samchain/econo-pairs-v1 huggingface dataset:
However, let us suppose that the appropriate and effective instruments for ensuring financial stability are not available, for instance because of serious problems with the regulatory and supervisory framework that cannot be remedied in the short run. In such a second-best situation, if there is a threat to financial stability, one may argue that, to the extent that policy rates do have an impact on financial stability, this impact should be taken into consideration when choosing the policy-rate path to best stabilise inflation and resource utilisation. Such considerations could result in a lower or higher policy-rate path than otherwise, in order to trade off less effective stabilisation of inflation and resource utilisation for more financial stability. 2 To the best of my knowledge, the evidence so far indicates that in normal times such a trade-off is very unfavourable, in the sense that the impact of policy rates on financial stability is quite small and the impact on inflation and resource utilisation is significantly greater. Then, in normal times an optimal trade-off would still result in policy rates directed towards stabilizing inflation and resource utilization with little impact on financial stability. In particular, it seems clear that monetary policy should not be used to target housing prices. A considerable amount of research has concluded that policy rates have a modest impact on housing prices but a substantial impact on output, implying high real costs for using the policy rate for this purpose (Assenmacher-Wesche and Gerlach 2010).

Basel II principles require all banks to address all risks, such as credit risks, market risks, operational risks and others. The principles envisage that banks should have in place systems that would help identify, measure, monitor and make provisions for such risks. The domestic banks are aware of the importance that the application of the new standard should coincide with concentration on risk management in keeping with the best global practices by using the best technological solutions. Reviewing the topics of this Symposium and the quality of its speakers, I see that it broadly covers aspects and all types of applications of banking risk management as Basel II principles seek to highlight and address. In conclusion, I express my deep thanks to the audience and the organizers of this symposium, and we look forward to having positive contributions and outstanding papers, wishing you all success. Al Salumu Alaikum Warahmatu Allahi Wabarakatuh. IS Review 125/2006  1
Secondly, banks should strengthen their capital and the liabilities susceptible to be used in the event of bail-ins in order to face on an optimal footing the regulatory challenges still pending, particularly in respect of resolution. Thirdly, the financial sector should strive in particular to enhance its reputation and to introduce measures mitigating the risk of misconduct. Fourthly, banks should address the challenge of increasing their profitability, although this cannot be at the expense of an undue easing of lending standards. Finally, and clearly not least importantly, the new technological environment, while a major challenge for the sector (in particular because of the emergence of new competitors and services), is also an opportunity that Spanish banks should take advantage of. Allow me to conclude by pointing out that, with a view to furthering the current growth phase and entrenching the Spanish economy’s potential, it is essential in my opinion to harness the still-favourable cyclical juncture to create budgetary space ahead of future recessions and introduce reforms to take over from the expansionary demand-side policies of recent years. It is likewise vital to address the challenges the banking sector has still to face, such as the reduction in non-earning assets, the improvement of its capital structure and profitability, the strengthening of its reputation and the optimal harnessing of technological developments.

Finally, in order to endow the Economic and Monetary Union with greater stability and soundness ahead of future shocks, it is necessary to continue enhancing its design and governance as regards key aspects of the Banking Union and of the Capital Market Union, and the attendant implications for a future Fiscal Union. And with this final reminder of the importance of the European institutional framework for the economic future of our countries, it is an honour for me to give the floor to the Minister of Foreign Affairs, European Union and Cooperation, Mr Josep Borrell. Thank you. 7/7
Second, a wide array of recent indicators suggest that the U.S. economy entered 2011 with substantial forward momentum.   Real personal consumption expenditure (PCE) grew 4.4 percent (AR) in 2010Q4, led by spending on durable goods (Chart 9).   The one-year, 2 percentage point payroll tax cut, part of the December 2010 tax package extending the Bush-era tax cuts, is likely to give a significant boost to real PCE over the first half of 2011, perhaps as much as $ billion. BIS central bankers’ speeches  1    Real exports have grown rapidly of late; growth has been strong among much of the emerging market world, and growth prospects among our major trading partners is promising (Chart 10).   Growth of business investment in equipment and software has been well maintained and is likely to get an added boost in 2011 from the “full expensing” provision enacted late last year as part of the tax package. This and the export strength is reflected in high levels of orders and shipments of capital goods (Chart 11).   Business investment in nonresidential structures, such as office buildings and hotels, hard hit by the recession, is still declining but at a much reduced rate (Chart 12).   Business inventories are in good balance with sales, after a very pronounced inventory cycle (Chart 13). Reflecting these developments, measures of business activity in both manufacturing and nonmanufacturing have reached substantial highs and measures of consumer confidence have stabilized (Charts 14–15).

