samchain/econo-pairs-v1 huggingface dataset:
This is of course not the only news about the UK economy since May. And nor am I inviting too literal an interpretation of my thought-experiment. I offer it simply as a means of sizing the upside news to the economy since May, illustrating its presumptive implications for monetary policy and providing a baseline against which downside risks to the economy can be judged, including from higher unemployment. It was this judgement that lay behind my decision to leave the monetary stance unchanged at the June meeting. Looking ahead, risks to the economy remain considerable and two-sided. Although these risks are in my view slightly more evenly balanced than in May, they remain skewed to the downside. Of these risks, the most important to avoid is a repeat of the high and long-duration unemployment rates of the 1980s, especially among young people. Like the rest of the MPC, I stand ready to adjust monetary policy, at speed, if needed to support the economy and return inflation to its target on a sustainable basis. At the same time, it is important to recognise the limits to what monetary policy can achieve. Monetary policy can help to deliver the monetary and financial conditions necessary to support households and businesses – and is doing so. But monetary policy can do relatively little to avoid problems caused by structural or sectoral shifts in the economy, such as structurally high rates of unemployment.

This is an important initiative to ensure our companies have skilled directors on their boards, who can help them to grow and expand in the region, and be recognized leaders in both performance and governance. Developing practical guides for listed companies and directors A second issue arising from the study has to do with developing practical guides for listed companies and directors. This is in line with helping companies help themselves on the path to better corporate governance, MAS will work with industry and professional bodies on practical guides on areas of interest to companies. BIS Review 73/2007  3  The importance of an effective audit committee in particular was highlighted in the corporate governance study by Professor Mak. It noted that almost all corporate scandals involved some form of financial impropriety, with the audit committee often seen to be part of the governance failure. Some guidance on the roles, functions and skills required by an audit committee would be useful. We need to encourage well-qualified directors to take on the critical responsibility of being a member of an audit committee. Such practical guidance notes could be useful in helping directors on audit committees to understand their roles relative to that of senior management. It could also provide better focus on how they can add value by enabling the important interaction between strategy and financial and accounting controls. I note that the UK has issued similar guidance on Audit Committees – otherwise known as the Smith Guidance – to assist companies. Conclusion Let me conclude.
Whether it is liquidation or resolution that beckons makes a difference, as resolution can materially reduce both the private and social costs of bankruptcy. Relative to a world in which liquidation is a credible threat, having an effective resolution regime will tend to reduce the cost of bond finance and so increase its share in the capital structure. But as explained earlier, it will tend to raise the cost of bonds and reduce their share in the capital structure relative to a state of affairs in which government bailouts are confidently expected. Effective  5  See Kashyap, Rajan and Stein (2002), “Banks as liquidity providers: an explanation for the coexistence of lending and deposit-taking”, Journal of Finance, vol, 57(1), pp. 33–73. 6  See Kashyap, Lamont and Stein (1994), “Credit Conditions and the Cyclical Behaviour of Inventories”, The Quarterly Journal of Economics, Vol 109, Issue 3 (Aug. 1994), P565–592. That bank failure itself has wider spillovers, through impaired credit availability, is itself another departure from Modigliani-Miller, which assumes that all households and firms have symmetric access to credit markets. 7  In addition, the management of the bank will find themselves out of a job. In contrast to the managers of failed firms in other sectors, they face regulatory hurdles to re-entering the industry. That provides a clear incentive to avoid a fragile capital structure. As widely discussed, that needs to be reinforced by remuneration packages that expose their wealth to downside risks. Agency issues internal to banks are not covered in my remarks today.

While these have proven effective in other countries, they are still relatively novel here.8 By acting, assessing, and if necessary re-calibrating, we are more likely to strike the right balance to support durable growth over the medium term. That’s why authorities have already moved. Last autumn we took our foot off the accelerator by removing capital relief for banks on new mortgages and, with the Treasury, by re-focussing the Funding for Lending Scheme away from mortgages towards business lending. Those steps were followed by the implementation in April of the Mortgage Market Review to reinforce banks’ underwriting standards and the stress test to underpin their capital discipline. The FPC has a wide range of other tools if further action is justified. We can direct lenders to raise capital held against mortgages or against all credit. Thanks to the FCA, we are now able to recommend a tougher interest rate stress to which new borrowers are subjected when banks assess affordability. We can also make prudential recommendations about the share of high loan to income, loan to value and long tenor mortgages in banks’ and building societies’ new lending. In this regard, I applaud the Chancellor’s intention to grant the FPC additional directive powers in relation to these aspects of mortgage portfolio composition. I also welcome the Chancellor’s commitment to adjust the Help to Buy Mortgage Guarantee Scheme to comply in full with any FPC actions.
In turn, these experiments will lead us to assess whether the regulatory framework currently in force needs to be adapted since we are carrying out these experiments within the current legal framework. Besides, this autumn, the Eurosystem has adopted a similar hands-on approach for its experiments on a digital euro for the general public, in which we are participating, alongside with the ECB and other Eurosystem central banks. The experiments underway directly relate to the need for the Eurosystem, should circumstances so require, to be ready to issue a CBDC in order to ensure that central bank money is accessible to the general public and to preserve their freedom of choice of means of payment and their confidence in our currency. 4/5  BIS central bankers' speeches  *** To conclude, let me say that a thriving, creative and efficient innovation ecosystem is a key element in the transformation of the financial system towards greater efficiency and stability. This is why at the Banque de France and the ACPR, we feel it is important to support it and contribute to it. 5/5  BIS central bankers' speeches

