samchain/econo-pairs-v1 huggingface dataset:
This crisis, however, shows that this view is painfully wrong. In fact, a financial bubble and even a credit boom, can have little or no effect on inflation, but that is not the point. 6  BIS Review 124/2008  Furthermore, an interest rate increase is probably unable to burst the bubble. But an excessive expansion of credit in the context of financial euphoria jeopardizes the other objective of central banks: financial stability. One important lesson from the present crisis is that we cannot wait for the bubble to burst to correct its effects. This may have worked with the technological bubble of the early 2000s, but the real-estate boom is proof that the problem can be worse. The way to deal with financial and price instability is different. For the first, the focus is on risk regulation and evaluation by the authorities. Detected vulnerabilities must be flagged and, if necessary, new regulations must be adopted. For price stability, there is monetary policy. It may well be the case that price stability and financial stability have different implications on interest rate management. The best example of this is the aggressive reduction of interest rates adopted by the Fed this year. Interest rate cuts were necessary to alleviate liquidity tensions in monetary markets and ensure the sound operation of the payments system. Failing to take these actions might have further exacerbated the financial crisis. However, conflicts of this kind are faced in extreme situations and this must be clear when making monetary policy decisions.

It is important to recognize that any credible approach to addressing the TBTF problem, including the one we are pursuing today, necessarily implies changes to the structure and business mix of financial firms and financial markets. Moreover, it is important to stress that not all of these adjustments will be in the private interests of these firms, and some will result in changes to the price and volume of certain financial services. These are intended consequences, not unintended consequences. Too big to fail is an unacceptable regime. The good news is there are many efforts underway to address this problem. The bad news is that some of these efforts are just in their nascent stages. It is important that as the crisis recedes in memory, that these efforts not flag – this is a project that needs to be seen to a successful conclusion and then sustained on a permanent basis. Thank you for your attention, I would be happy to take a few questions. BIS central bankers’ speeches  9
BIS central bankers’ speeches  9  Figure 3 Contribution to annual GDP growth (real annual change, percentage points) 20  20  15  15  10  10  5  5  0  0  -5  -5  -10  -10  -15  -15 08 III 09 III 10 Net exports (*) Government consumption GFCF  III  11 III 12 Private consumption Inventory change GDP  (*) Exports minus imports of goods and services. Source: Central Bank of Chile. Figure 4 Labor market (annual change, percent) 15  10  13  8  11  6  9  4  7  2  5  0 98  00  02 04 06 Unemployment rate (1)  08 10 IREM (2)  12  (1) Based on the survey of Universidad de Chile. Seasonally-adjusted series. (2) As from January (dotted vertical line) new indexes are used with annual base 2009=100, so figures are not strictly comparable to previous figures. Sources: Central Bank of Chile, National Statistics Institute (INE), and Universidad de Chile. 10  BIS central bankers’ speeches  Figure 5 Inflation indicators (annual change, percent) 12  12  8  8  4  4  0  0  -4  -4  -8  -8 06  07 CPI  08  CPIEFE (*)  09  10  CPIEFE for goods  11  12  CPIEFE for services  (*) Consumer price index excluding foodstuffs and energy.

