samchain/econo-pairs-v1 huggingface dataset:
8 It is important that the Riksbank understands these changes, both to be able to conduct an effective monetary policy and to be able to identify risks on the financial markets. In other words: the Riksbank must be able to manage the economic consequences of climate change. 6 Some people talk about central banks’ role being not just “lender of last resort” but also “market-maker of last  resort”. See, for example, the Bank for International Settlements (2014). NGFS (2019) talk about physical impacts and transition impacts, respectively. 8 See Cœuré (2018). 7  4 [7]  Should the Riksbank buy green bonds? Another question that is sometimes discussed is whether the central banks themselves should try to affect climate change. This usually involves two different directions. The first is regulating the financial markets to steer investments in a more sustainable direction. In many countries it is the central bank that is responsible for this type of regulation, but in Sweden it is the responsibility of Finansinspektionen (the Swedish financial supervisory authority). The Riksbank does not have any of these tools at its disposal. The second direction concerns the central bank’s own investments. After the financial crisis, many central banks, including the Riksbank, built up large balance sheets through asset purchases. Shouldn't these purchases reward sustainable assets, for instance by focusing on green bonds? This is a question faced by central banks today, and the answer is not evident. I shall try to describe my views on this.

Swedish Ministry of Finance (2019), “Uppdrag till Riksgäldskontoret att genomföra en emission av gröna obligationer”(Swedish National Debt Office tasked with issuing green bonds), Government decision, Fi2019/02708/S. NGFS (2019), “A call for action. Climate change as a source of financial risk”, Network for Greening the Financial System, First comprehensive report, April 2019. Rachel, Łukasz and Laurence H. Summers (2019),”On Falling Neutral Real Rates, Fiscal Policy, and the Risk of Secular Stagnation”, Brookings Papers on Economic Activity, spring 2019. Reichling, Lucrezia, Adair Turner and Michael Woodford (2019), “Helicopter money as a policy option”, VoxEU column. Shirai, Sayuri (2019), “Modern money theory and its implementation and challenges: The case of Japan”, VoxEU column. SOU (2017:115), “Att främja gröna obligationer” (Promoting green bonds), Report from the Inquiry into green bonds, Swedish Government Official Reports. Sveriges Riksbank (2019), Monetary Policy Report, October 2019. 7 [7]
As a rapidly growing region, greater regional financial  2  BIS central bankers’ speeches  integration will support the more effective and efficient intermediation of Asia’s sizeable funds towards meeting the investment opportunities of the region. Efforts to enhance cross-border financial linkages and advance financial integration have also intensified in Asia in this decade, mainly through the progressive liberalization of the financial sector, the pooling of resources to promote the development of domestic capital markets and the integration of payments and settlement systems. These developments have also seen the growing presence of Asian financial institutions in the region. In 2011, central banks in the ASEAN region have endorsed an ASEAN Financial Integration Framework which will pave the way for greater market access and operational flexibility for qualifying financial institutions. This represents the collective commitment of the region in the efforts to strengthen the region’s capacity to intermediate regional and international financial resources to productive activity in the region. A third imperative is the alignment of the financial sector to Asia’s demographic trends. Demographic profiles vary widely across Asia and have a significant impact on economic potential of the region. For many parts of Asia, demographic developments foreshadow significant changes in consumption, health and educational patterns. These changes have reinforced the significance of domestic sources of growth. Asia’s rising domestic demand has been supported by the development of a much broader range of financing options.

