samchain/econo-pairs-v1 huggingface dataset:
He was determined to return the value of the krone back to its initial gold value, the nominal anchor of the time. That goal was achieved, albeit at a cost, namely weaker competitiveness, recession and high unemployment (Chart 1).2 The policy of gold parity illustrates that it can be costly for monetary policy to have its eye overly focused on a numerical target. 1 Eitrheim, Ø., J.T. Klovland and L.F. Øksendal (2016) A Monetary History of Norway, 1816-2016. Cambridge University Press. E. Lie, J.T. Kobberrød, E. Thomassen and G. F. Rongved (2016) Norges Bank 1816–2016. Fagbokforlaget. 2 Grytten, O.H. (2008) “Why was the Great Depression not so Great in the Nordic Countries? Economic Policy and Unemployment”. Journal of European Economic History, 37, 369–393, 395–403. 2  NORGES BANK  Chart 1 Gold parity led to weaker competitiveness and higher unemployment Realexchange exchange Real rate.rate  Unemployment. Percent Unemployment. Percent  120  120  115  115  110  110  105  105  100  100  95  95  90  90  85 80 1924  80 1926  Source: Eitrheim et al. (2016)  Source: Eitrheim et al.

11  Looking further ahead, developments in global financial markets will have a considerable impact on the GPFG. Higher inflation and signals that interest rates will be raised faster than markets expected have recently made investors uneasy. The long equities bull market may be nearing an end. In a transitional period, higher interest rates will also reduce the value of the GPFG’s fixed income portfolio. NORGES BANK ECONOMIC PERSPECTIVES 17 FEBRUARY 2022  Developments ahead may also be marked by demographic changes, tension between countries and lower global trade integration. Moreover, we are facing a necessary transition to a low-carbon economy. Whatever happens abroad will still leave its mark on the GPFG. No investment is completely safe, as history has shown. In 1904, the Norwegian government set funds aside in the State Reserve Fund to be used only “in extraordinary circumstances or in an emergency”. When it was dissolved in 1925, it was nearly empty. Creative accounting must take some of the blame. Yet it didn’t help either that it was invested in only a few assets – mainly UK, French and German government bonds – investments regarded at the time as absolutely safe. After the First World War, the value of German and French government bonds was close to zero, wiping out much of the State Reserve Fund’s assets.5 The investment strategy behind the GPFG stands in stark contrast. The fundamental principle underlying the strategy is risk diversification. This lessens the potential for an across-the-board value decline in GPFG assets.
Robust compliance function The compliance function of a financial institution is an important element in mitigating risks of abuse of the financial system, especially financial crime and terrorism financing risks. To this end, financial institutions are expected to ensure that the compliance function is independent and have sufficient authority, stature and resources to perform its function effectively. The required AML/CFT compliance program of each institution must clearly describe and outline the roles and responsibility of different segments of the institutions with respect to its compliance function. In this regard, the principle of collective responsibility between senior managements and compliance officers should be upheld in the case of failure. In compliance, continued vigilance is necessary and required. The 2017 National Risk Assessment, by the National Coordinating Committee for Money Laundering (NCC) and the financial sector, showed that the banking sector continues to face high money laundering risk and medium high terrorism financing risk. The sector records the highest value of cash transactions and high risk customers; and provides the highest number of high risk products compared to other sectors within the financial industry. This reflects the central role of the banking sector in intermediating money flows within an economy. One important compliance function that needs to be undertaken is the identity of the ultimate beneficial owner of companies, assets and financial transactions. Financial institutions need to have controls and procedures to identify, verify and conduct due diligence on the beneficiaries. This must be complemented by a rigorous monitoring process.

