samchain/econo-pairs-v1 huggingface dataset:
On the other hand, what effect would it have on confidence in the inflation target if we allowed a long time for the adjustment? How long can inflation deviate from the target without this affecting confidence and without the inflation target being perceived as meaningless? These are difficult questions that I know we at the Riksbank are not the only ones to be reflecting on. I would very much like to hear your thoughts and reasoning on this. Safeguarding confidence in the inflation target is of central importance for monetary policy. I therefore believe that the best means of managing these concerns is to be open and clear with regard to the analyses produced and the decisions made on the basis of these analyses. I believe that this will in the long run create the best conditions for the policy to be accepted and to win confidence. Thank you! 6  BIS Review 25/2006

It is highly likely that pricing behaviour in a low inflation regime differs from that when inflation is high. Another circumstance worth mentioning is that both external and domestic competitive pressure have increased and led in many cases to downward price adjustments or just a slow increase. The most recent figures for inflation are one of several illustrations of this phenomenon. While this is strictly speaking a matter of a series of one-off effects, the increased competition can continue to leave its mark on the general price level for some time to come. Another point worth noting is the prominent part that investment has played in the Swedish economy over the past six years. Increased investment tends to generate higher productivity growth. That in turn raises expectations of future corporate profits, which often leads to higher share prices. Higher corporate valuations stimulate additional investment by the firms in question and also give enterprises better access to risk capital for further expansion. Meanwhile, share-owning households perceive an increase in the net value of their assets. Increased wealth and optimistic expectations lead in turn to a stronger growth of consumption. BIS Review 41/2000  2  In this way, a growth process that is driven by investment can create a good circle. The supply side of the economy generates increased demand and a favourable composition of demand tends to strengthen the supply side still more. In the twenty years from 1974 to 1993, the annual growth of labour productivity averaged only 1.4%.
Regular information exchange and better coordinated oversight among supervisors to address home-host issues of internationallyactive institutions, and to identify emerging systemic risks, are thus recognised to be the important focus of effective cross-border surveillance and crisis management. Recognising the need to mobilise stronger international cooperation in the pursuit to preserve financial stability in an increasingly global operating environment, the Islamic Financial Stability Forum (IFSF) was recently established based on the recommendation of the Task Force of Islamic Finance and Global Financial Stability. The IFSF is to serve as a strategic platform for the regulators to deliberate common issues and to collaborate endeavours in achieving financial stability in the Islamic financial system. This represents yet another milestone in the development of the institutional infrastructure for Islamic finance, complementing the important roles and functions of the IDB, the IFSB and the AAOIFI. As Islamic finance becomes a growing component of the international financial system, it will become important for the ongoing global engagement by the international community that is driving the financial reform agenda to be extended to the perspectives of financial stability in the Islamic financial system. The IFSF would be able to facilitate the process of greater interface between regulators of conventional and Islamic finance to take place given the common goal of preserving global financial stability. Ladies and gentlemen, Let me now turn to the final point on major implications of the global financial reforms on Islamic finance – in the area of liquidity risk management.

Christian Noyer: Interview in Handelsblatt – “A government bond buying programme can only be implemented if the majority of bonds continue to be held by private investors” Interview with Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, in Handelsblatt, conducted by Mr Thomas Hanke and Mr Daniel Schafer, published 13 January 2015. *  *  *  The Governor of the Banque de France discusses the impact of the forthcoming Greek elections on the ECB’s government bond buying programme, the terrorist attacks and the overly slow rate of reforms in France. This interview with Christian Noyer, member of the Governing Council of the ECB, took place two days after the terrorist attack on the newspaper Charlie Hebdo. Mr Noyer, the French people’s reactions to the terrorist attacks have impressed all of us Europeans. What could be the political and economic consequences of this new threat? Christian Noyer This was clearly seen as an attack on freedom. The strong reactions remind all of us, European citizens, that we have a long-term project for Europe based on common values. These common values are much more important than the difficulties we sometimes have to agree on regarding the proper technical way to achieve this or that.
HOW LOCAL BUSINESSES CAN POSITION THEMSELVES TO TAKE ADVANTAGE OF THE OPPORTUNITIES ARISING FROM THE ABOVE   Local businesses should take advantage of the improved confidence in the Zambian economy to access cheaper credit from the international capital markets;    Higher domestic incomes imply higher domestic demand; thus local producers can take advantage economies of scale from increased production for the domestic market;    Local businesses should also take advantage of the opening up of new mines and the establishment of MFEZ in adding local content to the products. This will entail making local products and services more competitive. 6  BIS central bankers’ speeches