This seems to respond to an attempt to rebuild inventory levels after the reduction of late 2011 and that, at the time, was linked to the expected negative effects of the external scenario on final sales. Also worth noting was the renewed strength of consumption and gross fixed capital formation. Consumption continues to rely on the evolution of the labor market and fairly stable financial conditions. Regarding investment, the contribution of construction and infrastructure works stands out, relating mainly to mining and energy projects, but also to a strengthened real-estate sector, which reflects on the performance of commercial loans. The behavior of output, especially of sectors other than natural resources, and domestic demand intensified the utilization of installed capacity. Although y-o-y growth in employment and nominal wages has dropped, the labor market remains tight (figure iv). However, the increased domestic demand pressure, especially from investment, together with lower copper prices compared with 2011, have led to a widening of the current account deficit. In the moving year ending the second quarter of 2012 this deficit rose to 2.7% of GDP, from 1.3% at the close of 2011. In the past few months, y-o-y inflation has continued on a downward path, influenced by fuel prices. Core inflation, which excludes foodstuffs and energy (CPIEFE) has stabilized near 2.5%. The difference between core inflation for goods and core inflation for services has prevailed. The latter, more closely related to the state of output gaps, has hovered around 5%, a reflection of existing medium-term risks on inflation.
Recall that one of the key attractions in working for a particular organization is association with people who are liked and respected. Do people like  2  See Corporate Executive Board, Research Reveals That Integrity Drives Corporate Performance: Companies With Weak Ethical Cultures Experience 10x More Misconduct Than Those With Strong Ones, Press Release, September 15, 2010. See also Anthony Salz, Salz Review: An Independent Review of Barclays’ Business Practices, 189‐191 (App’x C) (discussing the impact of culture on two archetypes of employee behaviors, and collecting sources). 3  Somewhat tautologically, the proof of a good culture might be the absence of bad behavior. As Bill Dudley, the President of the Federal Reserve Bank of New York, has observed: “How will a firm know if it is making real progress [on culture]? Not having to plead guilty to felony charges or being assessed large fines is a good start.” William C. Dudley, Enhancing Financial Stability by Improving Culture in the Financial Services Industry, Remarks at the Workshop on Reforming Culture and Behavior in the Financial Services Industry, October 20, 2014. 2  BIS central bankers’ speeches  and respect leaders who lack integrity? Good luck attracting top talent in that kind of organization. A third key component in a strong ethical culture is values. Most firms elaborate rules of proper behavior, often in well‐crafted codes of conduct. In some large, complex organizations, the rules can be difficult and tedious, like the rules for conflicting interests and for avoiding trading on insider information.

Similarly, if you went to your personal lawyer and overheard him refer to you in conversation with his associate as a “counterparty,” rather than as a “client,” would you worry? You should. My point here is not that banking is a profession like medicine or law. My point is about how you see your customer and the service provided to that customer. A counterparty is not someone needing your help; “it” represents a profit opportunity – something to be exploited. Their loss is your gain. A customer, by contrast, is someone to be served. It is right to charge a fee to a customer, client, or patient, but the transaction is driven by the other person’s needs. Many financial services firms, however, refer to the people they do business with as counterparties. This is no accident. It characterizes the way in which the organization views the person it is facing in its businesses. Viewing customers as profit opportunities is inconsistent with a strong ethical culture. In my experience, firms that consider their operational model as service provider tend to have a better culture than those firms that consider their operational model as money maker. The second item that I would leave out is a conception of a bank as a money making machine. This is not to say that I would ignore profitability; that would be foolish and would destine a firm to a short life.
The Governing Council of the ECB, which comprises the Governors of the 11 national central banks of the participating Member States plus the six members of the Executive Board of the ECB, has assumed this responsibility and is in charge of monetary policy decisions for the euro area. Decisions by the Governing Council will be implemented via the Eurosystem - that is, the ECB and the 11 participating national central banks (NCBs). Indeed, the introduction of the euro marks the culmination of much successful preparatory work over a period of many years. This has been reflected in the very positive and confident way in which financial markets have received the euro in the first three weeks of Monetary Union. Moreover, the enormous technical and logistical challenges posed during the changeover weekend at the start of the year have been surmounted. Monetary Union offers a unique opportunity to establish and maintain price stability within the euro area. It promises a credible and lasting environment of price stability for almost 300 million people. Price stability is at the core of the “stability culture” that we are seeking to establish throughout Europe. By fulfilling the unequivocal commitment of the Governing Council of the ECB to maintaining price stability in the euro area, we shall ensure that the single monetary policy contributes as much as possible to economic welfare in the broadest sense. At the same time, national fiscal authorities and general economic policies also have to demonstrate their commitment to the creation of this stability culture in Europe.