Zeti Akhtar Aziz: Growth and stability – implications and priorities for Asia Keynote speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the IIF Annual Membership Meeting 2012: “Growth and Stability – Implications and Priorities for Asia”, Tokyo, 12 October 2012. *  *  *  Introduction It is my honour and great pleasure to speak at this 2012 Annual Membership Meeting of the IIF here in Tokyo. These continue to be times of great uncertainty, with financial institutions being very much at the centre of the global efforts to restore stability and growth. Confidence in financial institutions however continues to remain fragile in several parts of the world. This is a time when strong and responsible leadership in the financial industry has never been more important. The IIF is well-positioned to lead this charge through its role in advocating the industry standards and best practices, drawing on the collective experience of its broad membership. Indeed, it has performed this role most commendably. The common theme during the meetings throughout this week has been centred on growth and stability. I appreciate this opportunity to speak on the global economic and financial developments from the perspective of Asia. My remarks will also include a view of Asia’s development priorities to firmly anchor our future growth and stability prospects.
Jean-Claude Trichet: Taking stock on financial reform Opening speech by Mr Jean-Claude Trichet, President of the European Central Bank, at the Frankfurt Finance Summit, “The future of risk management and regulation: smarter regulation, safer markets”, Frankfurt am Main, 23 March 2011. *  *  *  Ladies and Gentlemen, I am very pleased to be able to open this conference here at the House of Finance in Frankfurt. Frankfurt now hosts three European institutions: the European Central Bank (ECB), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Systemic Risk Board (ESRB). This city is now the home not only of Europe’s monetary authority, but also of important supranational responsibility for supervisory matters. With the EIOPA and the ESRB, Frankfurt hosts half of the European bodies in the new European System of Financial Supervisors, with the other two European Supervisory Agencies (ESAs) – the European Banking Authority (EBA) and the European Securities and Markets Authority – based in London and Paris respectively. I have looked with great interest at today’s programme, which is of exceptional quality. In my opening remarks, I would like to lay out a scheme of the building blocks of the financial reform that is still in progress. I believe that when we look back in a few years on the financial reform following the global crisis, we will identify three main building blocks: The first is banking regulation. The global community is making a big step forward here.

Global liquidity has increased significantly as central banks of developed countries, which eased policy rates rapidly, adopted quantitative easing policies. Recently, capital flows to developing countries such as Turkey have been accelerating owing to expectations that short-term interest rates in developed countries would remain low for an extended period, the decoupling in growth performances of countries and increased risk appetite. In the face of growing capital flows, some developing countries are introducing measures to prevent capital inflows. However, past experiences of countries show that restricting capital inflows is not really effective in terms of the volume of capital inflows while it is only partially effective in terms of the type of incoming capital. In other words, due to reasons such as financial innovation and the integration of markets, it is not possible to effectively prevent capital flows, unless they are fully controlled. The current conjuncture is conducive to benefiting wisely from capital flows and implementing policies that would reinforce financial stability and enhance financial depth. In this respect, the Financial Stability Report, which was prepared by the Central Bank of the Republic of Turkey and made public yesterday, is an important policy text delineating the strategy to be implemented in the upcoming period to maintain and reinforce financial stability in Turkey. Therefore, I suggest that the report be examined in detail. The policy framework, which the Report outlines in detail, has four pillars.
Between now and the 15 November, the Bank will therefore be running a consultation programme that will provide the public with a greater familiarity with polymer banknotes. The consultation will, in turn, provide us with a better understanding of the public’s views on the proposed change and whether such a change would meet with broad public acceptance. BIS central bankers’ speeches  1  We will be holding around 50 events across the UK to enable the public to see and feel examples of polymer notes, and to deliver feedback to the Bank. We will hold events in 13 major shopping centres to allow shoppers to see and handle specimen notes. And we will be running over 30 discussion events with audiences including regional chambers of commerce and retailers. A market research company will separately be conducting another 36 focus groups and carrying out a face-to-face survey with 2,000 people to collect further feedback. We will also publish a range of useful material on our website including a facility for the public to provide feedback directly to us. And there will be a specific display about polymer in the Bank’s museum for anyone visiting London who wishes to learn more. In parallel with the public consultation we will conduct further outreach with the cash handling industry, to confirm our understanding of the impact on industry of a switch to polymer.

