samchain/econo-pairs-v1 huggingface dataset:
4  It should also be borne in mind that the Asset Purchase Facility, the vehicle through which the gilts are purchased, is indemnified by the Treasury, while the Treasury will also receive any surplus that results from the transactions. Consequently the coupon payments on the gilts, net of the interest on the bank reserves used to purchase them, is ultimately owned by the Treasury; they are not “lost” to the taxpayer in any sense. 5  Making the monetary financing permanent by cancelling the gilts independently of the economic environment is essentially a step towards a world of “fiscal dominance”, where fiscal policy constrains monetary policy and ultimately determines the price level, as in the classic work of Sargent and Wallace (1981). 8  BIS central bankers’ speeches  Chart 1: Total stock of UK debt by sector(a) Ratio to nominal GDP  Ratio to nominal GDP 8  2.4  7  2.0  6 1.6  5 4  1.2  3 2  Financial corporations (left-hand scale)  (b)  Non-financial companies (right-hand scale) 1  0.8  0.4  Households (right-hand scale)  0 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011  (a) Includes deposits, bonds and loans but excludes derivatives. (b) Includes monetary financial institutions, other financial intermediaries and financial auxiliaries, and insurance corporations and pension funds.

The decline in Government securities yield rates and relatively low inflation experienced since the beginning of the year should contribute to a decline in banks lending rates and thus stimulate borrowing by the private sector. Ladies and Gentlemen, the critical role the accounting profession plays in enhancing economic development cannot be over-emphasized. One of the most important role the profession plays in any organization is to provide accurate, reliable and high quality financial information which communicates an organization’s operating results, its overall health, as well as raise the transparency of its various operating activities. The other role is the audit function, both internal and external, which provides independent assurance of the information produced by accountants and also reviews the control environment in which this information is produced. In a growing economy like ours, the need for high quality financial information is very critical. Financial information provides the basis for all financial decision making at all levels of economic activity, from households to large international organizations. Remember, there is no high quality information without the work of accountants and that is one reason why accountants play such a critical role in today’s global financial system and the global economy. You provide financial information that helps businesses and governments run properly. You provide investors and creditors with reliable information for decision making. You also provide assurance services founded on integrity and independence. Distinguished Members, the vision of this country is to become a prosperous middle income country by the year 2030.
Limitations in practice The problem is that it is difficult to apply this model for rules and regulations fully when there are many different national peculiarities which are hard to do away with. This has therefore provided some scope for the authorities also in the host countries to apply supplementary provisions, which have in practice impeded cross-border competition. Such provisions are often attributed to some form of general good, which can be hard to define - and for which it is even harder to disclose a hidden protectionist background. Another problem with the legislative work within the EU is that it has been so difficult to continuously modernise the rules and regulations and adapt them to new market conditions. The legislators have in several cases been one step behind the market, which has meant on the one hand that new products and operations may not have been encompassed by the new freedom of movement on the single  market, and on the other hand that the protection the legislation aims to provide has been undermined. This problem came under particular focus last year, with regard to the securities markets within the EU, and a Committee of Wise Men headed by former EMI head Alexandre Lamfalussy proposed a simplified procedure for the entire legislation process. As you know, directives are adopted by the Council of Ministers and the European Parliament in a co-decision procedure, which is in itself a complex process and even more so when the directives include detailed provisions on what is to be regulated.