This would be translated into a need for more qualitative foreign direct investments, which in turn, would contribute to a steady growth of exports. To this end, taking advantage of the global environment, which is constantly searching for new markets, I would suggest a more qualitative national marketing strategy. This strategy should highlight professionally and contemporarily, all the recent incentives and the multiple opportunities Albania provides. Also, I think it is just the time to integrate even the joint regional projects into our long-term development plans. Road infrastructure, energy, communication, tourism and other areas are still underdeveloped in regional level. Therefore, I assess that regional projects of strategic nature raise the interest of domestic and foreign investors. If taken separately the economies of the region are relatively small, but altogether they form an attractive market, with more investment opportunities. In recent years, it is noticed that the penetration of foreign investments in our region is relatively small and mainly, it reflects the privatization process of important public properties. The same thing has occurred to the Albanian economy. More concretely, during 2000 – 2006, the overall foreign direct investments, according to the balance of payments statistics, are estimated to about USD 1.45 billion, about 3.5 percent of GDP realised over the same period. If we would identify the reasons why FDIs inflows are so modest, we might mention the complex problems characterising our region, while different reasons that reduce the absorbing capability of our economy exist even in the national plan.
Foreign exchange intervention is carried out in support of the monetary policy objective of price stability and not for any macro-financial purposes. There is no explicit inflation target but the track record of keeping core inflation relatively stable and, on average, just below 2% over the last thirty years has underpinned the MAS’ policy credibility. Fiscal policy seeks to promote macroeconomic stability, sustained economic growth, and social equity while maintaining a balanced budget. It is set by the Ministry of Finance (MOF). The Constitution prohibits the use of public debt for government expenditure except for a narrow class of long-term infrastructure projects. Macro-financial policy comprises essentially of macroprudential measures aimed at promoting a sustainable property market. These measures are co-ordinated across the MAS, MOF, and Ministry of National Development (MND). The macroprudential toolkit comprises loan-to-value limits, debt servicing limits, buyers’ and sellers’ stamp duties, and adjustments in land supply. In the movie “Everything, Everywhere, All at Once”, we are told that parallel universes exist because every life choice creates a new alternative universe. Thankfully, the global economy and financial system are not as complicated as the multiverse. But the real economy and the financial economy are like parallel universes with many transmission channels across these two universes that we are only beginning to understand. Achieving coherence across policies through an integrated framework is key to minimising the risk of repeated bouts of financial and economic crises feeding on each other. It is not easy but probably not as difficult as jumping across the multiverse.

[12] Brunnermeier (2023), “Rethinking monetary policy in a changing world”, in IMF Finance and  Development, March. [13] Borio and Disyatat (2021), “Integrated policy frameworks: the constraints of policy horizons and  adjustment frequencies”, SUERF Policy note 246. [14] Shirakawa (2023), “Time for change”, in IMF Finance and Development, March.
These are known as ‘transition risk’ and ‘physical risk’ respectively. In response, investors are increasingly keen to see those responsible for managing their savings take more forceful actions to support transition to net zero – channelling their holdings away from firms whose activities are seen as incompatible with that transition, and towards those whose are.10  For much of its history, the Bank of England has not itself been a direct investor in corporate assets. And, more recently, our primary engagement with the financial sector on climate issues has been to ensure that banks and insurers can manage their large transition and physical risks effectively, and in ways that do not threaten system-wide stability. In 2019 we became the first supervisory body globally to set formal expectations in this area. And this year we are conducting a system-wide exercise to assess its resilience to the sorts of climate scenarios shown in Chart 2.11  10  I discussed these trends in more detail in https://www.bankofengland.co.uk/-/media/boe/files/speech/2020/from-hot-air-to-cold-hardfacts-speech-by-andrew-hauser.pdf?la=en&hash=5D73B8F9748EC41ECFFAD676A6D1D71A93703E15 11 For more extensive information on the Bank’s work on climate change, see Climate change | Bank of England. 4  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  4  In 2016, however, the Bank’s Monetary Policy Committee (MPC) voted to purchase £ of sterling corporate bonds in the secondary market as part of a package of measures designed to ease monetary conditions following the referendum on leaving the European Union.