Charles Bean: Polymer banknotes Remarks by Mr Charles Bean, Deputy Governor for Monetary Policy of the Bank of England, at the Bank of England, London, 10 September 2013. *  *  *  Good morning and welcome. One of the Bank’s most visible responsibilities is the issuance of banknotes. It is a long-standing responsibility that dates back to shortly after our founding in 1694 and over the past three centuries, our objective has remained the same, namely to supply good-quality, genuine banknotes that command the people’s trust. Meeting that objective helps us to achieve one of our core purposes, which is to maintain confidence in the currency. Following a three-year research programme, we are today announcing the launch of a public consultation regarding the possible introduction of polymer as the basis for the next generation of banknotes. Polymer banknotes are made from a durable, yet thin and flexible plastic film. Design features of the banknote are printed on the film, meaning these notes can look very similar to notes printed on paper. If the public reception to the proposal is supportive, then the recently announced Sir Winston Churchill £ and Jane Austen £ notes would be issued on polymer. This change would happen in 2016 and 2017 at the earliest. The Bank’s research programme has been wide ranging, investigating the impact of the introduction of polymer notes along several dimensions, including: security, durability, costeffectiveness, the impact on stakeholders in the cash industry, environmental considerations, and the likely impact on noteholders.
In this context, the Board has held the MPR at 5%, but noting that if these trends consolidate adjustments to the policy rate may be required. Let me now describe for you our baseline scenario for the Chilean economy and the main risks examined in our Report. Macroeconomic scenario International trends depicted in June have settled. News coming from the developed economies, particularly the United States, confirms a gradual recovery. The revision of U.S. economic figures lowered the growth forecast for the whole year, but showed that the U.S. economy picked up sooner than expected. In the second quarter it accelerated thanks to increased investments in fixed assets, a steady improvement in the labor market and more  2  BIS central bankers’ speeches  optimistic expectations of consumers and enterprises. In addition, the markets foresee that the Fed will anticipate the withdrawal of the monetary stimulus in place. The recovery of the Japanese economy continues, but questions remain regarding its sustainability. After six quarters of contraction, the Eurozone recorded positive growth in the second quarter, driven by Germany and France, and also favored by the economies of the periphery that moderated their contractions. However, it is still premature to conclude a change in trend. The emerging world, on the other hand, has continued to show widespread deceleration. China settled in lower growth figures, despite some signs of stabilizing output and messages from the authorities that they will sustain an economic expansion of 7% annually.

From taking prompt action to prevent the economy from overheating to acting just as promptly to avoid deterioration. In this dilemma, we have always opted for a medium- to long-run look over the short-term ups and downs, and therefore considered all the risks involved. So far this has allowed us to properly anticipate events and stick to what we believe has been the right monetary policy. The international conjuncture puts us to the test; we have identified many risks in this area. Over the months they have increased in both variety and origins. We know that we are prepared to face them in the best way possible. It is impossible to be immune. In fact, a small open economy like Chile is always subject to the vagaries of the international economy: it could not be otherwise. However, policy makers should be able to overcome them without major setbacks. There are also challenges within our borders, especially doubts about the evolution of a number of variables, such as employment and consumption, among others. It is precisely this medium- to long-term vision what helps us not to make hasty decisions. We have said that we are ready to take action if necessary, but overreacting to one particular event would be tantamount to throwing away the well-earned credibility of the Central Bank, which is a fundamental anchor to achieve our goal of safeguarding the stability of the price level and the financial system.
It will require large investment and the development of new green technologies which are more expensive. Moreover, regulation, including tax measures, implemented by various countries will impact the value of Russian exports. The global transition to the green economy might reduce the export potential of a part of Russian enterprises, while expanding the potential of others. In this regard, it is critical not to miss the moment of a turnaround in the economy and, accordingly, the financial sector as well. Besides challenges to future growth, we now need to consider financial stability risks especially closely as they have intensified during the pandemic. As we know, there are many countries and companies that have accumulated enormous debts. It was not that hard to service them when interest rates were low. However, an increase in interest rates might alter the situation dramatically. A number of countries and the global economy in general might face new financial problems, a wave of bankruptcies, and rising market volatility. We are not able to influence these processes, yet we are capable of mitigating their implications for the Russian economy and can reduce its sensitivity to possible global upheavals. To this end, it is vital to avoid the accumulation of internal mismatches and prevent any bubbles in the market. Currently, we are especially closely monitoring retail and mortgage lending in the banking sector. According to our estimate, growth in mortgage lending might exceed 20% as of the end of the year.