The Federal Reserve responded to the slowing of the recovery in midyear 2010 by beginning a second round of large-scale asset purchase programs. Those purchases are resulting in a rough tripling of the Federal Reserve’s balance sheet (Chart 42).   U.S. economic conditions are currently quite far away from levels consistent with the Federal Reserve’s dual mandate of the pursuit of the highest level of employment consistent with price stability. I’ve discussed the high unemployment and unused productive capacity in the United States. Let’s turn to inflation.   While trend inflation is quite low at the moment, we see it likely to be near the low point of this cycle. The rate of inflation for nonenergy services is beginning to increase, led by faster increases in apartment rents (Chart 36). A firming of demand along with a decline of the exchange value of the dollar should begin to put upward pressure on nonfood, nonenergy goods prices.   However, underlying inflation fundamentals suggest relatively low trend inflation for some time:      A substantial amount of slack in the economy, reflected in the sharp deceleration of core services prices – and the United States is a services economy (Chart 35).   Relatively wide profit margins, so that firms facing very competitive output markets are able to absorb changes in energy and commodity prices. Moreover, unit labor costs are still falling (Chart 37).   Inflation expectations remain well anchored (Chart 38).
A new agenda for change So while the architecture may remain fundamentally the same, the plumbing of the financial system has undoubtedly been improved. This is unromantic work, but when crisis hits in the middle of the night, and unpleasant odours emerge from the system, it is the plumber you call, not the architect. However, it is reasonable to ask whether these changes are sufficient to reduce the incidence of financial crises in the future and to enhance our ability to manage such crises as will, inevitably, occur. I do not propose today to try to cover all the issues that might be raised by that general question. I certainly do not plan to talk about fiscal and monetary policies, which are no longer my area of expertise. I will also leave to one side the important developments of bankruptcy and insolvency procedures. The IMF’s Sovereign Debt Restructuring Mechanism (SDRM) proposal seems to have been shelved for the time being but, judging from recent successful bond issues by Mexico and Brazil, some solid progress is clearly being made on collective action clauses which should allow for more timely and orderly restructuring of sovereign debt in case of problems. However, all of these subjects are, as we say, above my pay grade. I will concentrate instead on the regulatory dimension. I do not propose a very radical agenda. Regulators are not normally revolutionaries.

And finally, these developments have been continuously reinforced by the strengthening of the financial infrastructure, the settlement system, the legal and regulatory framework to ensure the robustness and vibrancy of the bond market. Malaysia has benefited immensely from the development of the bond markets. As an important source of financing, it contributes to the economic growth process. It also allows for more efficient mobilization and allocation of financial resources. With greater efficiency in the intermediation process, it reduces the cost of financing. It also allows for the increased diversification of risks both for issuers and investors. In addition, it enhances financial stability through potential diversification, increased transparency and greater market discipline. The development of the bond market also enhances the transmission mechanism  BIS Review 53/2008  1  of monetary policy. Finally, and most importantly, the more developed bond market has enhanced our resilience to the implications of increased volatility in the international financial markets. The Malaysian bond market has several distinguishing features. Firstly, it comprises both the conventional and Islamic bond market. Secondly, the secondary and repo market is now growing in significance. Turnover volume in the secondary market has been steadily increasing over the years marking the active participation in the bond market by investors. In 2007, total annual turnover volume increased by 46% to RM777 million. There is also an increased diversity of instruments being issued ranging from asset-backed bonds, bonds bearing features such as stepped-up coupons and "floaters" and pass-through ABS.
As for global economic activity, the figures for the last quarter of 2016 show higher-thanexpected GDP growth in advanced economies, except in the United States; in emerging economies there were clear differences with robust growth in Asia, that prompted a moderate rise in international trade, and a further slowdown in Latin America. Similarly, indicators published in the first quarter have been somewhat more favourable than expected. In the euro area, despite the presence of the above-mentioned factors of uncertainty, the most recent economic developments show a firming of the recovery, although its strength across countries is uneven. The ECB's most recent projections in March indicate that the current phase of recovery will persist and that GDP growth in the euro area will continue to be underpinned essentially by domestic demand, with forecast growth rates of 1.8% and 1.7% for 2017 and 2018, respectively, similar to that observed in 2016. Euro area inflation climbed to 2% in February, mainly reflecting temporary factors linked in particular to energy prices, which will unwind over the year. In fact, headline inflation in the euro area slowed to 1.5% in March and core inflation (excluding energy and unprocessed food) stood at 0.7%. From a medium-term perspective, the ECB projection exercise points to inflation moving on a very gradual upward path, with the result that, towards the end of 2019, it would still stand below 2%.