Mr Duisenberg reports on monetary policy in the euro area Speech by the President of the European Central Bank, Dr Willem F Duisenberg, at the New Year’s reception organised by the Deutsche Börse, at the Chamber of Commerce and Industry, Frankfurt/Main, on 25/1/99. Thank you for the invitation to speak at this New Year’s reception. 1999 is a special year: the year in which the euro was launched, and the year in which it will have to become a stable currency. This is the challenge which lies ahead. The introduction of the euro was a very happy event for all involved. The euro is present on all major financial markets around the globe. Currency trading in euro has commenced and for three weeks now shares have been denominated in euro on most European stock exchanges. Although not yet embodied in the physical form of new banknotes and coins, there is no doubt that the new currency is set to play an important role, both in the euro area and beyond. The euro is a symbol of the achievements of Europeans in the pursuit of common goals. It is unprecedented in European history. After years of intensive preparations and successful efforts towards convergence, the single monetary policy for the entire euro area is being determined by the European Central Bank (ECB).
Moreover, in addressing this question the authorities also need to take into account that some actions taken today to limit the likelihood and costs of financial instability if risks do crystallise may lead agents to underinsure again future risks. They may thus raise the probability and amplitude of future problems. Resolving these issues raises major challenges for the global regulatory community given the strong increase in financial market integration and the substantial growth in internationally active banks. Action is underway internationally 7 as well as domestically 8 to improve and strengthen the management and supervision of liquidity risk and to promote greater consistency of approach. The Basel Committee on Banking Supervision is working on producing revised Sound Practices for the management and supervision of liquidity risk. These will be released for consultation in the early summer. The Committee of European Bank Supervisors is undertaking work in parallel. The aim is to strengthen the platform for the management and oversight of liquidity risk. Among other areas for improvement, supervisors are driving higher standards for stress testing and subjecting contingency funding plans to more rigorous cross-examination before they are validated. Section V: Conclusion To conclude, developments in financial markets have increased the importance and complexity of liquidity risk management over the past decade. That, in turn, increased the vulnerability of banks to a system-wide liquidity shock. Preparations for such a shock proved inadequate and insufficient.

Today, many of the ASEAN-5 countries have fairly deep and liquid local bond markets. Central banks, whose operation is contingent on a deep and liquid bond and foreign exchange markets, have been part of the development process for the government bond market. Over the years, our financial markets have become more efficient, more sophisticated and more balanced. ASEAN-5 have moved from a predominantly bank-based or credit market to a growing capital market, both equity and bond. We have also strived to better manage the impact from volatile capital flows as we seek to balance between foreign inflows and capital outflow. Here bond markets have been instrumental to help absorb the impact from the volatilities and sudden reversal of these flows. These developments have facilitated central banks in their conduct of monetary policy, manage market expectations, and guide the path of monetary policy. Today, the ABMI is taking this development further from a domestic orientation to a regional level. This is timely in view of the increasing need for Asians to find new sources for growth and new markets for their exports, and in recognition of the need for “Asian savings to finance Asian investment”. Initiatives such as the Credit Guarantee and Investment Facility (CGIF) is a case in point that aims to foster cross border fund mobilization using the tools of a regional credit guarantee vehicle.
We find ourselves nevertheless - not for the first time - in something of a quandary. The key questions confronting us then are: First - To what extent do we expect the gradual global recovery - which is critical for our manufacturing sector - to be sustained? 2  BIS Review 59/2002  Secondly - Depending on the answer to that, to what extent do we expect the consumption growth, that we have recently been relying upon to keep overall, aggregate, demand increasing, in line with our underlying supply capacity, to continue to sustain our overall economy of its own accord? and Thirdly - Depending on the answer to that, how much risk - of an abrupt retrenchment by consumers, and a significant shortfall on our inflation target, further ahead - would we be taking, and should we take, by cutting interest rates further now, to sustain consumer demand at the expense of a further build up of household debt and continuing increases in house prices, in order to maintain the growth of the overall economy? These are all difficult questions of degree. But you can be sure that my colleagues on the MPC will continue to monitor both the global and the domestic situation with their usual vigilance - and with an open mind. There’s no doubt that these are challenging times for all of us.

Nina Stoyanova: Opening of “Fintech Summit” Conference Statement by Ms Nina Stoyanova, Deputy Governor and Head of the Banking Department of the Bulgarian National Bank, at the opening of the “Fintech Summit” Conference, organised by Capital newspaper, video conference, 30 March 2021. * * * I would like to welcome you to the annual Fintech Summit organised by Capital Weekly. Until a few years ago the term ‘fintech’ was mainly associated with small innovative companies that by using digital technologies were trying to redefine the provision of financial services and find their own place on the market. Today and even more after the watershed year of 2020, we can assert that technologies and innovations have become an intrinsic feature of the financial sector and a trigger for its rapid developing. Recent trends show expanding cooperation and technical exchange between banks and fintech companies, which is to the benefit of clients, and results in better, faster and more secure services. The coronavirus crisis and expected recovery act as an impetus for further modernisation and digitalisation in response to consumers’ demand and changes in society. In this context, the ambitions for accelerated reforms were also confirmed by the European Commission in the ‘EU Digital Finance Strategy’ and the ‘EU Retail Payments Strategy’ published in September 2020. Almost half a year after their launch, we can already note the first concrete steps in the implementation of the goals set in these strategies.
It is the Bank of England, through its operations in financial markets, purchasing government securities of a given duration, typically from non-bank financial institutions such as life insurance and pension funds, whose accounts are credited with the proceeds such that the asset purchases are financed through the creation of central bank reserves held on the accounts of commercial banks at the Bank of England”. And that explanation, it was hoped, would provide the general public with the confidence needed to encourage them to spend. You can be the jury in deciding how well this might have been achieved. There was a different explanation, and conversation, with the public that could have been had. It might have gone something like this: Q: “Andy, is QE money-printing?” Andy: “Yes. And when you get some, make sure you spend it.”  10  All speeches are available online at www.bankofengland.co.uk/speeches  10  I fully accept that this would be the wrong side of the over-simplifying line for some people. But if doing so delivers the desired policy outcome – building public confidence to support spending – that may be the better side of the line on which to err. Just saying. (b) Conversation At the Bank’s first Open Forum in 2015, Gillian Guy, Chief Executive of Citizens Advice, said something that has stuck with me. In a panel discussion on the role of finance in society, all panellists agreed on the need for improved public understanding of finance.