Elvira Nabiullina: Speech at International Financial Congress Speech by Ms Elvira Nabiullina, Governor of the Bank of Russia, at the International Financial Congress, 30 June 2021. * * * Good morning, dear participants of the International Financial Congress. Today, on the third day of this congress, we will continue to discuss changes in the economy and finance over the eighteen months of the pandemic. We will also talk on the factors influencing future development trends. There are a number of trends that have sped up due to the pandemic, for instance, digitalisation, whereas others have emerged recently, specifically remote work. There are also trends that have reversed, the major one of which is a rise in inflation from long-term low rates in advanced economies. We need to revise the situation and look differently at common developments to comprehend which of them are transitory, and which will stay for a long time or even forever and to identify future systemic risks emerging in this new world and, of course, new strategic opportunities. The global economy is reviving. Unprecedented measures implemented by governments and accommodative monetary policies have helped not only curb the spread of the crisis, but also promote a fast recovery. On the other hand, large-scale fiscal stimuli and accommodative monetary policies have spurred inflation. Hence, many central banks now have to make tough choices since inflation threatens growth and people’s welfare in the future, whereas policy tightening might somewhat slow down the economic rebound already now. Furthermore, factors driving inflation vary in different countries.
For example, research looking at the pre-crisis period suggests that where banks face limited competition in their domestic markets, they tend to charge higher margins for lending to SMEs, and that effect increases in financial systems which are more bank-based 3 That would change if small firms had more options to diversify, for instance through efficient private placement markets or further growth in crowdfunding. There are nevertheless good reasons why banks are the primary lender to SMEs in most national markets – they have the client relationships, information database and domestic networks which are necessary for that type of lending – so banks are unlikely to be displaced by non-banks for quite some time. The challenge posed by CMU is therefore not, at least in the medium-term, about surviving. It is rather about thriving. CMU presents banks with an opportunity to recover profitability and to find a niche within the emerging market for new financial products in Europe. Because in the euro area we have a universal banking model, more disintermediated finance will have to involve banks as the primary market makers. With CMU on the horizon, there is now a window for banks to specialise in specific products, become market leaders and bolster their sources on non-interest income. In particular, the development of securitisation markets offers significant possibilities for banks. There is clear demand for a conduit between non-bank investors looking for SME exposure and small firms looking for new sources of financing.

But what some of you may know is that he has had a very long involvement in, and influence on, monetary issues here in Hong Kong. This began almost exactly twenty years ago when Hong Kong, suffering from a crisis of confidence in its political future, and without any effective form of monetary control, was on the brink of a financial meltdown. The exchange rate was depreciating sharply and Charles was brought in from the Bank of England to advise us on how Hong Kong could be rescued. He gave valuable advice on a proposal to return to a fixed exchange rate system through the currency board arrangement of linking the Hong Kong dollar to the US dollar. As you all know, that exchange rate link was subsequently established, in October 1983, and it is still in operation now. It commands a high degree of confidence and credibility. It has served Hong Kong extremely well in the past twenty years. In his advice, Charles also covered other strategic issues of central banking for Hong Kong. As the only remaining person in the public sector continuously involved in this area of work from then until now, I can say with some authority that the views of Charles have exerted much influence on the development of the monetary system of Hong Kong. I do not know whether you remember, Charles, your piece of advice to the then Financial Secretary, the late Sir John Bremridge, written on 6 October 1983.
Globalisation has been given a powerful push forward. Even though setbacks are possible, it is reasonable to believe that the supply shock produced by Asia’s low-price exports will continue to depress prices in the world for many years ahead. China’s government has set a target of quadrupling its GDP during 2000-2020, as happened over the last twenty-year period. In rural parts of China there are hundreds of millions of people who dream of a better life in the cities and of working in a modern company. In Sweden we can see how inflation in recent months has turned out lower than we expected, because price increases for imported goods have been weaker than anticipated. The productivity gains that we have witnessed, and that have also contributed to such a low inflation rate, may also be due to the increased global competition. Another dampening effect can be expected from the abolition of the import quotas for textiles. At the same time there is as usual reason to believe that world market prices will increase as economic activity improves. The rapid growth in the new industrial countries is also pushing up the prices of commodities, not least oil. It is therefore uncertain how long import price pressures will remain very low. In any event this is a very important issue for monetary policy in the coming year, and at the Riksbank we are keeping a close eye on import price developments. Allow me to round off with some thoughts regarding the stance of monetary policy.

It is possible that a policy-rate path with a higher policyrate in the near future will be deemed to dampen asset-price increases in the near future and also reduce the risk or size of a collapse in the more distant future, thus undershooting the inflation target in the near term but providing a more stable development of inflation and resource utilization in the medium and longer term. These are examples of situations when the central bank may choose to respond to asset-price developments. However, the reason for these responses is that the central bank is concerned with the repercussions for inflation and resource utilization, not with the asset prices as such. That is, asset prices are not target variables; they do not enter the loss function. It goes without saying that in most realistic situations it will be very difficult to judge whether a particular asset-price movement is a bubble or is grounded in expectations about reasonable  5  See the box “Monetary Policy at Low Interest Rates” in the February 2009 Inflation Report (Bank of England 2009, p. 44). My own view is that the “zero interest-rate mystique” may have been somewhat exaggerated, see the discussion in the Riksbank’s minutes of its September 2009 policy meeting (Sveriges Riksbank 2009). BIS Review 112/2009  3  fundamentals, and whether there are repercussions on inflation and resource utilization that motivate adjustment of the policy-rate path. 6 This is obviously an area where good judgment is crucial.