What I shall retain from that experience is that the key to the Fund’s results were its willingness and ability to react flexibly to the various circumstances, its readiness to recognize mistakes and change the course of action when necessary, and all this while sitting on a ticking time bomb. This flexibility bids well also for the future. The importance of adaptability in tackling future financial turmoil can never be sufficiently stressed. In a rapidly changing world, any silver bullet can soon lose its shine. No piece of advice is sure to preserve its value over time. What we must ensure, more than defining a set of measures written in stone, is preserving the capacity of the institution to quickly generate appropriate new responses to handle new situations. Financial support is the second aspect of the Fund’s role in crisis resolution. With the emergence of the new capital account crises, the need for Fund resources has sharply increased. The access limits to Fund resources that were conceived to tackle the more traditional “current account crises” became obsolete overnight. The decision-making process tilted completely from rules toward discretion. Multi-billion packages not only became common place; over the years, the burden of financing was increasingly put on the IMF. In many respects the situation became unsatisfactory. One can easily understand that setting strict limits to Fund financing may not be appropriate in capital account crises, as it may restrict the institution’s room for maneuver too severely.
William C Dudley: The regional economic outlook Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Federal Reserve Bank of New York’s Economic Press Briefing, New York City, 26 August 2015. *  *  *  Good morning and welcome to the Federal Reserve Bank of New York’s Economic Press Briefing. I am pleased to have this opportunity to speak with you today about economic conditions in our District. As always, what I have to say reflects my own views and not those of the Federal Open Market Committee (FOMC) or the Federal Reserve System. Tracking economic conditions in our region is an important part of our work here at the New York Fed. We need to understand how the diverse economies in our District are performing—from the metropolis of New York City and its surrounding areas, to rural communities in upstate New York and the tropical island of Puerto Rico. I take all of this to the table when the FOMC discusses business and economic conditions and trends. In addition, we provide our regional analysis to the public so that everyone can benefit from our work. At today’s briefing, we will share some of this work with you. As president of the New York Fed, I believe it is essential to listen firsthand to a broad set of businesses and people in the communities we serve to get as comprehensive a picture as possible of how our region is doing.

There are more such deals in the pipeline, and I urge Chinese companies issuing green and sustainability bonds or taking green loans to seriously consider doing so in Singapore. I look forward to our continued cooperation with Chongqing. I am confident that our initiatives under the CCI will help build a more resilient, digital and sustainable future for our two countries. 3/3  BIS central bankers' speeches
The big questions now are about the extent of the slowdown and how long it will last. On an optimistic view we may be largely through the sharp downward stock adjustment, and with consumption so far holding up better than generally expected, and with the possibility that investment will recover as the spread of ICT through the economy resumes, US activity may pick up as we move, say, into next year. But the pessimist can point to the weakness of private sector saving, which could induce more cautious consumer behaviour; he can point to a possible overhang of past investment excesses; and he can point to the US external deficit which will need to be corrected at some point. BIS Review 56/2001  1  These adjustments might take place gradually over time, implying a more protracted period of relatively slow growth in the US Or, if you are really pessimistic, you might anticipate more abrupt adjustment, implying a period of negative US growth and global financial instability. The recent somewhat erratic recovery of US financial markets from their earlier gloom suggests that they may have begun to side somewhat tentatively with the optimists; but some of the survey evidence of consumer and business confidence, on the other hand, supports a more pessimistic view. The truth is that none of us knows with any great confidence just how the US situation will evolve. For what it is worth I remain modestly optimistic, but I am very conscious of the downside risks.