We can take advantage of emerging geospatial tools to monitor assets in real time, such as to track the degradation of carbon sinks or high conservation value lands. The NGFS Taskforce that I mentioned earlier will include guidance for future deep dives into nature-related metrics, data, and scenario development. Fourth, reliable, consistent, and comparable nature-related disclosures. Standards will help to guide companies in creating much-needed transition plans for nature. Key stakeholders like the International Sustainability Standards Board, the Task Force for Nature-Related Financial Disclosures, and jurisdictional standard setters must work closely together. Along with the climate crisis, the nature crisis is the existential challenge of our times. We cannot focus on one and hope the other will take care of itself. We need to address them both in a holistic manner. This is the growing conviction of the NGFS and the financial industry. With the nature crisis, the financial sector must now translate that conviction into determined action, as it has begun to do with the climate crisis. A good  3/4  BIS - Central bankers' speeches  way to start would be to harness the power of finance to help implement the post-2020 Global Biodiversity Framework. Thank you. 4/4  BIS - Central bankers' speeches
This in turn could lead to lower inflation and economic activity. The central bank’s response is to lower the policy rate. Chart: Financial stress does not arise As a starting point for our model exercise, let us first assume that neither the central bank nor other economic agents recognise that financial stress could arise. The blue lines in the panel show the path for the policy rate, the output gap, inflation and the financial imbalances in this case. Capacity utilisation increases and inflation returns to target. However, the low interest rate level leads to an increase in the financial imbalances. Let us return to the extended model, and assume that the central bank recognises that financial stress could arise further out and takes into account the possible impact of financial imbalances on inflation and output. This scenario is represented by the red lines. The policy rate is still reduced, but to a lesser extent. In this scenario, it takes longer for inflation to move up to target. The policy stance also results in a somewhat weaker increase in activity. 4  BIS central bankers’ speeches  At the same time, the slightly higher policy rate contributes to mitigating the build-up of financial imbalances. So far, we have assumed that financial stress has not occurred. Hence, we have not reaped the benefits of the “leaning against the wind” strategy. Now, let us see what occurs if financial stress does arise further out.

Øystein Olsen: Integrating financial stability and monetary policy analysis Speech by Mr Øystein Olsen, Governor of Norges Bank (Central Bank of Norway), at the Systemic Risk Centre, London School of Economics, London, 27 April 2015. *  *  *  Please note that the text below may differ slightly from the actual presentation. Accompanying charts can be found at the end of the speech or on the Norges Bank’s website. Thank you for the opportunity to talk to you here at the Systemic Risk Centre this evening. The Centre is bringing forward research and applied knowledge in a subject that has now become a key issue in central banking. In the aftermath of the 2008–09 financial crisis, central banks and academia have put systemic risk and the interlinkages between monetary and financial stability high on the agenda. The crisis showed that keeping inflation low and stable was not sufficient to prevent imbalances in the financial system. It also showed that, left alone, the financial system is prone to excessive risk-taking. And we were reminded of how costly a financial crisis can be. Another lesson, more specific to central banks, is that there are synergies to be gained from closer integration of financial stability and monetary policy analysis. A clearer macroprudential dimension has now been incorporated into banking regulation. Examples of this new orientation are the introduction of a systemic risk buffer and a timevarying countercyclical capital buffer for banks.
This has, in turn, affected the outlook for Thai exports as the economic prospects of Thailand’s major trading partners, such as European Union and Japan, became less positive. Overall, the impact of bleaker global economic outlook depends on the degree of decoupling from developed economies and the consensus among central bankers over the world is that it is perhaps unrealistic to assume that emerging economies in general will be able to decouple. Therefore, it is more an issue of a time lag and at the present time we must wait and see when this moment of truth arrives and what the impact will be. I believe that unless the global economy dips below what we anticipated, the impact on the Thai economy will be manageable. BIS Review 119/2008  1  At this juncture, let me emphasize that Thailand’s underlying economic fundamentals remain sound and growth momentum on track. During the first half of 2008, the Thai economy achieved a favourable growth rate of 5.7 percent, improving from the growth of 5.3 percent in the second half of last year. Even though three of the four main engines of economic growth, namely consumption, investment, and public expenditure, remained mostly subdued, the performance of net exports was notably better-than-expected. This reflected export sector’s substantial efforts to adjust to slowing global demand by diversifying into new markets. Meanwhile, on the supply side, agricultural production was the key growth contributor, due mainly to an increase in crop production in response to higher market prices.

