floor is yours. BIS central bankers’ speeches  5
An effective system of AML, means advanced systems of information technology, especially on those parts that deal with the database of the clients, the aggregation of the information from any single point in the network, and those that enable the continuous monitoring and filtering of any bank transaction. For our institutions, especially for those that are not branches or subsidiaries of any stronger financial institution, those costs can be substantial and difficult to be absorbed. BIS Review 49/2005  1  Furthermore, we have been witnesses of a somehow difficult dialogue with the institutions that implement the law. I must say though that such a problem exists almost in any jurisdiction, including the most developed countries. But their attitude toward the abidance to the law, of constructive discussion of problems and of quick reactions in implementing changes, facilitates the solution of different problems. Dear bank directors, I do like though to consider the issue from what we as bankers, can contribute more in this process, in spite of above-mentioned difficulties. Furthermore, history shows that the cost of dealing with those difficulties, whatever their size in normal times, can be easily exceeded in instances of unusual events that are linked with scandals on ML.

Allow me to close this speech, thanking the co-organisers of this workshop, the Tirana office of FSVC and the Albanian Association of Banks. I thank in particular all the specialists of the commercial banks and of the non-bank financial institutions that took part in this seminar, for their valuable contribution on preventing money laundering in their institutions. I thank particularly the foreign experts, Mr. Farrell and Mr. Burnside, that accepted to share with us their valuable experience. I wish this workshop has also been for them an interesting event. Thank you. BIS Review 49/2005  3
Recently, the focus has moved partly away from pure studies of the effects of the income tax system to the combined effects on the labour supply of taxes and various benefit and social insurance systems. The focus has often been on people that work to a smaller extent, that are on sick leave or that are outside the labour force. We know from economic research that different types of compensation and benefit affect the individual’s reservation wage, that is to say, the wage level that primarily influences the individual’s decision to participate in the work force. The reservation wage varies from person to person and if the wage level offered on the market is lower than the reservation wage, the person chooses not to work. One can say that the individual values his or her time more highly than the market does. The relationship between the wages for work offered on the market and the individual reservation wage is thus a decisive factor in the decision on whether or not to work. It is easy to understand that the reservation wage will be affected by taxes, compensation levels in the unemployment and social insurance systems, rules for early retirement, etc.

The sensible application of judgement involves looking at a situation from several angles, and employing forward-looking tools such as stress tests. For us, “judgement” is most certainly not a slogan. So judgement by whom, how, and to what end are reasonable questions to ask. I am going to place most emphasis today on the “by whom” question, but use that to illustrate the others. I want to consider the role of Boards, but in the broader setting of three groups of people: Executive Senior Management of firms; Boards (with Non-Executives in the majority); and Supervisors. It is the job of senior Executives to exercise judgement on risks and returns on a day-to-day basis. I know that you could be confused to hear me say this given some of the things that are written about financial regulation, but we want firms to earn sustained and thus sustainable returns through the exercise of good business judgement. Senior Executives exercise that judgement within frameworks set by, and overseen by, their Boards, namely the overall strategy, the risk appetite and assessment frameworks and the oversight of controls and compliance. As supervisors we apply our judgement against our framework of rules and regulations, the distinctive feature of which is that they represent public policy objectives and thus the public good, which is the overall objective of the Bank of England. BIS central bankers’ speeches  1  I want now to focus on the role of Boards.
The need for fairness and transparency Banks are at liberty to impose such fees and charges, but it is essential that they should be fair and transparent in doing so. This is particularly the case if the banks are intending to get more involved in consumer and wealth management business where it is important to retain the trust of the customer. The banks cannot afford a bad image otherwise they may find their customers going elsewhere - for example, to internet-based financial institutions. As we have seen from some recent incidents, the banks in Hong Kong have been lagging behind in the provision of clear information to their customers about the cost of some financial products such as credit card advances. Moreover, there has been recent controversy about the provisions in credit card agreements that entitle the lenders to reclaim from debtors the full legal costs and expenses of recovering overdue debts. In a recent court case, the judge ruled that the relevant provisions were unconscionable and therefore could not be enforced. We have written to authorised institutions to ask them to review their terms and conditions in the light of the court’s ruling and to ensure that they are consistent with Hong Kong law. We have also initiated a review of the Code of Banking Practice with a view to strengthening the provisions on such issues as transparency in the provision of banking services and the proper and responsible use of debt collection agents.