Domestic inflationary pressures, including wage pressures, have so far remained reasonably subdued and it is crucially important that that should continue. But it does explain our caution in moving interest rates down. Somewhat similar concerns explain my reaction to recent speculation that the Government would now make a strong push for early entry to the euro. I take no position on the five economic tests which are a matter for the Chancellor. But I do see the present external environment – and in particular, as I said elsewhere last week, the euro's present weakness – as a potentially serious obstacle to early entry. So I very much welcome the considered and cautious approach to making the assessment of the five tests, which the Chancellor set out this evening. Most people agree that sterling's exchange rate on entry to the euro would need to be substantially lower than our present rate, which few would regard as sustainable in the medium and longer term. Given the euro's present general weakness, that could come about in either of two ways. If, achieving what was considered to be an appropriate entry rate against the euro – whatever that was precisely – involved a substantial depreciation of sterling's overall, effective, exchange rate (that's to say sterling's rate against other currencies generally), that would be bound to put strong upward pressure on our domestic rate of inflation.
For example, we explore what the consequences would be if we were to raise interest rates rather than lower them. But our analyses convince us that we are following the correct strategy. Besides, that strategy has not been determined by Mr Draghi and a handful of ECB Executive Board members; it came about with the agreement of the large majority of the Governing Council, on which all national central banks governors in the euro area have a seat. I would never have imagined that the euro area could break up, as almost happened in 2012. Nor did I think it possible that the ECB would have to print more than an additional € trillion (i.e. € and pump it into the economy in order to respect its mandate. The ECB has acted resolutely but the story is not over yet. In order to emerge from the crisis, it is crucial that the other authorities also do their homework. It is not up to monetary policymakers to resolve structural problems. 2  BIS central bankers’ speeches

Third, many of their transition projects are only marginally bankable. Regulatory and political risks heighten the likelihood of default, transaction lead times are long, projects require prohibitively large amounts of start-up capital, and there is limited access to expertise in project development and financing. The current model of multilateral bank lending is inadequate to mobilise the capital that countries need for their transition. A good part of multilateral bank lending goes to bankable projects that could well have been financed by private capital. Multilateral banks tend to prioritise projects with lower risks to support their mandates of macroeconomic stability and growth. But in truth, their capital is most needed for riskier projects that are only marginally bankable but can support the transition. What we need is public-private partnership in financing that is synergistic not duplicative. We need to make every dollar of public capital count. We need blended finance. Catalytic and concessional funding from the public sector, multilateral development banks, and philanthropic sources can potentially enhance project bankability and help to crowd in private capital. They can: mitigate a portion of project risks to improve the risk-return profile and attract a broader set of private investors; provide technical assistance at the project design stage to increase the pipeline of investable projects; and facilitate the development of a mature climate blended finance ecosystem in emerging markets and developing economies. Blended finance is not new but we need to scale it up and this requires a collective effort.
Considering the dramatic price increases on the Swedish housing market in recent years, this is a completely reasonable claim. The higher housing prices are, the greater the loan required to finance the purchase of a house or flat. Finansinspektionen’s mortgage survey shows that the debt ratio for new mortgage borrowers averages 370 per cent, which is a higher debt ratio than for existing mortgage holders. On the other hand, I do not think that the difference between new mortgage borrowers and those who have owned their homes for some time is as big as I had perhaps expected. This is because people who have owned their homes for a while have had the opportunity to reduce their debts. The fact that the difference is not bigger could indicate that the households reduce their debts at a relatively slow rate. Let me return to this a little later. The debt ratio is highest among low and middle-income earners One conclusion of the government’s inquiry “Over-indebtedness in a credit society” is that the highest debt ratios are to be found among those with the highest incomes. This is the picture you get if you look at the population as a whole, that is if you also include individuals who have an income but no debts. This means that the inquiry really shows that low-income earners do not take loans to the same extent as high-income earners. If we instead look at debts in relation to incomes only for those individuals who have debts we get a different picture.

Joseph Yam: Financial market developments in Hong Kong Remarks by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the Euromoney 40th Anniversary Gala Dinner, Hong Kong, 16 July 2009. *  *  *  It is a great pleasure to be able to share the honour at this evening's Euromoney awards dinner with so many excellent recipients. And it is a particular honour to receive the award for "Outstanding Contribution to Financial Markets". This is a threefold honour. First, because it is awarded by Euromoney, a publication – or rather an institution – with a particularly strong relationship with central banks and markets in this region. Secondly, because the award is presented to the HKMA as a whole, as a recognition of the hard work of staff from all parts of the organisation who have helped develop financial markets. And thirdly, because the award highlights an area of our work that usually receives less acknowledgement than it should: the development of financial markets not just through encouraging product innovation, but also through laying down the infrastructure to enable markets to function and grow. It is, I think, entirely appropriate that this evening's event is being held in a restaurant on top of the Star Ferry Pier – as we are from time to time reminded by the swaying of the structure and the occasional battering from the ferries themselves. Transport links are a good analogy for financial infrastructural links. They involve both local and international networks.