In historical terms, households’ interest costs are currently very low. That the low interest rates have increased households’ ability to take on bigger loans is one cause of the upturn in house prices. During the summer and autumn, the rate of increase in house prices appears to have been dampened somewhat in certain areas, but the rate of increase is still high. Monthly data show that the annual rate of growth for the whole country during the period July to September was 10 per cent. The developments in Sweden are by no means exceptional. Internationally, there are examples of countries which have seen sharper rises in house prices, such as Australia and the UK. But there are also examples of countries where the rate of increase has been lower, such as Germany. Recently, however, the international situation has become more mixed in that house price inflation in some countries, e.g. Australia and the UK, has slackened considerably whereas in others, including the US, it has continued to pick up. In Australia and the UK, the rate of house price increases dropped when the central banks there raised key interest rates, although this occurred with a slight lag in Australia. In the US, the rate of increase has continued upwards in spite of rises in nominal short-term market interest rates. Longer-term rates, however, have not risen to the same extent since the Federal Funds rate began to be raised.
Wage costs in Sweden rose considerably faster than in other countries in the 1970s and 1980s; competitiveness was restored by resorting to devaluations. It is not self-evident that shocks generated externally would hit Sweden more seriously than countries which are currently taken as given for EMU. So the risk of what economists call asymmetric shocks in Sweden should not be exaggerated. Moreover, when it comes to influencing production and employment in the event of major shocks, monetary policy has a limited capability. It may even be the case that independence in monetary policy increases the risk of self-inflicted shocks. In the longer run, monetary policy is not a substitute for the changes that need to be made, for instance to improve wage formation and the workings of the labour market. The Governing Board of the Riksbank will shortly be submitting an opinion on the Calmfors report. The arguments for and against EMU participation will be considered there at greater length. A general theme in the report is that every kind of decision - to joint now, to join later or to stay outside - entails risks and has a price. Although the report conclude that Sweden should wait joining EMU for the time being, not much is needed to tip the scales the other way, for example if EMU begins with more participants than the core countries or if the alternative of remaining outside does not confer any substantial freedom in monetary policy. But as I said, there will be occasion to return to this.

But this presupposes that, instead of again remaining outside, we participate in the contexts where developments are constructed. Opportunities and risks The idea behind a single currency in Europe is simple. One currency is better than many - it makes things work more efficiently. Eliminating the need to exchange currencies reduces transaction costs. The exchange rate stability facilitates trade and investment. A single currency makes price comparisons and economic estimates easier, not least for small and  BIS Review 14/1997  -2-  medium-sized companies. More direct price comparisons should lead in turn to stronger competition and downward pressure on prices, to the benefit of consumers. But risks are also involved when a single currency is introduced in so many countries with geographical, cultural and institutional differences. The Calmfors report has highlighted the insurance argument. I agree that this is an important point against EMU and therefore warrants particular attention. Monetary and exchange rate policy can be used as a kind of insurance against major, unforeseeable shocks in a single country. Without it, large adjustments may be required in other parts of the economy. However, when Calmfors and others claim that country-specific shocks have been more frequent in the Swedish economy than in the EU’s core countries, they are on uncertain ground. There are many indications that the shocks in Sweden have been occasioned above all by domestic economic policy and other institutional conditions, in the labour market and in wage formation.
It is marked by very frequent settlements (three settlement sessions a day at the National Bank of Poland), which ensures a brief settlement cycle and a closure thereof within a single working day. The exchange of payment orders between banks is effected only electronically. In addition to the ELIXIR system, KIR S.A. has recently launched the EuroELIXIR system (in January 2006, 34 banks including the National Bank of Poland and nine out of ten largest Polish banks participated in the system), designed to settle euro-denominated transactions, both domestic (with no amount-related limitations) and cross-border ones (up to 12,500 euro and, as of January 1, 2006, up to 50,000 euro). In the case of cross-border transactions, this can be achieved due to the National Bank of Poland’s participation in the STEP 2 and EURO 1 systems. Despite a relatively high level of development of the Polish payment infrastructure, it is hardly used by individual consumers. Poland has witnessed a significant progress in the development of e-banking over the past few years; however, compared to other EU Member States and the neighbouring countries, our position is still weak, taking into account the number of customer bank accounts and the number of non-cash payments by payment cards. For instance, in terms of the number of transactions at POS terminals per one card issued in Poland, we rank extremely low vis-à-vis other EU Member States. In 2004 in Poland, approx.

