samchain/econo-pairs-v1 huggingface dataset:
The ideal which it is hoped that the proposed law will achieve is one in which there will be continuous and constructive co-operation between the Monetary Board and the Government. The principal instrument for achieving this co-operation should be the Permanent Secretary to the Ministry of Finance whose membership on the Board will ensure at all times that his Minister’s views will be made known to the other members of the Board. The effectiveness of this co-operation and co-ordination between the Board and the Government will depend more upon the men occupying the key positions at particular times than upon any legal formula, no matter how carefully or elaborately it might be worked out. A relationship as complex, and sometimes as delicate, as this one is certain to be, cannot be established fullblown by a piece of legislation. It must be the result, as in other countries, of years of experience and the slow growth of political conventions. One further point is well worth making. There is a clear need in Ceylon for some sort of economic council at Cabinet level to achieve improved co-ordination of Government economic policies. If in future such a council is set up it is suggested that the Governor of the Central Bank should have a place upon it……”  BIS central bankers’ speeches  7  Finally, officers of the central banks are not gods to know all problems in advance and give 100% solutions. We are all human beings and make mistakes.

Factors which might influence banks simultaneously are in focus, for instance the emergence and bursting of financial bubbles, excessive debt leverage in a certain economic sector or structural changes leading to reduced revenues or increased risks. The purpose is to identify conceivable risks and present an analysis that will influence the behaviour of market participants. A first and very relevant question is whether a stability report really would help to prevent a crisis. Will the financial sector read and listen to what the central bank has to say? Will this kind of moral suasion be sufficient? Could we have written a report in the late 1980s that would have made the banks see what they did not see? We do not know. But at least as long as managements have a memory of the last crisis, they are likely to listen. And if the crisis develops slowly, there are certainly things to be done. I shall return to this question when I talk about crisis management. Let me now turn to the main elements of a stability report as I see them. First, we look at the banks’ borrowers, because as long as they are healthy the banks usually are as well. Borrowers are analysed in terms of the corporate and household sectors in general, with particular reference to levels of debt and the future ability to pay. The real-estate sector is considered separately because lending to this sector is in most countries a major part of banks’ total lending.
I try to sum up these principles which guide us not only in weathering this storm, but also in sunnier days, when the role of crisis prevention cannot be overlooked. The first and foremost principle rests upon the authorities’ ability to carry out prompt and preemptive actions with the best set of available information in dealing with changes in the market conditions and practices. Of course, we all know that to be able to identify where the risks are is no longer a simple task in this current environment. But once any significant sign of imbalances in the economy is detected, central banks need to be vigilant and act in a timely manner. True, it is difficult to counter the sentiments of the government, investors and  BIS Review 120/2008  1  the public alike if central banks play their role of “taking away the punch bowl when the party gets going”. In a nutshell, this implies that we central bankers need to be watchful and decisive, not to be swayed by these voices. Second, we also need to maintain flexibility in the conduct of central banking policies. By this, I mean flexibility in terms of policy instruments and also in terms of using innovative methods to deal with the evolving challenges. For example, we may not be able to just rely on, say, using traditional solutions of raising interest rates to address rising inflation, but we may also have to resort to a mix and match of the toolkit available to us.

Tarisa Watanagase: The changing financial environment and implications for central banks Welcome address by Dr Tarisa Watanagase, Governor of the Bank of Thailand, at the 27th SEANZA Governors’ Symposium, Bangkok, 20 September 2008. *  *  *  Fellow Governors, Distinguished Guests, Ladies and Gentlemen, It is my privilege to extend a warm welcome to all SEANZA Governors and distinguished participants to the 27th Governors’ Symposium and the Central Banking Course. At the outset, I would like to take this opportunity to express my sincere gratitude to Mr. Jaime Caruana, the former Governor of the Bank of Spain, and currently the Counsellor and Director of the Monetary and Capital Markets Department of the IMF, who flew half way around the world to be with us today to share his views and enrich us with his experiences from a global perspective. This year’s theme of the Governors’ Symposium is “The Changing Financial Environment and Implications for Central Banks”. I believe you would all agree that the discussions on this topic couldn’t have come at a more appropriate time, given the current financial market turbulence we are encountering today. Right now, all eyes are focusing on what solution central banks will come up with to resolve the current global crisis.
Area-wide equity indices have been made available by various market participants, thus providing investors with opportunities to monitor area-wide equity positions as well as, in some instances, positions in area-wide industrial sectors. The fact that the euro area (and EU) equity markets are becoming more integrated, more liquid and deeper is good for market efficiency, and a more efficient allocation of capital should mean that equity financing becomes more readily available for companies. I should also like to mention that a prudent, harmonised regulatory framework, on the one hand, and harmonised market practices, on the other, are key factors guaranteeing a favourable outcome for these structural changes. In these areas a lot of work is under way, and much has still to be achieved in order to pave the way for truly integrated financial markets. Harmonisation in, for example, repurchase agreements, national company laws including bankruptcy laws, and other aspects of the legal and regulatory framework, would enhance legal clarity and certainty and thereby improve the efficiency and stability of the financial markets. Indeed, the European Commission recently published an Action Plan containing priorities and timetables for measures aimed at improving the single market for financial services. In the Action Plan, measures are proposed to advance the harmonisation of the legal framework and market information, as well as to facilitate investors’ operations throughout the single market. In this respect, I should also like to pay tribute to the International Organization of Securities Commissions (IOSCO) for its efforts.