According to the results of the 2015 PISA report, which evaluated for the first time the financial capabilities of pupils at the end of their secondary education, Spain stands significantly below the average for the 15 countries that participated in this evaluation, and it is ranked eighth out of the 10 OECD member countries that participated. Sustainable finance One last change directly affecting us, and which merits highlighting, is the environmental challenge. The term “environment” should be viewed as broadly as possible here. Previously, when talking about the environment, I was referring to the regulatory framework in which we move, to the prudential supervision we undertake, to the economic reality in which agents act and to society as a whole. Now, “environment” must go beyond this, referring also to climate and to the consequences human actions have on it. It is here, moreover, that the aforementioned conflict between short-term actions and future benefit, in the very long term, are most manifest. The long term in this case is related to the life of future generations, which magnifies the importance of the matter. If we turn to look at society again, there is clearly growing awareness regarding the climate challenge. What are the public authorities doing in this respect? Though not with sufficient speed, it is to be acknowledged that the ecological transition is gaining visibility and importance on the agenda of international financial organisations.
Ladies and Gentlemen, let me take this opportunity to say a few words about the phenomenon of Corporate Social Responsibility. Corporate social responsibility has become an integral part of conducting business in most internationally acclaimed and world class organizations and institutions, of which the Bank of Zambia is striving to become. The acknowledgement of the importance of corporate social responsibility, in my view, has come about as a result of most corporate bodies realizing that they actually have more than just a little responsibility towards the communities in which they exist and do business. After all, these same communities cannot be distanced from any economic activity, just as one cannot live without the other. Let me, in this regard, take this opportunity to urge all Commercial Banks, Non-Financial Banking Institutions and other corporate bodies that are involved in community work and corporate social responsibility to please continue assisting the needy. There are numerous projects that are in dire need of assistance. And to all those corporate bodies that are actively engaged in corporate social responsibility programmes, allow me to commend you and urge you not to relent in your efforts to bring the communities you serve closer to you. Distinguished Guests I hasten to add that the Bank of Zambia has not been alone in this project to restore the MUKUYU TREE. The Bank has partnered with the Kabwe Municipal Council leadership with whom we have signed a Memorandum of Understanding (MOU). This MOU outlines the accountabilities of the various parties.

Caleb M Fundanga: Corporate social responsibility in Zambia Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Launch of the Mukuyu Tree (Slave Tree), Kabwe, 23 December 2006. *  *  *  • The Provincial Minister of Central Province • Hon. Sydney Chisanga, MP • Hon. Rev. Gladys Nyirongo, MP, Minister of Lands • Hon. Kakusa, MP • Your Worship, the Mayor of Kabwe, Mr Richard Yumbe • The Deputy Mayor of Kabwe, Mr Edward Phiri • The Town Clerk, Mrs Vivian Chikoti • Distinguished Invited Guests • Ladies and Gentlemen A very good afternoon to you all. It gives me immense pleasure to be here this afternoon in the town of Kabwe, which also happens to be the place in which I spent my childhood. As you are aware, we are here to celebrate the occasion of the lighting of the legendary MUKUYU TREE, popularly known as the Slave Tree. For many of you Kabwe residents present here, especially our senior citizens, this tree rekindles many happy memories of joyous occasions such as Christmas, Independence Day and Labour Day, when the TREE would shine brightly after being adorned with beautiful multi-fluorescent lights for all to admire. The MUKUYU TREE is one of Zambia’s national monuments. Its history spans more than a century of being part of the lives of the community in this area. Ladies and Gentlemen, This historic monument invokes memories of a sad but important aspect in our beautiful country’s history.
Even though this figure is not a trend setter, it is sufficient to reduce fourth-quarter growth, which in turn weighs in the revision of estimated 2016 growth, which now stands at 1.5%, i.e., the floor of the forecast range we estimated in September. Despite the performance of activity in October, partial fourth-quarter data suggest that the behavior of domestic spending has not changed significantly. This, in an environment where the labor market is adjusting gradually, with an unemployment rate that remains low (although strongly influenced by increased selfemployment) (figure 4). In turn, although with monthly fluctuations, wages show annual expansions around their historical averages. Bear in mind that the decline in inflation has accelerated growth in the wage bill in real terms (figure 5). As I said, the main event abroad was the American election. It opened a number of questions about the external economic outlook, characterized by highly expansionary monetary policies in the developed world. One such question is about the potential effects of a fiscal package in the US, which the financial markets estimate to be very likely. This yielded the way to increased inflation expectations, prospects of a not-so-expansionary monetary policy, a strengthening of the dollar and reduced appetite for longer-term securities. Thus, long-term interest rates have increased substantially in the US, and have been replicated in the rest of the world with varying intensities. In this context, financial conditions facing emerging economies have tightened, although they remain positive from a historic standpoint (figure 6).

