samchain/econo-pairs-v1 huggingface dataset:
By the late 1960s, fundamental misalignments between the major economies had become too great to support an international fixed exchange rate system and, reluctantly, we had to accept that the security we had taken for granted had become an unsustainable fiction: with ever growing international capital mobility, pegged regimes had become increasingly difficult to maintain. The reason is easy to understand: with capital free to move across national borders, the price of any currency is determined like the price of any other internationally traded asset – through the interaction and expectations of actors that operate beyond the borders of the issuing country and in response to variables that are beyond the area of influence of national authorities. By the early 1970s, central banks could not ignore this basic truth, and by 1976 all major currencies were floating. The Bretton Woods system was dead. In the decades that followed, many countries, especially developing ones, tried to cling to a dollar peg with periodic adjustments, in an effort to bring stability to their currencies. They were operating what economists call intermediate exchange rate regimes. The series of costly crises of the 1980s and 1990s proved how dangerous this path could be. The adjustable pegs that were able to channel thin capital flows were completely ineffectual when it came to containing the huge capital flows  BIS Review 120/2006  1  encountered in a more globalised world. By 1996, flexible exchange rates predominated in Africa, Asia, the Middle East, non-industrial Europe and the Western Hemisphere.

Financial integration, together with technological advances in financial markets and financial market instruments, is benefiting the world at large by allowing capital to be invested where returns are higher. Where are the risks? But these benefits also entail new risks. Indeed, despite better institutions, better policies and better markets, we feel more vulnerable nowadays than we used to in the past. How can we reconcile this image of a more prosperous and safer world with our increased feeling of danger? To some extent, our sense of vulnerability simply reflects advances in telecommunications that have enhanced our awareness of the world. I am not a geologist and therefore I cannot tell you whether we are now experiencing more earthquakes than we did 30 or 40 years ago. However, I do know that nowadays I am informed within hours, if not minutes, of any earthquake, flood or terrorist attack that occurs, even in the remotest corner of the planet. Our sense of security is bound to be affected by this kind of information. But it is not just a matter of perceptions. Globalisation means that we in Switzerland are indeed affected by events occurring in India, Brazil, Australia, Japan, Argentina… To a certain extent, our perception of heightened vulnerability is justified. SARS (severe acute respiratory syndrome) or "bird flu" have the potential to become pandemics of unprecedented reach because we travel more than in the past. A terrorist attack in any city around the globe will be felt immediately by investors worldwide.
And it’s a sign of what needs to come – because, according to the UN, emissions need to fall by a similar amount every single year for the next decade if we are to avoid the disastrous consequences of global warming.9  Chart 1: Global CO2 emissions  Chart 2: Orderly vs disorderly transition  Source: Global Carbon Project https://www.globalcarbonproject.org/index.htm Source: IIASA NGFS Climate Scenarios Database, using marker models. ‘GHGs’ = greenhouse gases. That won’t happen easily – or on its own. It turns out that the only previous material reductions in global emissions have been by-products of disasters like Covid, the financial crisis of 2008-9, World War 2, or the Great Depression (Chart 1). But relying on future disasters to force adjustment is not a plan. Orderly transition requires concerted efforts across every sector and country in the global economy. Start late, and the best case is severe economic disruption, at least as bad as in 2008-9 (Chart 2 – yellow line). Leave it completely and temperatures will soar, causing untold physical, human and economic damage (Chart 2 – grey line). Responsibility for making the hard political choices to bring about orderly transition lies with governments. In the UK, greenhouse emissions have already halved in the past thirty years (Chart 3), one of the best performances in the G7. To get to net zero, we need the same again – and that’s why the Government has committed to reduce emissions to 78% of 1990 levels by 2035, and net zero by 2050.

