samchain/econo-pairs-v1 huggingface dataset:
Naturally, we cannot anticipate the results of the forthcoming negotiations, but one principle of consistency must be observed: access to the single market must continue to be contingent on the strict observance of all of its rules. There can be no cherry picking or free-riding. And we must obviously maintain our common European trade policy if we wish to retain our clout in future trade negotiations at the global level. Third asset: our common social model in Europe. It is less widely discussed, but it is what fundamentally defines continental Europe, and it is what German and French society and public opinion share. Our social model combines a high level of public service, relatively low levels of inequality – much lower than in the United States – and a good intensity of social dialogue. And this has been achieved in a market economy. I would like to stress the extent to which this social market economy (Soziale Marktwirtschaft) is a response to the questions raised in the AngloSaxon world, rather than protectionism: Germany, like many other European countries, proves that economic success can go hand in hand with social welfare, and less inequality. We can be proud of these three assets that we have built together. But for the future, while some no longer seem to believe in the benefits of the European project, we can no longer afford to be complacent; we cannot simply rest on our laurels. II. In order to control our common destiny we need to build a better Europe.

As Jens Weidmann and I wrote last year, the equity financing of businesses, across European borders, must be a priority. Europe is lagging far behind in this area: such financing only represents 67% of GDP in the euro area compared with 125% in the United States. Thus, innovation, which is inherently more risky, is less well financed in Europe. The second project, on which we could make progress after the elections that will take place this year, is a collective economic strategy in the euro area. I know that when the French talk about coordination in Europe, the Germans sometimes think that it may be a new way to wriggle out of reforms. This deadlock must be broken: we need both national reforms and a European coordination. Growth and employment would be stronger in Europe with more structural reforms where they are a priority, such as in France and Italy, and more fiscal or wage support in countries with room for manoeuvre, such as Germany. Regarding reforms, like you, I would like France to pick up the pace; I say it frequently in my own country. But you must not consider that your French neighbour is “unreformable”. France has not been immobile over the past few years: pensions have been reformed, corporate charges have been cut considerably, and deficit reduction targets have been met. In practice, in order for this European coordination to exist, the euro area needs an institution that inspires confidence between countries.
In addition, bearing in mind the present composition of Spanish banks’ balance sheets, no major adverse impact is to be expected from the upcoming introduction into European legislation of the new limits on liquidity and leverage. It is true, however, that certain requirements could become somewhat more demanding, as a consequence of the harmonisation of the different national applications of the European legislation being undertaken by the SSM and which could affect, among other things, the implementation schedules for the Basel Accord. In any event, even assuming immediate and comprehensive application of Basel III, the capital ratios of Spain’s significant institutions would generally remain at relatively comfortable levels, although they would decline by more than the average for the institutions supervised by the SSM. It should also be noted that the work on the harmonisation of solvency ratios is not confined to the calculation of regulatory capital, but also includes measuring the total risks assumed (the so-called risk-weighted assets) on which the capital requirements are based. In this respect, Spanish banks are somewhat better prepared than other euro area peers for an increase in supervisory demands. Thus, according to the figures recently published by the Banco de España,2 Spain’s banks are among the group of institutions that apply the strictest criteria – owing to the lesser use of internal models and their higher conservative nature – to measure the risk-weighted assets used to calculate the solvency ratios.