Still, we must be aware that accumulated trust does not suffice; in our present world such trust must be renewed every day, on the basis of the ability to respond to new demands and challenges. I will comment on some of these challenges towards the end of my presentation. On the recent evolution of the economy, the most noticeable event has been the drop in inflation. After several quarters in which the annual CPI variation was above 4%, in recent months it fell sharply to 3%, placing y-o-y CPI inflation at 2.9% in November. We had foreseen inflation declining at a slower pace. In the Monetary Policy Report we presented to the Senate last September, we projected that annual headline inflation would close this year at 3.5%. Today, private expectations—as well as our own—put it a little under 3%. In addition, in the baseline scenario I will be describing in a moment, we assume that this decline will continue, such that during most of 2017 annual CPI inflation will stand in the lower part of the tolerance range, to start converging back to the target by year’s end. Domestic activity has also shown some surprises. It grew in line with forecasts in the third quarter and even somewhat better in sectors not related with natural resources—what we call Other GDP. However, it began the fourth quarter quite poorly. The decline in mining activity weighed significantly, as has been the trend throughout the year, and so did some specific industry lines.
Thus, in terms of labour cost competitiveness, Malta has kept pace with the euro area average. However, to maintain competitiveness a further focus on the wage setting process may be appropriate. In particular the basic principle must be to emphasise that productivity improvements are at the basis of sustained wage increases, and that these are best negotiated at firm level, where improvements in productivity can be best gauged. Consequently, any cost of living adjustments should form part and parcel of the collective agreement and not be superimposed on collective agreements by legislation as happens today. Indeed, already a number of collective agreements incorporate the COLA increase, and I suggest that this should be the norm. Another important message that has emerged from the sovereign debt crisis is the need for fiscal prudence, which provides the space for countercyclical fiscal policy during a downturn. In the euro area, fiscal policy is the major macroeconomic management tool at the national level. Thus, in periods when economic activity is relatively strong, policy needs to be sufficiently prudent to build the necessary fiscal buffers that would be utilized during periods of weaker growth. BIS central bankers’ speeches  5  In the aftermath of one-off expenditure during 2008, the deficit ratio in Malta declined in 2009 despite the recession of that year and narrowed slightly further in 2010. The debt ratio generally declined until 2008, but then picked up in 2009, partly in response to the contraction in the economy.