I want to use these remarks to explain why we are doing this, covering four main topics: -  First, why achieving net zero requires action from everyone, including central banks;  -  Second, how a clarified remit, coupled with market mispricing of climate risk, gives the Bank the green light to adjust the composition of our Corporate Bond Purchase Scheme to support net zero in ways that don’t compromise its monetary policy goals;  -  Third, why those adjustments should aim to improve firms’ incentives for delivering net zero, not simply minimise the current carbon footprint of the Scheme; and  -  Fourth, how we will turn our words into action, starting with the next scheduled reinvestment operations this autumn. The framework we are setting out today is a first for central bank monetary policy operations. But, as a famous frog once sang, it’s not easy being green.1 Some worry central banks will go too far, straying into territory best left to government. Others worry they will be too timid, under-using their influence for change. So we need your help. Do our proposals get that balance right? Have we missed anything? And how do we work with others to amplify our impact, recognising that central banks’ voices and influence are at least as powerful as our buying power? Our draft framework already draws heavily on emerging best practice. But today marks the start of an intensive period of listening and learning, framed by the questions set out in the Discussion Paper.
Egil Matsen: Climate change, climate risks and Norges Bank Speech by Mr Egil Matsen, Deputy Governor of Norges Bank (Central Bank of Norway), at Norges Bank, Oslo, 8 November 2019. * * * Accompanying charts of the speech. Introduction This autumn, news reports have included a hurricane in the Bahamas, a typhoon in Japan and large-scale wildfires in California. Many lives have been lost, and the economic losses have been substantial. While we should be cautious in attributing single weather events to global warming, climate research points towards an increase in extreme weather events and natural disasters in the years ahead. What we have seen so far may be a forewarning of what is to come. Chart: The temperature is rising Global warming is one of the greatest challenges of our time. The global average temperature has increased by about 1 degree Celsius above pre-industrial levels. It is widely accepted that climate change is largely human-induced. Greenhouse gas emissions must be drastically reduced if the temperature goals of the Paris Agreement are to be reached. Putting the necessary measures in place has proved to be demanding. From an economist’s standpoint, a carbon tax would be the most effective way to reduce greenhouse gas emissions – the polluter must pay. However, carbon taxes and other measures are often met with opposition. Costs are imposed locally, while the gains from lower emissions are enjoyed by all. The temptation is to be a free-rider. In addition, the consequences of current emissions will largely be borne by future generations.

I have, since those events, heard two views that, as a central banker responsible for financial stability, give me considerable concern. The first is that there was ‘nothing really to see here’. After a brief period of disruption, understandable given the nature of the shock, markets returned to normal and indeed were able to support the economy through the pandemic. Implicit in that view, of course, is that absent central bank intervention markets would have returned to order and stability. I simply do not believe that is the case. One cannot of course know for certain what would have happened if central banks had stood aside. But by the time central banks were forced to step in, market flows had become almost entirely one way. In a period of huge uncertainty, once the flight to safety had become a dash for cash, there was no-one other than central banks able and willing to step in to catch the falling knife. Absent the massive intervention I described above, core markets would have continued to seize up and the liquidity crunch would have become worse. Indeed, though concerned with bank rather than market liquidity, the experience of the Great Financial Crisis was certainly that once powerful and adverse liquidity dynamics set in, they do not go away by themselves. The second view that gives me some concern is that in a severe shock, in a tail event, it is the role of central banks to underpin market liquidity.
Latest digital and printing technology has revolutionised the banknote production to the highest degree of speed, accuracy and consistency, using technologically enhanced high speed printing machines to print millions of banknotes every day. Despite the rapid innovation of technology, one fundamental and specific aspect of banknotes production has never changed. When it comes to banknotes design, no technology can replace the required dexterity and the innovative mind of a design artist. Banknotes design has always been made by hand and the work is inevitably involves a process that is time consuming and requires painstaking efforts. The artist has to meticulously draw in great detail every aspect of the banknotes. Indeed as you will see at the exhibition, all these micro lines of icons give a distinguishing character to the banknotes and contribute to their uniqueness. But all the details serve more BIS central bankers’ speeches  1  than an aesthetic purpose. They also serve as the first line of defence against counterfeiting. So far, no digital copier, despite having the best resolution of contemporary technology, is able to copy micro lines and lettering on the banknotes. So if any of you here have any doubt whether a banknote in your wallet is genuine or not, place the banknote under a magnifying glass and look for micro lines. You will be enthralled at how detailed the banknote design when you get to see the blown up version of banknotes on display here in this exhibition.