However, putting too much emphasis on regulations can also become a double-edged sword and hinder innovation and further development, should the pendulum swing the other way. To this end, it is rather pragmatic and sound policies that remain alert to developments in financial and asset markets, and strong macroeconomic fundamentals that are our best buffers. 8. It is trying times like these that remind us of how interconnected we are and how important it is for the IMF to continue to play its role effectively as the guardian of global economic and financial stability. In our view, the Fund’s role is determined by its mandate. The Fund cannot do what it was not built to do. For example, it is neither a regulator nor a central bank. As we see it, the Fund’s role is in analyzing and evaluating policies and its impact, facilitating dialogue and disseminating, both the warning signs and the lessons learnt, providing guidance and lessons learnt, forcefully where necessary. To this end, we see three areas where the Fund can be useful:  2  BIS Review 51/2008  •  The first is in providing policy guidance to individual members. Within its surveillance mandate, the Fund should be advising members what to do and how best to respond to the fallout from the crisis. •  The second is in the provision of appropriate financing instruments to ensure that members are able to ride out the turmoil. The recent market jitters are clear reminders of a still-fragile global financial system.
Where the operations of a bank / financial holding company also include non-finance companies (industrial, construction, commercial), such holding would need to set up (or designate) a management company, which will consolidate the statements of the holding’s financial institutions and to which the powers to manage such companies would be assigned. A similar management company for bank and financial assets would need to be created by owners of parallel financial institutions, as well as by holdings and associations where the parent organisation is located overseas. It is important to us that this management company should be in the Russian jurisdiction. We envisage no need for any separate licensing of its activity, as long as it would be covered by the requirements for reporting consolidation, requirements for consolidation-based calculation of required ratios and their observance, as well as those for risk management systems, internal controls and the composition of management as are currently applicable for regulated financial institutions. The Bank of Russia should be authorised to take regulatory action against such parent organisation. We will detail our plans for regulation of banking and financial holding companies in a separate consultation report to be released shortly for public discussion. We will be ready to discuss the report in detail with all market participants. On a final note on the banking sector, I would like to announce another initiative, which is perhaps of a minor scale than those announced today, but still very topical.

The global challenges to the financial system I mentioned at the beginning include rapidly advancing non-bank financial institutions and the emergence of  10  BIS central bankers’ speeches  new types of financial intermediaries. These spell the need for a cross-sectoral approach of the regulator. And, developing such cross-sectoral approaches is one of our priorities. We plan for our tomorrow’s discussion to centre on this first cross-sectoral document of ours – the Guidelines for the Development of the Russian Financial Market. The document is sure to be of interest to representatives of all financial institutions. And, to conclude, I would like to brief you on the current efforts to develop the national payment infrastructure. You will know that this autumn we are launching Mir, the national payment card, full scale. It is essential that this payment instrument is easy to use. Hence our objective to ensure that of all cards it is Mir that would enable the operation of social media applications as developed in many regions. In this connection I am pleased to announce that in a few minutes on this stage the Bank of Russia and the Government of St Petersburg are going to sign the agreement for Mir to operate as a platform for the citizen of St Petersburg card. And that brings me to the end of my presentation. I appreciate your time. Let me wish all of you every success in your endeavours. Presentation by Bank of Russia Governor Elvira Nabiullina  BIS central bankers’ speeches  11
In 2006 foreign currency deposits rose by about 29.4 percent. The higher growth rate of foreign currency deposits versus the money supply growth rate led the ratio of foreign currency deposits to M3 to about 29 percent. The share of foreign currency deposits to total deposits rose to 38.5 percent, against 35.5 percent in 2005. 4. Demand for money  The increase in the demand for money reached its peak in December, by an annual rise of 16.7 percent. The main contribution to the increased demand for money throughout the year was rendered by credit to the economy. This contribution recorded its maximum in June, being mitigated during the coming months due to growth of public borrowing. Foreign currency position has maintained a relatively steady weight in establishing monetary assets during the year. Credit to the economy The banking system developments and the increased role of banks as financial intermediaries, have led to significant expansion of lending activity during the recent years. The loans portfolio amounted to ALL 191.2 billion or 21.3 percent of GDP at end of 2006. The loans portfolio for the economy constituted 31.3 percent of total banking system assets and about 37.4 percent of the banking system deposits. During 2006, credit to the economy increased by ALL 69.3 billion in absolute terms, compared to ALL 52 billion in 2005.