Conclusion I spoke at length today about the responsibility that we have to combat crime and the ways to do so. Let me end by saying that eradicating financial crime makes good business sense. Financial crime is a cost and burden to all of society. Robust governance and greater transparency is good for business. It creates an environment of trust and a level-playing field for businesses to flourish. This is important as we seek to ensure longevity and continuity of businesses and the health of the economy as a whole. Therefore, let us be united in working for a better and brighter future for Malaysia. Greater governance and transparency will get us there. Thank you. 5/5  BIS central bankers' speeches
As Asia’s infrastructure is still at an early stage of development, we have an opportunity to harmonise practices while making the changes needed to respond to emerging global regulatory reforms. It is heartening to note that Asian regulators are working closely on OTC derivatives regulations. A good example was the joint letter from Singapore, Hong Kong and Australia to the US CFTC, expressing our concerns on the extra-territorial application of the US rules. II. Harnessing technology to transform Asia’s financial infrastructure in a gamechanging fashion  21. Regulators everywhere are confronted with highly connected global markets. Collecting and managing information is now a core competence in itself, for effective surveillance of the financial markets. Similarly, market participants are making greater use of technology in risk management – performing complex portfolio valuation and mitigating risks such as through intra-day margining at CCPs, and often across global books and in multiple time zones and jurisdictions. Moving collateral across markets swiftly and efficiently is also now a core competence. 22. Besides risk management, technology can be useful in developing liquidity in Asian markets. It can bring greater pricing efficiency and transparency, as we are seeing in the US and EU financial markets as trading moves to electronic platforms. 23. In Asia, there is room for our financial markets to embrace greater “electronification” of trading, notwithstanding our smaller markets.

In line with developments elsewhere in the world, the Swedish purchasing managers index for October also showed a positive development. The expected upturn in private consumption is confirmed by new information, in this case turnover in the retail trade sector. The picture of a gradual, cautious strengthening of the labour market is also supported by incoming data regarding, for instance, new job vacancies, redundancies and companies’ recruitment plans. Employment appears if anything slightly stronger than was expected," said Mr Heikensten. “Inflation in the Swedish economy has been low since the end of 2003. According to the most recent data, for October, annual inflation in terms of the CPI and UND1X stood at 0.5 per cent and 0.8 per cent, respectively. The low domestic inflation rate is largely due to a surprisingly rapid increase in productivity. At the same time, imported inflation has been kept down by strong global competitive pressure, spare resources in the global economy and a previously relatively strong krona. Our assessment in the Inflation Report was that inflation would increase in future, but at a fairly moderate rate. At the beginning of the forecast period the oil price in particular was expected to push up the rate of price increase. After that, rising capacity utilisation in Sweden and abroad, together with diminishing effects of a number of price-dampening factors, was expected to lead to inflation rising.
First, would standstills risk cutting-off capital flows to the emerging markets - if you like, killing the goose that lays the golden egg? History offers some clues here. For example, there appears to be no evidence from 1930s experience of defaulting countries having fared worse than non-defaulting countries in terms of subsequent output growth. And looking across a broader sweep of history, some empirical evidence has failed to find any discernibly negative long term effect of a country’s prior debt-servicing record on the terms or volume of its borrowing. That is not to say that default is costless, certainly in the short to medium term. The loss of access to capital markets and the time and effort involved with restoring credibility with creditors is, quite correctly, a strong deterrent for any country contemplating default. Historical evidence may in any case be uninformative about investor behaviour in the future under a more structured framework for international crisis resolution. If this framework helped resolve the collective action problem among creditors, it ought to benefit creditors as well as debtors. Indeed, by reducing the risk to creditors in this way, standstills should be mutually beneficial to both parties. If that is the case, there is no reason to believe that, in a world of structured standstills, there is much risk of the golden-egg-laying goose being cooked. Second, might the prospect of standstills prompt a pre-emptive rush for the exits? In a world of structured standstills, there is perhaps some risk of skittish investors rushing for the exits sooner.