Leaving aside differences across countries, a long and challenging process of economic transformation brought countries in the region significant improvements in incomes and living standards. Full membership of the EU – or the prospects of accession – provided an important stimulus for the process of transformation as well as an anchor of stability. In Western Europe, completion of the three stages of EMU led to the establishment of the European Central Bank (ECB) and the introduction of the euro in January 1999. Having started originally with 11 participating countries, the euro area has since expanded to include 17 EU Member States including some previous transition economies, namely Estonia, Slovenia and Slovakia. The changes Europe has seen over these past 20 years are enormous. Equally enormous have been the challenges along the way, not least of course due to the global financial crisis. But there have also been enormous achievements. In my remarks today, I would like to take stock of some of those achievements and focus on three main aspects of the process of economic convergence in Central and Eastern Europe. BIS central bankers’ speeches  1  Three main aspects of the process of economic convergence 1. Nominal and real convergence: what has been achieved? The first aspect of convergence relates to developments in terms of nominal and real convergence between the countries of Central and Eastern Europe and the euro area.
François Villeroy de Galhau: The euro - 25th anniversary of the Maastricht Treaty Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Osservatorio Permanente Giovani-Editori, Florence, 7 February 2017. * * * Ladies and gentlemen, I wish to sincerely thank the Osservatorio Permanente Giovani-Editori and its Chairman, Andrea Ceccherini, for inviting me. I am delighted to be with you this afternoon, with the young people of Italy, in a country that I love. A country that is at the heart of Europe and that has often marked its history, as illustrated by your magnificent city of Florence, and the glory of its Quattrocento, cradle of the whole European Renaissance. But a country that currently has doubts about Europe. I stand before you, following in the footsteps of Ignazio Visco, Jean-Claude Trichet, Jens Weidmann and Klaas Knot, as both a central banker and a committed European. And, on this 7th of February, I want to speak to you about the euro: today is the 25th anniversary of the signing of the Maastricht Treaty. The euro has existed now for 18 years and for the past 15 years it has replaced the Italian lira and the French franc in our wallets. I want to start by saying what the single currency has brought, in concrete terms, to the Europeans and then reply to four doubts that we often hear about the euro. Lastly, I want to talk about what remains to be done collectively in the future.

We all share the same social model – to which we are strongly attached – combining a high volume of public services with markedly less inequality than in other countries – for example in the United States. The right response to inequality, therefore, is not a change of monetary policy. And it is not more protectionism, even though the rules of global trade need to ensure the benefits are spread more widely. The correct response to inequality is to develop the right social model. d) The euro is controlled by technocrats in Frankfurt Yes, Frankfurt is in Germany… just as Brussels is in Belgium. But yes, despite this, the ECB belongs to us all: not just to the Germans – as the Italians tend to think – and not just to the Italians – as the Germans tend to think. With the Eurosystem, that is the ECB and the 19 national central banks, we have had a genuine federal system, one that works, since 1999. We take our decisions collegially, within the Governing Council, and then apply them in each of our member countries. ECB staff – at the heart of the system – only account for 5% of total Eurosystem headcount. France and Italy thus have much more say in decisions today: before the advent of the euro, de facto our monetary policies closely followed that of Germany.
In multi-regulatory and multi-supervisory systems like what is still prevalent in our part of the world, it is necessary to ensure that the regulatory and supervisory burden be shared by all who are responsible for regulating and supervising banking and financial institutions. This will also provide an opportunity to mitigate concentration of regulatory risks. In multi-regulatory regimes, it is particularly relevant to ensure that appropriate CG principles are laid down, so that all regulators are aware of the principles behind these governance rules that are introduced in the interest of the wider financial system stability. BIS Review 24/2007  5  In promoting sound CG, it is also necessary to develop an effective legal framework that specifies the rights and obligations of the institution, be it a bank or a finance company or other, its directors, shareholders and other stakeholders. The regulators, on their part, should initiate action to build capacity in CG at various levels, including the chairmen, the boards of directors and senior management of banks and financial institutions. The legal framework should also provide for disclosure requirements, facilitating the enforcement of the law. Further, it is essential to encourage an effective financial news media, which deals with the importance of CG and educate the public. They should play a more responsible role in disseminating accurate information to the public and initiating a meaningful discussion on the subject. Conclusion The developments in Corporate Governance that are taking place all over the world are increasingly complex.