In this regard, the smooth changeover of the financial system to the euro demonstrates the virtues of efficient and careful forward planning. Third, I do not view efficiency and stability of the financial system as being contradictory. In many ways these qualities actually support each other by laying a firm foundation for the financial system. An inefficient financial system, in addition to being costly to society, can be more vulnerable to shocks. At the ECB, we play our part in the evolution of the euro area financial system by providing it with stable monetary conditions. By creating an environment of price stability, we allow private sector agents to focus their attention on the questions that are most relevant to their activities and to take advantage of the benefits of this stable environment, such as the lengthening of their planning horizons. 5  BIS Review 63/1999
Ability to act  Of course, notwithstanding these design features, exit will require a number of policy decisions. Therefore, an important question and the third cornerstone of our exit strategy is whether a central bank has the technical and institution capability to take such decisions. a. Technical capability and the operational framework  On the technical side, the question is whether we need to set up new rules and procedures to exit. This is not the case. The ECB’s operational framework is well equipped to facilitate  6  BIS Review 103/2009  the unwinding of non-standard measures when the need arises. The framework embodies a rich and flexible set of instruments, including fine-tuning operations, for the absorption of abundant liquidity – promptly if necessary. Moreover the framework permits short-term interest rates to be changed while keeping some non-standard measures in place, should continued credit support be needed. This feature is of great consequence: it means that the Governing Council can choose the way in which interest rate action could be combined with the unwinding of the non-standard measures. There is no pre-determined sequence between a change in interest rates and unwinding of non-standard measures. Hence, the Eurosystem retains appropriate flexibility as to the way in which interest rate action will be combined with the unwinding of the additional credit support measures, notably its extended framework for longer-term refinancing operations. In short, the ECB has in place all the technical ability to absorb liquidity as required. b.

The exit strategy, in the end, will need to be invoked at the precise time in which the traditional link between broad money and our provision of liquidity to the banking system will re-establish itself. This calls for a constant and careful monitoring of the conditions at which the Eurosystem supplies central bank credit to banks in view of the evolution of the economy and of markets expectations. Thank you for your attention. BIS Review 103/2009  9
Singapore is attracting companies to anchor their R&D activities here to develop new sustainability solutions, including technologies such as carbon capture, utilisation and storage. MAS’ Green Finance Action Plan has a focus on building strong capabilities in green finance. This includes initiatives to anchor in Singapore providers of sustainability rating and verification services, centres of excellence to undertake Asia-centric green finance research, and funding support for Green FinTech projects. I believe Singapore has what it takes to anchor a thriving carbon marketplace at the heart of a vibrant carbon services hub, supporting Asia’s transition towards greater sustainability. 4/5  BIS central bankers' speeches  Conclusion Let me thank all our industry partners for making CIX possible. Together, let us work towards a low carbon future. 5/5  BIS central bankers' speeches