The architects of this currency separation deserve great recognition, because everything began to return to normal soon afterwards and the previous uncertainty quickly faded away. It is no secret that they were inspired primarily by Rašín’s separation and its success, and they themselves later became a source of inspiration for currency separations in other economies gaining independence. All this tells us that the Czech nation is reasonably good at running its own macroeconomic, monetary and financial affairs. It has never had to resort to an exchange rate arrangement such as a currency board, and it has enjoyed the benefits of relative economic and monetary independence. Although at times the exchange rate of the koruna has been a source of domestic economic volatility, at other times it has done a great job of absorbing external shocks. Until quite recently, we were also using the koruna exchange rate as an unconventional monetary policy instrument to help us achieve the inflation target. Our ability to conduct our own monetary policy successfully is one reason why the Czech Republic is not currently seeking to adopt the euro any time soon. To sum up, the past 100 years have not been a series of random economic events. Despite all the discontinuities, there has been some continuity. In the same way that we inherit various physical and personality traits from our forebears, economists learn their craft from those that came before them and pave the way for those that come after. I am sure this conference will bear me out on that.
It would therefore reduce the likelihood of sharper adjustments ultimately taking place in the housing market, the influence of which on the overall working of the economy cannot be understated. For a sounder functioning of the complex markets for land and housing, at least two groups of measures would be required. On one hand, those aimed at influencing the determinants of house prices and, in particular, the regulations and practices restricting the supply of land. And on the other, those intended to correct the distortions behind the marked bias in the Spanish market towards owner-occupied as opposed to rented housing. With regard to the financial system, the year 2002 was, once again, a particularly complicated one. Adding to the usual effects any economic slowdown and correction of excesses built up in upturns will involve were other factors, including most notably corporate and accounting shortcomings of a structural nature, which have undermined the very institutional foundations of markets. This crisis of confidence was exceptional due above all to the doubts cast on elements as fundamental as the recording of transactions at listed companies, the veracity of information provided to investors, conflicts of interest within companies and between these and their main financial agents or auditors, and the most elementary mechanisms of corporate governance. Within this complex picture, two positive features should be underscored.

Building upon these initial studies, the Committee has started extending its analysis to establish a comprehensive picture: for the trading book, the initial analysis has been extended to more complex portfolios, with results expected in the next few months. In parallel, the work on the banking book will extend to the other remaining core asset classes, especially retail portfolios, SMEs and so-called “partial use” exposures (ie exposures that  4  BIS central bankers’ speeches  have not been migrated to the internal models). The Committee also foresees extending its work to operational risk, the third core risk type. And once the Committee has done an initial round of assessment, we will need to repeat the exercise periodically to see whether the policy measures that I will discuss shortly are having the desired impact. Further analysis to establish a comprehensive picture will take us into 2015, but this does not, of course, prevent us from taking action in the meantime. It is clear that a problem exists and the Committee is considering a range of supervisory and policy responses – without, I must add, settling on anything definitive just yet. Given the multi-faceted nature of the problem, it is also clear that we will need a multi-faceted response. As there is no silver bullet, we will likely end up with a series of incremental policy and supervisory changes, drawing from the following list:   Most immediately, we will see supervisory action.
Turning to decentralised finance, while still in its early stages, this market segment has proven stamina as it quadrupled its size in just one year.15 What’s more, other parts of the crypto-asset ecosystem echoed this movement. For instance, the need for collateral tailored to this environment spurred demand for certain types of digital assets. The same could be said about certain investment strategies, known as yield farming, which support the automated lending or borrowing of crypto-assets in order to underpin DeFi’s markets liquidity.16 The vulnerability and interconnection on this segment has been illustrated by the sudden fall of Terra that caused this market to shrink by 22% in less than a month with an ensuing snowballing effect on several DeFi protocols and major fiat-backed stablecoins. Yet, most other stablecoins did not experience significant outflows or de-pegging, and unbacked crypto-assets’ prices seem to have surged back again. Risks to financial stability The above developments have caused a number of valid concerns among financial authorities. For instance, the Financial Stability Board (FSB) recently stressed that, if not properly regulated and supervised, these markets could quickly reach an inflection point 12  ETFs are investment instruments that function as a hybrid between funds and shares. Their defining characteristic is that they can be traded and settled in straightforward stock exchange transactions much like shares. 13  A case in point is the Chicago Mercantile Exchange, which in October 2021 became one of the first to launch a bitcoin ETF.