The interest rate rise by 0.5 percentage point is estimated to have normalised the annual monetary supply growth rates, fully responding to the public and private sector demand for monetary assets. Monetary policy operations have assisted in stabilizing inflationary pressures of economic agents in the medium run. Fiscal policy The Bank of Albania has estimated that during 2006, the fiscal policy provided a satisfactory support to inflation developments. Fiscal indicators were realised in accordance with the budgetary program, preventing premises for inflationary pressure rise in the economy. During the fourth quarter of 2006, a high concentration of budgetary spending was noticed. The budget deficit realization as of year-end, estimated at about 3.2 percent of GDP or 0.7 percentage point less than that of the previous year, has influenced on the contraction of inflationary pressures and control of monetary expansion. Demand factors During 2006 domestic demand has significantly sustained the positive economic growth rates. Good performance of the domestic demand has been indicated by a number of economic activity indicators. Hence, the sales index for the first nine-month period of the year recorded an annual growth of 12.4 percent. In particular, the rise of imports of machinery and equipment and the real estate credit growth are indicators of investment expansion in the country. The domestic demand has been increasing also due to rapid growth of lending  4  BIS Review 80/2007  activity, which recorded a 57 percent increase in annual terms.
Part of the work involves developing a fairly small model that can serve as a reference and a basis for discussions and deliberations within the Bank and the Executive Board. The thinking behind this is that this model will contribute to disciplining and structuring discussions and to consistent argumentation across issues and over time. Moreover, this model could serve as an aid in our external communication on monetary policy and our view of the functioning of the economy. The model must satisfy the following requirements:  1. The model must have a well defined equilibrium  The model must be predicated on the experience gained in the 1970s and 1980s, which showed that we cannot increase employment in the long run by accepting higher inflation. In the long run, inflation is a monetary phenomenon. 2. Inflation expectations must be modelled explicitly  We must have a line of reasoning and a model that takes account of the forward-looking behaviour of economic agents when making decisions. Agents take account not only of today’s economy policy, but their expectations as to future economic policy. As mentioned, it may be difficult to form a perception of how expectations are formed. An advantage of modelling expectations explicitly is that we can analyse the effects of different views on how they are formed. 3. Monetary policy must have a defined role in the model  The model must address monetary policy’s main task: providing a nominal anchor. 4.

Lastly, it is crucial that the projects are chosen so as to maximise the size of their impact on economic activity and public finances. For this purpose, it would be helpful if the funds were distributed on the basis of a structural reform plan designed to strengthen the economy’s long-term growth. Indeed, the structural improvements required by the Spanish economy could be facilitated by using some of the European funds available to introduce them. A certain volume of investment may be needed to initiate some of these structural improvements or to smooth the transition costs, as in several of the cases that I intend to refer to later on, so that the use of public funds for these purposes would in my opinion be fully justified. Accordingly, depending on the speed with which the funds are made available, their nature (loans or grants from the Community budget) and, especially, the extent to which they are used to boost growth, the impact of these funds on activity in the coming years may vary from several tenths of a percentage point to several percentage points of GDP. Thus, for every € billion of rapid-execution European grants used for productive investment, the estimated impact on GDP over the next two years would be around 0.3 percentage points. In contrast, if that same amount were used to finance current spending, the impact on the recovery would barely average 0.1 percentage points of GDP over the next two years.
But I think there is much more to be said for "one country, two systems" beyond politics and governance, for the simple reason that there are many differences between the two systems within our country, on whatever dimension one chooses to examine the situation, and differences present opportunities for relative strengths to be exploited and relative weaknesses to be addressed, and synergies maximised to the benefit of all concerned. The economic system on the Mainland, described as a socialist market economy, is very different from the economic system of Hong Kong, a capitalist free market economy. The medical system on the Mainland is different from that in Hong Kong, in terms of the manner in which medical services are delivered and funded, and in terms of the types of medicine used. The tax systems are also very different, so are the labour systems, the educational systems and the transport systems (we drive on different sides of the road); and, of primary interest to me as Monetary Authority, so are the monetary and financial systems. China is therefore probably unique in having two different systems, including two different financial systems, in one country. I believe that, beyond politics and governance – the arrangements for which have been quite well bedded down – there is perhaps a need for all concerned to pay greater attention to the opportunities presented by the differences between the two financial systems and to developing a beneficial working relationship between them.