Since the summer, the exchange rate has fallen by almost 20%; and oil prices have fallen by around two-thirds, both of which will boost demand. No one can know at what point the impact of all this stimulus will have a visible effect on activity; the lags in economic policy are notoriously long and unpredictable. But welldesigned policies implemented within a consistent policy framework will eventually work. BIS Review 8/2009  5  1. Ten largest monthly falls in UK equity prices  Percentage change on a year earlier  South Sea  Aug-Sep 1720  Black Monday  Oct-Nov 1987  South Sea  Sep-Oct 1720  10 Se p-10 O ct 2008  10 Sep-10 Oct 2008  Oil shock & secondary bank crisis  Nov-Dec 1973  Oil shock & secondary bank crisis  Jul-Aug 1974  France fall to Germany  Jun-Jul 1940  Oil shock & secondary bank crisis  Feb-Mar 1974  Unexpected rate hike  Aug-Sep 1981  Oil shock & secondary bank crisis  Nov-Dec 1974  2. Chinese electricity production 30 20 10 0 September 2008  -20 Jan 01  -60  -40 -20 Percent change  Jan 03  Jan 05  4.
The strong momentum of the sukuk market is underpinned by the increasing demand for sukuk, especially sukuk of high credit ratings, from Islamic investors. Over the years, the Gulf region has accumulated a huge amount of oil revenue. The  1  Source: KFH Research  2  Source: KFH Research  3  Source: Zawya  BIS central bankers’ speeches  1  current account surpluses in the Gulf Cooperation Council (GCC) countries last year were estimated to be more than $ billion,4 while assets under management by sovereign wealth funds in those countries amounted to as much as $ trillion at the end of last year.5 Islamic investors in the Middle East and other Islamic countries generally have a preference for investing in Shariah-compliant assets. With the expanding liquidity pool in the Islamic world, naturally, there is a commensurate increase in the demand for Islamic investment instruments globally. 7. As an international financial centre and given our unique role as a gateway to China, Hong Kong is well-positioned to provide an effective platform to channel the surplus funds from the Islamic world to this part of the world where there is a huge financing need to sustain the high growth of the Asian economies. Our platform will enable Islamic investors to access investment opportunities in Asia, particularly China, while at the same time allowing fund raisers to tap into the liquidity pool in the Islamic world. 8. What’s more, sukuk are becoming a mainstream asset class in the global financial system.

Ladies and gentlemen, I hope that you now have a better idea on the opportunities and benefits brought by the development of Islamic finance in Hong Kong. It is essential for all of us to get well-prepared in order to make the most out of these upcoming opportunities. Your presence at this conference today is highly encouraging and reflects that you are actively gearing yourselves up. I am confident that you will have a lot to take away from the advice of the experts gathered here today. 23. At the same time, we will continue our efforts to promote market awareness of Islamic finance in Hong Kong. In particular, today’s event demonstrates the concerted efforts of Hong Kong and Malaysia in creating market awareness and promoting understanding of Islamic finance. We very much appreciate the close partnership we have established with Malaysia in developing Islamic finance. I wish this conference every success and I certainly look forward to more co-operation opportunities in the future. Thank you. 4  BIS central bankers’ speeches
Our approach will be explicitly forward looking. And we have no hidden agenda. Where we judge changes that are already under way to regulation, firm-level controls, market structure and technology are sufficient to restore fairness and effectiveness, we will say so. Where we do not, we will make recommendations on the most important priorities for change. A defining characteristic of our Review is a recognition that improving fairness and effectiveness is a shared responsibility between individuals, firms, the market as a whole and the public authorities. As I said at the outset, we believe that markets – when they work properly – are the best source of dynamism, prosperity and progress. So I expect that a key part of the Review’s final recommendations will consist of firm- and market-led initiatives. With that in mind, we will draw on input from an independent panel of senior market practitioners, chaired by Elizabeth Corley of Allianz Global Investors, and bringing together senior representatives of internationally active market participants and investors, market infrastructure providers, major corporate users of financial markets, and independent members. The final recommendations of the Review will be made by me and my co-chairs with the support of the excellent team we have assembled. But we hope the Panel will help launch and take forward those parts of the final recommendations requiring active market ownership. Where firm-led solutions are not enough to improve fairness and effectiveness, targeted interventions by the authorities will also be part of the Review’s toolkit. Where might the solutions lie?