They are evolving rapidly, they are highly automated in key market segments, and information on trading activity is not widely available. As a result, it is challenging for the official sector, market participants, and members of the public to effectively analyze these markets, understand the sources and risks of flash events, and evaluate how liquidity is changing. Given the role of the Treasury market as the deepest and most liquid fixed income market in the world, it is clear that both the official sector and the public need improved access to transactionlevel data, and I am pleased that we are making real progress on this front. Greater transparency into Treasury market activity is necessary in maintaining the market’s many important roles: as a risk-free benchmark for financial instruments; as a liquid investment and source of safe collateral; as a channel for the implementation of monetary policy; and, of course, as a tool to help finance U.S. government activities. As the Treasury market continues to evolve, several complex questions lie ahead. How should data reporting gaps be closed to ensure that as many relevant Treasury transactions as possible are collected? What is the proper scope and best process for sharing Treasury market data with the public? How can the Joint Member Agencies and private stakeholders best collaborate to ensure Treasury market stability and efficient market function, even as market structure evolves and new technologies emerge?
BIS Review 82/2008  3  Advocators of a “wait-and-see” approach in the face of supply shocks are not clear on the question of when the supply shock ends and when demand-driven price increases take its place, in an environment where inflation keeps rising. If this issue is not clarified, any abovetarget inflation figure or any upward revision in inflation forecasts can easily be attributed to supply-side factors. Clear lines should be drawn as to which economic data would refute this discourse and what would constitute a limit to supply shocks from a central banker’s point of view. Dear Guests, In this part of my speech, I would like to discuss recent developments in the Turkish economy and the monetary policy implemented in this period. I believe that starting this evaluation with the developments in 2006 will be more useful in providing a better understanding of the current monetary policy stance. As you may know, in May 2006 risk perceptions for developing countries changed significantly owing to the deterioration in global liquidity conditions. In the period where the supply-side shocks started to take their toll on inflation, the rapid depreciation of Turkish lira led to a significant deterioration in medium and long-term inflation expectations – giving rise to the risk of potential second-round impacts. The Central Bank of Turkey responded to these developments with a rapid and strong monetary tightening. This strong monetary tightening was a necessary policy stance for keeping inflation expectations in check and making inflation converge to the target in the medium term.

Therefore, it is not surprising that the systemic problems that emerged in the US sub-prime housing loans in the second half of 2007 and gradually spilled over to other credit markets have given enormous anxiety to policy makers. In this context, central banks have engaged in closer cooperation and information sharing with each other to address these challenges. The recent crisis in financial markets is likely to have significant repercussions over the real economy and the most obvious victim is the economic growth. A marked slowdown in  BIS Review 82/2008  1  developed countries is expected. Part of the current debate is whether developing countries could escape from a sharp slowdown in the industrialized world. Some argue that they can, thanks to progress in macroeconomic stability and structural reforms in recent years. We still do not know whether they are right. Another aspect of globalization is the huge volume of international trade, which has led to considerable convergence in business cycles across countries. Integration of previouslyclosed economies, like China, India and Eastern European, to international markets has led to an economic boom in the world economy, which was mostly anti-inflationary – until most recently. Needless to say, record increases in commodity prices in the last two years have created doubts in our minds about the sustainability of this anti-inflationist growth process in the near future. Dear Guests, We are currently facing significant inflationary pressures on a global scale due to record high increases in commodity prices.
Indeed that is why we took it upon ourselves to reform SONIA. We started collecting daily data on money market transactions in February 2016 from over 50 banks, building societies and investment firms. These data give us a much clearer picture than we have previously had of what is going on in sterling money markets. A subset of the data will be used for reformed SONIA. The reformed rate will be much more robust, with daily transaction volumes three to four times greater than current SONIA. Any change in SONIA’s properties will be minimal – so far the reformed rate has been around one basis point lower than on the current methodology. Another key reform is that the Bank has consulted on and will implement a changed definition for SONIA. The new definition will allow the methodology and input data of SONIA to evolve if material changes to market structure or functioning threaten to undermine the integrity of the rate. This unique feature will ensure the robustness of SONIA over the long term, giving users confidence that their contracts will not be disrupted. Let me emphasise that, from the perspective of a user of SONIA, implementing these reforms should be seamless. However, one operational consequence that users should be aware of and prepare for is that the publication time for SONIA will move from the evening of the day in question to the morning of the following day. The Bank is working with ISDA, LCH and others to ensure this change is implemented smoothly.

I do not have the answers for all of them but I believe these questions are important and relevant for us to address today and in days ahead. What I can tell you definitively is that the work on the integrated policy framework (IPF) is highly important as the environment that ASEAN policymakers are navigating through becomes increasingly challenging. On this note, I look forward to an engaging and fruitful discussion today. To my ASEAN colleagues, let us use this opportunity to share our views and experiences with the IMF. To our IMF colleagues, it is my hope that you will consider these views and continue to engage with regional policymakers as you work towards finalising the work on the IPF. 3/3  BIS central bankers' speeches