Andres Lipstok: The Estonian economy Speech by Mr Andres Lipstok, Governor of Bank of Estonia, at a lunch for the EU Deputies, organised by the Ambassador of the Czech Republic, Mr A Langer, Tallinn, 28 May 2009. *  *  *  Excellencies, Ladies and gentlemen, I am genuinely pleased for the invitation of Ambassador Langer to join you here at the working lunch. First of all, I would like to provide a short overview of Estonia's current economic situation and the plans related to the adoption of the euro. Afterwards I would be glad to discuss these issues with you. The global crisis has had a strong impact on Estonia's small and open economy via trade channel. Collapse of world trade and decreasing demand in Estonia's main trading partners has decreased considerably also Estonia's exports. Although financial channel is also somewhat strained, we have not witnessed particularly excessive tightening of credit inside the banking groups that operate in Estonia. Estonian banking market is fully integrated into Scandinavian groups, which has provided stability. Estonia's banking sector has enough capital and liquidity to support restructuring in the real economy. The global turmoil is clearly not over yet, though there have been some signs of stabilisation over the past months. Estonia, too, is showing some signs of stabilisation and confidence indicators have also slightly improved. However, it has to be stressed that outlooks for this and next year are highly uncertain everywhere in the world.
Such a convergence and harmonisation can only happen with greater engagement among the regulators, practitioners and scholars in Islamic finance in the international community. Finally this integration process also requires greater cooperation among the regulators to ensure that the Islamic financial system is not subject to vulnerabilities and abuses and thus ensuring its soundness and stability. In this respect, the sharing of information among the regulators including across borders is important especially in a more globalised and liberalised environment where financial transactions and activities have become more complex and globalised. In this regard, there is a greater need for regulators to be continuously connected to share information on key issues and developments faced in their own financial jurisdictions. In this respect, the Islamic Financial Services Board has an important role to facilitate this process. Closer financial linkages among Islamic financial institutions from different jurisdictions is essential to contribute towards accelerating the process and towards serving as a bridge to strengthen the relationship of the international Islamic financial markets as well as the investment and trade ties between regions. Such linkages within the industry could also lead to new product offerings and to co-arranging financing. There could also be mutual development of IT systems and other technologies including other research and development endeavours. Finally, let me touch on the development of the socio-economic aspects of Islamic finance.

Clearly, just as business solvency cannot be analysed without reliable and uniform accounting information, the risk of environmental activity cannot be evaluated in the absence of comparable information. Allow me to conclude by stressing the importance of us all making every effort to row in the same direction so as to achieve an ambitious goal such as decarbonisation. Events like today demonstrate the resolve and commitment of all those involved with this challenge. We must act realistically, mindful of the limitations, but also with sufficient ambition to overcome the difficulties we will have to face. I wish you all a very productive session. 2/3  BIS central bankers' speeches  Thank you. 3/3  BIS central bankers' speeches
The country also boasts of a suitable climate, peace and a multi-party competitive democratic political system. The country thus possesses all the necessary attributes for sustainable economic growth and development. However, most economic resources remain untapped due to low investments. The low investment levels in the country could partly be attributed to the lack of knowledge of the local situation by the potential investors. In order to complement, Government’s efforts in marketing the country’s investment potential, we all need to use our contacts and friends to disseminate information on the vast economic potential that exists in the country. With the current economic challenges emanating global financial meltdown, the need for increased investment levels in the country can not be over emphasised. Therefore, I challenge all of us gathered here today, to take advantage of the Alumniportal and market not only our Curriculum Vitaes or businesses but also our country. Such initiatives will no doubt increase awareness among businessmen outside the country and lead to increased investment that would result in job creation that our citizens so much need. We are therefore in a better position to contribute a little to the economic growth of our country through this Alumniportal. Distinguished Ladies and Gentlemen, personally, since my graduation from Konstanz University in 1985, I have managed to keep my contacts close to my heart. I have continued to benefit immensely from the interactions and friendship with most alumni from my days in Germany. I can even boast that in the process my contacts have expanded ten fold.

This is costly and no business can be profitable in the medium to long term without proper networks in their business lines. Net working is about creating a set of contacts and subsequently building a trusting and genuine relationship with these people. Networking provides the opportunity to discover people who may be able to offer assistance to one’s business and who may also benefit from the assistance that one has to offer. In this global economy, millions of transactions are made on a daily basis across borders, regions and continents. For these transactions to be cost effective and profitable there is need to remove information asymmetries and to reduce the risk of moral hazard. These significant impediments can greatly be avoided by counting on the contacts that one may  BIS Review 150/2008  1  have in a different country region or continent. The end product would thus be increase in economic welfare for all. Your Excellency, at a country level, Zambia still requires significant levels of investment in many sectors of the economy to achieve desirable levels of growth. The country possesses abundant natural resources and human capital. It is also surrounded with eight neighbouring countries and close proximity to the large market of South Africa, a surface area of over 750,000 sq km, and an approximate population of over 11 million people. Its active participation in the SADC Trade Protocol and the COMESA/FTA offers preferential tariff access to market potential of about 380 million plus people.