40  Recently, the Bank hosted a conference to mark 20 years of operational independence in monetary policy. 41  Central bank independence is also part of a social contract with the public. The conference made clear that there is nothing inviolable about that contract. Like any social contract, central bank independence needs to be adapted and improved in response to shifting social norms and economic circumstance. Correcting the Deficits  Engaging wider society is part of the process through which central banks can renew and strengthen that social contract, in the face of new social norms and changed economic circumstance. How might that best be achieved? Let me discuss three areas where the Bank of England has made progress recently and is seeking to make further progress in the period ahead: communication; conversation; and education. (a) Communication  When I first arrived at the Bank of England, I was told I would need to learn a new language. It was not one I had come across previously. There was no book from which to learn, nor any recorded tapes. It seemed to involve quite a bit of Latin, which put those of us from a state school at an instant disadvantage. You didn’t have to wear a top hat and a tailcoat when writing it, but it helped. The language was called “Bankese”. Despite its obscurity, the semantic principles of Bankese were easy to detect. The language was ruthlessly consistent in tone and content, for fear of giving mixed messages.
The Association of Banks in Singapore, or ABS, is therefore developing a Central Addressing Scheme (or CAS). •  CAS will allow payments to be made through FAST using only a recipient’s mobile number, or NRIC number, or Unique Entity Number. •  The industry is also working to provide a seamless and common user interface for making FAST transfers regardless of the customer’s bank. •  If all goes well, by this time next year, we will no longer need to remember bank account numbers for a majority of our electronic fund transfers. A second key barrier to using FAST is cost. •  SMEs have told us that some banks can charge up to $ for fund transfers using FAST. But they offer free cheque payments every month! •  This is surprising. Our own studies indicate that the marginal cost of e-payments, including FAST funds transfers, should be far lower than that of cheques. •  Cheque processing is a resource intensive operation that is far from costless. •  Banks should not be reluctant to accurately reflect the true marginal cost of their various payment instruments. Acceptance of card payments – unified point-of-sale terminals (UPOS) Debit and credit cards are widely used by Singaporeans but the experience at the acceptance points in our retail outlets and restaurants needs to be enhanced. •  Not all cards can be used everywhere, and we often have to ask merchants if our card of choice is accepted.

During the same period, the Thai baht real effective exchange rate has appreciated by only 1.8 per cent. So taking into account higher inflation in China and India, an average Thailand-based exporter has not lost price competitiveness against those based in these two countries. Viewed in this light, the export boom should not come as a big surprise. Ladies and Gentlemen, To gain the most from exchange rate flexibility, the Bank of Thailand has always sought to limit the volatility of the Thai baht-US dollar exchange rate. We do this because businesses use US dollar as invoice currency. To this end, the baht has been the least volatile currency in the region over the past year. Going forward, we will continue to take care of the shortterm volatility when we deem it to be too disruptive to export or import price-setting. Over the next 12 months, as the global financial environment becomes even more volatile, it is likely that a few regional currencies will become more flexible. Those of you who follow the foreign exchange market regularly should know that markets are beginning to take different views about regional currencies after the US dollar has lost sufficient ground. No one knows for sure which way a currency will move, but with increasing likelihood we will see more 2-way movements in regional currencies. So the key message here to all parties concerned is that they should not assume a one-way movement in any currency over the next 12 months.