All in all, as of today, Codes of Best Practice on Corporate Governance set out principles within which values and governance rules should be set by the management of the institution, and in the final analysis, good Corporate Governance is looked to as being a key tool to be used in the overall risk management of institutions, irrespective of the nature of the business carried out by the institution. Why is good governance in the banking and financial system more important than any other sector? The Banking and financial sector is easily distinguishable from the others. A few distinguishing features stand out: •  Unlike normal business entities which are funded mainly through shareholders’ funds, banks’ business involves funds raised mainly through deposits. The business of raising public deposits places greater fiduciary responsibilities on the institution and its managers, since depositors’ funds need to be safeguarded in a special way. 2  BIS Review 24/2007  •  Banks perform as financial intermediaries by lending and investing the funds mobilized and funding economic activities of others. •  Banks are the agents of the payments system where they facilitate payments domestically and internationally, through various instruments such as bank accounts, fund transfers, credit cards, etc. •  Banks are able to undertake all such business operations as a result of public trust and faith in the stability and soundness of the banks in particular and the system in general.
The region’s 45 countries in the MSCI AC World Index account for less than 10 per cent of the Index although their share of world GDP is 19 per cent. 21. We need to make emerging Asia’s capital markets deep enough to effectively intermediate its considerable savings pool and broad enough to provide a range of suitable instruments for risk mitigation. 22. The crying investment need in Asia is for infrastructure. A report released by the Asian Development Bank Institute estimates that the total investment needs for national infrastructure development in Asia will average close to $ billion per year from 2010 to 2020. But private participation in infrastructure investments in Asia amounted to just $ billion in 2009, less than half the $ billion that went into real estate investment. It will be a shame if Asia’s considerable savings pool, not to mention the inflows of capital from abroad, goes into speculative real estate instead of productive infrastructure investments that enhance long-term economic growth. Having well-developed capital markets is a good way of ensuring that capital is allocated to productive uses. 23. A promising experiment in developing better mechanisms for allocating capital is the World Bank-Singapore Urban Hub. Established in 2009, it brings together Singapore’s public agencies, research institutes, and private sector players to share their experiences with developing countries, in areas ranging from water and waste management, land use planning, and urban development.

I wish you a fruitful time, not only exploring new ideas and identifying new opportunities at this conference, but also discovering new delights during your stay here in Singapore. Thank you. 4  BIS central bankers’ speeches
However, I considered that this risk is slight at present, now that economic activity is slowing down. The labour market usually lags behind production in the economic cycle. Employment has risen rapidly in recent years and when demand and production slow down as quickly as they are now, my assessment was that companies are more likely to cut their workforces rather than raise prices substantially. The redundancies announced at the beginning of the autumn may be an indication that many companies have had to reduce their labour forces. To summarise, my assessment was that inflation would slow down sooner than was assumed in the Monetary Policy Update. It was therefore my conclusion that no further interest rate increase was necessary to bring inflation back on target within a reasonable period of time. Further, my assessment was that the repo rate might need to be cut more than indicated by the proposed interest rate path and I therefore entered a reservation against the new interest rate path. Some concluding thoughts The Riksbank, like many other central banks around the world, is currently facing difficult challenges. But although they are difficult, we are well-equipped to meet them. For instance, we have an entirely different starting point from that during the finance crisis of 1992, which largely concerned problems that had originated here at home. Today we are suffering contagion effects from problems in the US mortgage market, a market to which the Swedish banks have only small direct exposures.

This is not just a temporarily blip, it is a new economic landscape to which we have to adapt. We therefore need gradually, over the next two to three years, to bring energy subsidies down towards zero. And to spread the energy bill more efficiently across businesses and households, making sure to be fair to households – via measures that are better targeted towards the worst affected – but also to keep businesses competitive. In the long term, the key is, of course, everything that beefs up our productive capacity through the three major supply-  1/2  BIS - Central bankers' speeches  side transformations: the energy transformation first; the digital transformation; and the transformation of labour, which must be both more abundant and more qualified. Our growth will benefit, and inflation will be kept more under control. To sum up, the weapon that will allow us to declare a lasting victory over inflation is not fiscal, it is first of all monetary and then structural. 2/2  BIS - Central bankers' speeches