But its potential has not escaped the notice of central banks or the financial services industry. Both are exploring DLT as a means of reconfiguring financial infrastructures. And some believe this new technology of distributed trust could bring about a genuine transformation of money and finance. One reason to think this possible is because a similar model of distributed trust has already fundamentally reshaped a number of other products, services and businesses. We have seen the rapid emergence of businesses built on peer-to-peer interactions and transactions. These business models are underpinned by trust between buyer and seller, producer and consumer, trust which is distributed and personalised. Take the market for accommodation. This has been transformed by the emergence of AirBnB. This peer-to-peer or distributed model of accommodation among strangers is underpinned by feedback ratings which endow participants with personalised trust. AirBnB is only 9 years old but already has over three million listings. Its estimated valuation is well above the market capitalisation of established, centralised, hotel chains such as the Hilton and Hyatt. Or consider travel. Everyone has heard of Uber – itself a distributed trust model. Fewer people have heard of BlaBlaCar. This is a distributed model of riding-sharing among strangers, also underpinned by feedback ratings and personalised trust. BlaBlaCar is only 11 years old but already transports more than four million people per month, well above Eurostar or JetBlue airlines.
The improvements in productivity growth in the United States of the past decade have been followed by significant improvements in potential growth and wealth accumulation in many other countries. The scale of investable assets around the globe is very substantial, and this will be an important source of demand for risk assets. The improvements in monetary policy credibility and in financial strength developed over the past few decades mean that policy around the world has more room to adjust to deal with the challenge in the present environment. Nevertheless, the challenges that remain are substantial. The speed and agility with which public policy makers and private financial institutions respond to the continuing pressures in a rapidly evolving environment will determine how quickly and how smoothly market conditions return to normal – and how rapidly the risks to the economic outlook are mitigated. BIS Review 27/2008  7

While there is no doubt that unconventional monetary policies (UMPs) have helped stabilise the financial system and supported economic recovery after the Global Financial Crisis (GFC), many have argued that the economic or financial benefits created by UMPs have not been shared evenly. Some studies have highlighted that UMPs disproportionately enrich the “haves”, as they tend to hold more assets such as stocks and properties that benefited most from UMPs.3 Hong Kong has been experiencing this trend, especially in the housing market. With a prolonged period of close-to-zero nominal interest rates and negative real mortgage rates, Hong Kong’s housing prices have been rising for over 10 years. This has eroded housing affordability and widened significantly the wealth gap between home owners and those who have yet to buy a home. How should central bankers and policymakers think about this important issue and what can be done about it? We have lined up a couple of presentations focusing on housing today and tomorrow, which I hope will shed some light on 1/2  BIS central bankers' speeches  policymaking in this area. 6. Having looked at UMPs’ implications on asset prices, let’s now turn our attention for a moment to labour income. To the extent that UMPs have driven aggregate improvements in the labour market in terms of job creation, they have nonetheless failed to benefit some segments of the workforce that are the most in need. For example, many of the jobs created are low-paying and/or part-time in nature.
This recognition that money is necessary because of our own frailty in honouring IOUs suggests that “evil is the root of all money”. 14 Smith had seen how commodities like “dried cod at Newfoundland; tobacco in Virginia; sugar in some of our West India colonies” had been used as money and how there was even “a village in Scotland where it is not uncommon,…, for a workman to carry nails instead of money to the baker’s shop or the alehouse.” 15 These commodities guaranteed a double coincidence of wants - most people smoked, needed to preserve meat with salt, and ate fish. And because these commodities have intrinsic value, the trustworthiness of our trading partners was not an issue. Salt is salt whether offered by an honest trader or not. But it is costly to produce and hold large stocks of these commodities. Salt kept to one side for use as money has to be mined, and cannot be used to preserve meat. And the quality and quantity of the commodity is not easily verifiable. In fact, this was a pressing concern for Smith as a university lecturer because he would have been paid in person, in coin or specie, by his students before the lectures began, something which I regret I forgot to do this evening.

Coase understood the existence of firms to be a manifestation of how market based exchange between employers and employees was not efficient (see his 1991 Nobel lecture, for example). More recently, economists like Kiyotaki and Moore (an example is their 2002 paper) and many others have built models in which debt markets are incomplete because it is costly to enforce contracts, and which constrain the amount individuals can credibly borrow and pay back. These models can also be used to explain how money comes to exist, as I discuss below. Another body of work that seeks to study the institutions that underpin market exchange is the subject that has come to be known as 'law and economics'. Scholars in this field study the economic origins and consequences of the legal system. See, for example, many works by Gary Becker, Ronald Coase and Richard Posner. BIS Review 102/2006  3  laws, and to abolish the unhelpful ones. And it is that challenge of institutional design to which I now want to turn. As Governor of the Bank of England, you will not be surprised to learn that money is a social institution close to my heart. It is crucial in facilitating exchange and therefore, in allowing the division of labour.