The origins of the crisis We are all aware that the sub-prime mortgage crisis in the US during 2007 and the subsequent collapse of Lehman Brothers in September 2008 sent shock waves to the financial markets that plunged the global economy into the most severe recession since the Great Depression of the 1930s. However, although these two events did trigger off the international financial crisis, the sovereign debt crisis in Europe was largely home-grown, characterised by cases of excessive risk-taking by banks, imprudent fiscal policies on the part of a number of governments as well as shortcomings in the institutional framework of Economic and Monetary Union. With the adoption of the euro, most euro area countries benefitted from the greater credibility that the monetary policy, decided collectively by the Eurosystem, offered within a legal framework that ensured its independence and promoted price stability as its primary objective. In addition the advent of the single currency also meant a significant step forward towards the completion of the EU single market, which was viewed as an important element in bringing about faster economic growth in the European Union. The establishment of the euro area led to a significant reduction in both nominal and real interest rates, especially for the fiscally weaker member states, as these converged to German benchmark levels.1 This reduction in interest rates, coupled with stronger economic growth expectations in the euro area, gave rise to faster growth in, and cheaper interest rates on, credit to both households and non-financial corporations in many of these countries.
At the same, this conclusion should not be taken too far, so that the tendency is assumed to be permanent. As we have seen, there have been periods when the rate of price increases for imported consumer goods has been held back by other factors than just an altered exchange rate pass-through. In a situation where resource utilisation is high, a weakening of the exchange rate is no longer perceived as transient and favourable one-off effects have ceased to act, the pass-through from exchange rate movements can be larger than what we have observed in recent years. Currency interventions and transparency Before concluding, I would like to say something with reference to the discussion that arose in connection with the Riksbank’s currency interventions in June. First I should underscore that for a number of years now we have taken great pains to be as open and clear about monetary policy as it is possible to be. I have no qualms about claiming that during the past five years we have become one of the world’s most transparent central banks. What we have achieved in this respect is something of a cultural upheaval. The most recent step, in spring 1999, was that we began publishing the minutes of the new Executive Board’s monetary policy meetings. As I have explained in other contexts, transparency and clarity serve several purposes. They can enhance monetary policy’s credibility and legitimacy. They can also make monetary policy more predictable.

Norman T L Chan: Monetary policy’s effect on wealth distribution and a way forward for policymakers Welcoming remarks by Mr Norman T L Chan, Chief Executive of the Hong Kong Monetary Authority, at the Hong Kong Monetary Authority and Federal Reserve Bank of New York Joint Conference, Hong Kong, 23 May 2019. * * * 1. Good morning, President Bullard, Director Hirtle, ladies and gentlemen. Welcome to this conference jointly organized by the Federal Reserve Bank of New York and the Hong Kong Monetary Authority. I would especially like to thank our overseas guests who have travelled a long way to be with us today. 2. Over the past 40 years, the global economy has undergone impressive growth and transformation. From 1980 to 2018, PPP-adjusted real per capita GDP in advanced economies and emerging market economies have increased by 94% and 205% respectively1, driven by globalisation, open markets, technological advancements, and the general trend of falling inflation. 3. But the news is not all good. While the world economy has done well on the whole, economic inequality has widened noticeably at the same time. Just take a look at the Gini coefficient, which is a commonly cited measure of income inequality.
That would be a positive effect of the crisis. Why study economics? The British economist Arthur Cecil Pigou once noted what he considered to be the true purpose of economics in society: “The complicated analyses which economists endeavour to carry through are not mere gymnastics. They are instruments for the bettering of human life. The misery and squalor that surround us, the injurious luxury of some wealthy families, the terrible uncertainty overshadowing many families of the poor – these are evils too plain to be ignored. By the knowledge that our science seeks it is possible that they may be restrained. Out of the darkness light! To search for it is the task, to find it perhaps the prize, which the “dismal science of Political Economy” offers to those who face its discipline”. 1 Most of us may find these words rather grandiloquent. Economics is a subject that makes positivistic attempts to explain the interaction between firms, households and government. But the subject can also in more normative terms be used to indicate how society and markets should be organised. It took many years for economics to gain its own department at the University of Oslo. In the 1800s, political economy, as it was called at that time, was initially placed under the faculty of law. It was not until 1932 that the University Institute of Economics was established as a department in its own right. Many attempts have been made to define economics.

It would be a step towards greater freedom if we could liberate ourselves from the blind submission to the randomness in economic life, which seems to the individual to be a force of nature. We must seek to master economic forces rather than being mastered by them. To this end, a deliberate, planned and coordinated economy is necessary.” 6  4  In Tore Jørgen Hanisch, Espen Søilen and Gunhild Ecklund (1999): “Norsk økonomisk politikk i det 20. århundre. Verdivalg i en åpen økonomi (Economic policy in Norway in the 20th century)”, Høyskoleforlaget, p. 38. 5  In Agnar Sandmo (2006): “Samfunnsøkonomi – En idéhistorie (Economics – a history of ideas)”, Universitetsforlaget, p. 117. 6  Espen Søilen (2002): “Mot et samfunnsøkonomisk Optimum (Towards an economic optimum)”, in a series of reports by the Committee on Power and Democracy. BIS Review 109/2010  3  Norway was among the countries that went particularly far in developing an economy with a high degree of centralised coordination and control. It may perhaps be said that this work culminated in the 1973 proposal to establish an incomes policy council. The social partners were to undertake a commitment to keep negotiated wage increases within specific limits. The proposal to establish an incomes policy council was logical. It was the last wall in the structure erected after the war.