But since 1970, real gross private capital flows have risen by a factor of more than eight double the growth in world trade and four times the growth in world income. Rising capital flows have delivered huge benefits to the developing countries. Capital liberalisation, like trade liberalisation, has facilitated “catch-up” in the levels of income of these countries. It delivers a permanent, and potentially huge, welfare gain. The experience of the Asian tigers from the 1970s onwards, and before that of Germany and Japan during the 1950s and 1960s, is testimony to that. But large-scale capital flows also bring risks. Capital flows are not just large, but volatile too. The financial crises in Mexico in 1994, across South-East Asia in 1997, in Russia in 1998 and in Brazil last year are the most recent and visible examples. But the incidence of financial crisis has in fact been rising since the early 1980s. And the cost of financial crises are considerable. In the stricken South-East Asian countries, capital flow reversals and output losses were anywhere between 5% and 20% of GDP. In many of these cases, there has been encouraging evidence of a V-shaped recovery in output and asset prices following crisis. But the depth of the V is clear evidence of the potential cost of volatile capital movements. Capital markets have of course been prone to “panics, manias and crashes” for as long as they have existed.
According to the Ernst&Young’s Fintech Adoption Index, one-third of consumers utilize at least two or more fintech services and they are becoming increasingly aware of FinTech as a part of their daily lives. The FinTech Adoption Index for services offered by FinTech organizations under five broad categories – money transfers and payment services, financial planning tools, savings and investments, borrowing and insurance, indicates that money transfers and payment services are continuing to lead the FinTech change, with adoption standing at 50% in 2017 and 88% of consumers anticipating of doing so in the future. Thus, the global payments industry is currently undergoing a paradigm shift driven by rapid advances, the influx of new technologies and evolving consumer behavior as digital generations come of age. The emerging FinTech enhances the transformative power of digital payments via innovation. The irruption of digital payments relates to its many opportunities. Embracing payments digitalization has the potential to substantially reduce the costs, increase the efficiency and enable broader access to payment services. With the rise of new payment digital technologies developed by the FinTech, and increasingly adopted by banks, consumers and merchants nowadays have a wide range of payment products to choose from. Innovation developments, such as instant payments, payment initiation services, person-to-person mobile payments and contactless proximity payments have the digitization process accompanied by innovative solutions in their essence. The payment innovations and digitization process also have an impact on the transformation of payment market infrastructures.

The active participation of the conference is provided and encouraged through panel session on “Payments challenges in an integrating world”, in which panelists from payment institutions and payment systems will be exchanging thoughts and ideas. Last but not least is the expected interactive participation in the working groups scheduled for the last day of the event. I look forward to the discussions and wish all the delegates an enjoyable and rewarding conference, as inspiring as its location – the beautiful city of Ohrid and the Ohrid Lake which I hope you will be able to enjoy too in the following Conference days. Thank you! 3/3  BIS central bankers' speeches
Ajith Nivard Cabraal: Inequality, poverty and development Inaugural address by Mr Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka, at Annual Sessions of the Sri Lanka Economic Association (SLEA), Colombo, 10 August 2007. *  *  *  Mr. Chairman, Distinguished Invitees, Ladies and Gentlemen, At the outset, I wish to congratulate the Sri Lanka Economic Association (SLEA) for their initiative at organizing this important and timely event, the Annual Session focusing on Inequality, Poverty and Development. This forum would give a wonderful opportunity to all the participants to share their valuable thoughts and eventually enable them to contribute to the prosperity of this country and the well-being of our people. I am also delighted to have been invited to deliver the inaugural address to this distinguished audience and I must say that I consider it a great honour and a privilege. The SLEA has been organizing events of this nature for many years and at most such events I have been an active participant. I have myself benefited immensely from these fora, and I know most of you academics, and professionals have also gained from these well balanced sessions and fruitful discussions. Further, the themes that have been selected by SLEA and the calibre of the resource persons they have invited during the past prove their willingness to make an important contribution to the development in this country.

For this purpose, we interacted with the IMF, which had already begun reflecting on the issue, and had ended setting up, in collaboration with the World Bank, the Bali Fintech Agenda, presented during the last annual meetings held in October, in Indonesia. 2  It was then an opportunity to converse with the staff of the department headed by Mr. Tobias, with whom I agreed to organize a regional meeting to follow up implementation of this agenda, which the Fund had initiated in Vienna early this year. Today, this agenda has become a reference used to address the problem in a structured and standardized way. I will not go through the details of this agenda, first because I think that Mr. Tobias is better placed than me for this, and second because the issue will be discussed thoroughly in the different sessions of this conference. Rather, my aim is to focus on the technological revolution, particularly its impact on the financial sector, then to discuss the challenges it poses for public authorities in general and for central banks in particular. Ladies and Gentlemen, In the aftermath of the 2008 crisis, while public authorities and international institutions, including the IMF, were concerned about the repercussions of the crisis, a different evolution was taking place and began to gradually transform the economic, financial and social landscape.
This does not mean that the Central Bank is indifferent or unaware of what can be achieved in this area. Recovering the Chilean economy from the shocks suffered in the last year is essential to improve the well-being of the population, reconciling economic progress with social progress. The Central Bank can contribute to this effort by providing a framework of macroeconomic stability necessary for policies, initiatives and projects to be developed, as well as data and background information that can support the decision-making. Honorable Senators, we have endured extraordinarily difficult times, in which we have demonstrated the value of cooperation and coordination when facing enormous political, sanitary and economic shocks. But this task will not be completed until we can get our economy back on its feet, recovering our capacity and expectations to aspire to a better country. In recent months, the Central Bank of Chile has had to respond to unprecedented and volatile scenarios. In this period, we have seen that transparency can be reconciled with opportunity, autonomy with collaboration, speed with responsibility. These very motivations, values, and capacities will be available for the even more challenging task of recovery, a challenge that requires input from a broader set of players. As this Senate is one of these key stakeholders, we are now open to hear your questions, comments and suggestions and, in the longer term, to continue cooperating for the progress of our country. Thank you.