In the UK, moves have recently been made to improve the competitiveness of SME finance; I believe that the new Basel framework could in turn be a positive contribution to banking stability but we stand ready to monitor developments. Although this conference is essentially about the issue of banking capital, I would like to end by emphasising that capital is only one component of banking stability; many other factors also come into play. In the field of prudential regulation, I would like to highlight two: valuation and provisioning frameworks, and liquidity management and regulation. There will be little point to all the Committee's work on risk sensitive capital measures if this is not underpinned by adequate loan valuation and provisioning practices - preferably ones which incorporate a forward-looking view of risk and deterioration in loans. A lot of valuable work has been done on loan provisioning by the Basel Committee and other bodies, and I welcome the debate that is currently being sponsored by the IASC on valuation frameworks. 4  BIS Review 29/2001  Secondly, adequate liquidity is a vital counterpoint to capital for banks; the regulation of capital adequacy and liquidity are interrelated. Rationally, solvency ought to be a guarantee against funding problems, with customers happy to roll over deposits where they are confident that a bank is soundly capitalised. But reason does not always prevail, in part because solvency is sometimes hard to ascertain, more often because, swept along by animal spirits, markets can behave emotionally and perversely.
This is partly due to increased trade and a shift in imports towards low-cost countries. The rise in prices for domestically produced goods and services pushed up CPI-ATE inflation until this year. Since the beginning of the year, domestic inflation has edged down, hovering around 1.3 per cent. The rise in prices has been lower than expected for both goods and services. There may be several factors behind the low inflation rate. Strong competition between various producers within the food industry and the construction industry may have had a dampening impact on inflation. In addition, productivity growth in retail trade has been high in the past few years. Intensified competition may also have contributed to curbing the rise in prices for banking and insurance services. Global growth has been high in recent years. In the US and in China, growth has been high for a long period. Growth picked up in Japan last year, and this year conditions are conducive to increased  BIS Review 90/2006  1  growth in the euro area. Growth in China is expected to remain strong and contribute to pushing up growth in the global economy. Growth in the US is expected to be somewhat lower. Against this background, it appears that GDP growth among Norway’s trading partners will be high again this year and remain firm over the next few years. However, the housing market in the US has weakened more than expected in recent months, and the uncertainty associated with economic developments in the US ahead has increased.

The more we thought about it, the more we were adamant to take this ‘road less travelled’, premised on a very clear objective which was to test how digitalisation and technology could be leveraged as a driver for inclusive financial services. Our work under Project Greenback 2.0 were not limited to the city of Kota Kinabalu alone. We covered Keningau, Inanam, Tenom, Kunak, Tawau. Some of these areas are remote, and admittedly, only a few of these I have visited myself. Our work also brings us to this beautiful city of Sandakan, where we gather this evening. It is my great pleasure to extend a warm welcome to all of you to the Closing Ceremony of the Project Greenback 2.0 Kota Kinabalu. Our utmost appreciation goes to our guest of honor, Yang Berhormat Dato’ Wira Haji Amiruddin bin Haji Hamzah, Deputy Minister of Finance, for gracing this special event. Yang Berhormat Datuk Zakaria bin Mohd. Edris, Member of Parliament for Libaran, Dr. Firas Raad, Country Manager for Malaysia, the World Bank Group, Ms. Irina Astrakhan, Practice Manager, Finance, Competitiveness, and Innovation Global Practice, The World Bank Group, I would like to begin my remarks with two stories recounted to me by my Project Team, to remind us why the work that we have been doing for the past four years under the banner of Project Greenback, is important and meaningful. First, let me share a simple story that tells us about the true reality behind migration. This was during one of the events in Johor Bahru.