Profits rose sharply and bad debts were lower. This means that the clouds that have hung over the banking system for the last two years have now lifted. But it would be wrong to conclude that life for the banks will go on much the same way as it did before in the golden years before the crisis. The competitive environment for the banks is becoming increasingly intense. Of course, you can argue that there is nothing new in this. The banking system in Hong Kong has always been competitive, which is one of the reasons it was able to cope with the Asian crisis. But competition in past years was taking place in highly buoyant conditions and within defined limits, reflecting in part the influence of the interest rate rules of the Hong Kong Association of Banks. 1  BIS Review 69/2000  The competitive environment Now things are somewhat different. A number of major players in the market, including some foreign banks, are competing even more intensely than they did before. Some of them have recently increased their presence in Hong Kong or are planning to do so. In some cases, this presence may be in virtual form as banks increasingly offer their services in whole or in part over the internet. This is part of a worldwide trend towards greater competition. But it is happening in Hong Kong at a time when lending growth has still not recovered along with the economy.
Commodity exports play a particularly important role in several of the countries that were the first to introduce inflation targeting. The objective of monetary policy is to safeguard the value of money in the long term, and seek to contribute to stabilising economic developments in the short and medium term. The most important contribution monetary policy can make to sound economic developments in the long term is low and stable inflation. The inflation target provides an anchor for economic agents’ expectations concerning future inflation. We have a very open economy with free capital movements. Stable inflation expectations also contribute to more stable krone exchange rate expectations. Inflation targeting means setting the interest rate so as to achieve a numerical target for inflation. Norges Bank sets the interest rate with a view to stabilising inflation at 2.5 per cent within a reasonable time horizon, normally 1-3 years. The more precise horizon will depend on disturbances to which the economy is exposed, and how they affect the path for inflation and output. The inflation target represents a framework for, not an obstacle to, monetary policy’s contribution to stabilising output and employment. We have chosen flexible inflation targeting, i.e. variability in output and employment as well as in inflation is given weight. The objective of monetary policy is low and stable inflation. The instrument is the interest rate. The interest rate influences inflation with a lag and with varying intensity. As interest rates fall, household and local government consumption and investment tend to pick up.

They include some reflection whether there is a need for more co-ordination and synergy between our policy dialogues with the IMF and the Commission; how the Commission’s fiscal surveillance (through Economic and Fiscal Programmes, Pre-Accession Economic Programmes, Convergence Programmes) can be deepened and serve more as a commitment device; how far there are lessons to learn about monetary anchors and prudential coordination mechanisms for the EU accession of our region; and how we – including the external actors – can foster stronger domestic anchors in various forms, ranging from medium-term fiscal frameworks to more effective policy co-ordination mechanisms. Finally, we will turn to the issue of capacity-building. This is a question on which we agreed, at this workshop, to already provide some operational input to the CEF as it develops its work programme in this area. There is a long lead-time in the effectiveness of capacitybuilding, although fortunately the CEF had already taken the initiative a few years ago to ramp up its contribution in areas such as financial stability and policy co-ordination, so it has a head-start. In the field of capacity-building, we need to consider: what are the top priorities, and where are the gaps to be filled through initiatives in terms of training workshops, technical assistance, and cross-country exchanges of experience. This will bring us to look carefully at the design and implementation of fiscal policy, among others, and the way policies come together through domestic co-ordination processes.
The implication is the need to cross-check the information on inflationary pressures and risks to price stability; this cross-checking implies that we bring together and compare different analytical strategies and that we use systematically all the information relevant to decision-making. Of course, monetary policy does not react mechanically to monetary developments, but rather responds to the information in monetary aggregates that is relevant for maintaining price stability over the medium term. This is the rationale behind the definition of "a reference value" for monetary aggregates. The monetary pillar supports a risk management approach to monetary policy. It allows for an early assessment and detection of potential imbalances. It sheds light on those risks at a longer time horizon than the one usually contemplated by monetary policy, but still relevant for the ultimate objective of price stability. This is of special significance and importance when financial imbalances build up in the economy, which are fueled by excess money or liquidity growth. Unwinding of those imbalances can be brutal and discontinuous – the so called non linear reaction – and, as such, very destabilizing. Empirical evidence suggests that asset booms have typically occurred when money and credit growth were above their long-term average. Whatever the loss function and ultimate objectives of Central Bankers, all would agree that monetary policy should not willingly contribute to the formation of such credit and asset booms.

BIS central bankers’ speeches  3  Norges Bank’s task is to promote an efficient and robust financial infrastructure. New decentralised technology offers the potential to increase the efficiency of our infrastructure. It is still early days, and we do not know what the outcome will be. But it is still worthwhile to take a closer look at the possibilities. Norges Bank will start work on assessing safety and efficiency, and other consequences of such solutions. We want dialogue with relevant operators in Norway and abroad. Both the authorities and market participants should assess the need for standardisation and regulation. The timing for introducing such measures must not impede development in an early phase. I look forward to an active debate. Many of the stakeholders participating in that debate are probably here today. Safety and contingency arrangements Technological advances also have implications for the security and contingency arrangements for our systems, which we as a nation must take seriously. Developments occur rapidly. Operators want to market new solutions to strengthen their competitive position, which is natural. But payment solutions do not function efficiently if they are not secure and if there is little customer confidence in the solutions. The payment chain includes many stages and they must all function. A chain is not stronger than its weakest link. Safety and operational stability must be adequately tested. Sound risk analyses are crucial. They provide a guide to risk-mitigation. Internet solutions have led to new criminal activities. Resource use to combat cybercrime is steadily increasing.