In fact, even for countries such as the Republic of Macedonia, with relatively modest financial education and low utilization of modern technologies in the financial area, the question that arises is not whether, but when the digitization process will engulf the domestic banking system. In this light, I would like to point to the process of digitization and use of information technology not as a threat against the competition in banking, but as a new opportunity to bring financial services closer to as many clients as possible, to raise financial inclusion and literacy, and to ensure better allocation of resources, as phenomena of greater economic and social significance. 1/2  BIS central bankers' speeches  On the other hand, the application of new technological solutions brings changes in the range of risks that banks face and manage in their day-to-day operations. In addition to the conventional bank risks such as credit risk, interest rate risk, currency risk, the importance of non-financial operational risks will gradually increase. Increased use of modern technical solutions will mean greater significance of the risks related to the information systems security, the confidentiality of the data, the storage of information content, the access and the maintenance of the payment systems. At the end, before awarding the Best Counter Officers, allow me to express gratitude on my behalf and on behalf of the National Bank for their daily and painstaking work in the banks’ branches. Thank you for your attention and congratulations on the World Savings Day! 2/2  BIS central bankers' speeches
Here at Riksbanken, we have made it possible for the payment service to work even when the RIX system is closed by allowing a small amount of central bank money, in the form of a loan, to be outstanding during the night. 2  Other central banks are also considering these questions. See Broadbent (2016). 3  Fi 2015:02. Access to payment accounts with basic functions,” Interim report 2 from the 2015 Payment Services Inquiry. 4  For a description of the RIX system, see http://www.riksbank.se/sv/Finansiell-stabilitet/BetalningssystemetRIX. BIS central bankers’ speeches  3  Which financial institutions are participants in RIX is affected by developments on the financial markets. In a Nordic comparison, Sweden has so far had relatively few participants as members in the system and a situation where four participants are responsible for 80 per cent of the turnover. This is now changing and the Riksbank will have to consider smaller and perhaps entirely new participants who also wish to manage their payments to and from the banks, and between themselves, via RIX. For example, Forex Bank and JAK Medlemsbank will soon participate in RIX. To maintain healthy competition and efficiency in the financial system, it is important that the Riksbank treats everyone equally, although it is also important to have a safe and secure payment system. As a result of the Riksbank’s responsibility for RIX, a government enquiry from 2011 proposed that the Riksbank should be given the responsibility for coordinating crisis preparedness in the payment system via a new law.

At the same time, price stability contributes to a “safe and efficient payment mechanism” and facilitates stability in the financial system in general. The question discussed is whether the central bank’s responsibility for financial stability also means that financial stability should be an objective for monetary policy. I interpret the literature as there being a great deal to indicate that financial stability should in principle be an objective not only for macroprudential policy but also for monetary policy, although it will be a practical and quantitative question to determine in each given situation how much financial stability should be considered in monetary policy decisions. 29 In principle, it would be best if monetary policy and macroprudential policy could be coordinated, but there are also relevant arguments against such coordination. 30 It is claimed that macroprudential policy and microprudential policy should be the “first line of defence” against financial stability risks and that monetary policy should focus on stabilising inflation and growth in the real economy. But given the strong links between financial stability, price stability and real economic stability, it cannot be ruled out that monetary policy sometimes needs to be used to mitigate financial stability risks. How much depends, among other  26  In the preparatory works for the Sveriges Riksbank Act, it was stated that the Riksbank, without prejudice to the price stability target, should support the goals of general economic policy with a view to maintaining a sustainable level of growth and high rate of employment.