samchain/econo-pairs-v1 huggingface dataset:
What matters is that the system as a whole has the right level of liquidity to cope with volatility in derivatives markets in a stress and that liquidity is in the right place  We need to understand which market participants were caught flat-footed and why. Thanks to post- 2008 liquidity reforms, banks seemed able to handle the liquidity pressures they faced in March, including from margin calls. But non-banks such insurers, pension funds, hedge funds and asset managers have grown in importance over the past decade - we need to examine how well prepared they were to face the liquidity demands around margins. It’s too early to reach policy conclusions. But to preview the options in front of us: It’s possible we’ll want to explore solutions that could reduce the need for CCP margin to rise as much in stress by pre-positioning more liquidity at CCPs during quiet periods. It’s possible we could accomplish this by spreading existing good practices in CCP model design. It’s equally possible we’ll want to focus on better liquidity risk management, particularly for non-banks. This could make sure market participants self-insure against margin calls on their own balance sheets – rather than pre-positioning initial margin at the CCP. Improving transparency around potential margin calls could help support this. It’s possible that we’ll want to do some of both. 10  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  10  The right balance of policy responses will depend on what evidence we find.

I welcome the current initiatives, including the creation of the Simplification Group chaired by Petra Senkovic from the ECB and Edouard Fernandez-Bollo from the ACPR. Various measures are under development, like the growing use of delegation, the streamlining of SREP or JST functioning. However, an essential challenge will be to make sure that all processes will remain optimised over time and that simplification becomes a full and permanent part of decision-making, from conception to execution. To do so, simplification has to become one of the values that guide the SSM. The second priority is to promote mobility, thanks in particular to staff secondments and more on-site supervisors working on banks outside their home country. Other initiatives could include very short staff exchanges or swaps within JSTs, between the ECB and national authorities, to allow members to better understand the culture and practices of their 2/3  BIS central bankers' speeches  counterparts. The third and final priority is to develop synergies. Just as with the Eurosystem, the Banking Union constitutes a system with a strong center and strong national components, which ultimately have to act as one team. The goal is to make the best use of national resources by fostering their participation in all key tasks of the SSM. National authorities should not hesitate to step up their involvement in the SSM. In return, the ECB should further empower national authorities, especially in the framework of day-to-day supervision and in the field of on-site inspections in branches or subsidiaries of significant institutions.
Second we can lend liquid assets – including cash – against assets that are, or have become illiquid. That is what we did with the Special Liquidity Scheme and more recently the Funding for Lending Scheme. In 2009 the Bank launched two schemes making outright purchases of assets other than gilts.10 We started to buy sterling commercial paper (up to 3 months maturity) and investment grade corporate bonds. At that time, in the worst conditions of the recession, the markets for these financial instruments had not been functioning normally. An increased demand for liquidity and heightened concerns about counterparty risk, caused many markets to dry up and asset prices to fall. By intervening as “Market Maker of Last Resort” the Bank was able, over about a 12–18 month period, to support the markets for both commercial paper and corporate bonds and drive prices back to more appropriate levels. The commercial paper scheme came to a natural end as prices rose and our holdings – which peaked at about £ in 2009 – matured. The corporate bond scheme is still in operation. Each week we offer to buy from a list of bonds, or sell from our stock. After reaching a peak in 2010 of some £ in holdings, the revitalized market has steadily bought the bonds back from us so that our stock is now only around £ Curiously, we still get people advocating the purchase of corporate bonds in large scale as well as gilts.

Governor Veerathai’s Statement Your Excellency, Fellow Governors, Ladies and Gentlemen, Members of the press,  A very good afternoon to you all,  It is my great pleasure to welcome our distinguished guests to this special event before the year ends. Let me extend a very warm welcome to Governor Agus and Governor Muhammad Ibrahim who have both travelled to Bangkok specifically for this occasion. The year of 2016, which is coming to the end soon will be remembered by economists and financial professionals as a year of the unexpected, beginning from China's circuit breaker in the very first week of the year, to negative policy rates, to Brexit and the US elections. Greater uncertainties now hang over the global economy. Fortunately, our ASEAN region, with its high potential, is a bright spot in the world. This is therefore 1  time for us to navigate today’s uncertainties through our concerted efforts to bring out the potentials of our ASEAN region. What we are witnessing here today is a renewal of the spirit of regional integration by relying more on collaboration to serve as a key driver for sustainable growth to benefit all of us. The MoUs that we are about to sign will provide flexibilities on foreign exchange regulations for the settlement of trade and investment in local currencies, resulting in greater efficiency and convenience for businesses. Another key merit of this framework is that businesses will be able to better manage exchange rate risks.
Third, we are working hard to forge closer international links through co-operation with Islamic finance centres and organisations. Establishing business links is particularly important in face of the challenges brought by the integration of Islamic finance with the international financial system. In this regard, I am pleased to mention that Hong Kong has formed a working group with the Dubai International Financial Centre Authority to promote the mutual development of Islamic finance and financial market infrastructure. Closing remarks In closing, I would like to point you to an analogy often made between the rise of Islamic finance and the renaissance of the Silk Road. Let’s remember the Silk Road, in ancient times, was China’s link to the outside world and a route for trade and exchange of art, music, culture and religion. Today, Hong Kong is right at the heart of the New Silk Road, standing astride East and the West, and providing a gateway to business and financial opportunities. We have already painted a picture of how the financial regulators and industry associations will strive to promote the development of Islamic finance in Hong Kong, and we hope very much that the enormous forces of the market will make the New Silk Road as prosperous and significant as the old one. Thank you very much. 4  BIS Review 59/2008

It will also enhance public confidence in the efficiency and performance of the financial system to contribute to the overall development of the economy. This approach is also a move towards a differentiated regulatory and supervisory approach whereby companies that demonstrate strong corporate governance standards and risk management practices will be accorded 'lighter regulatory touch', which implies that they will be given greater regulatory flexibility. This underscores the importance of capacity building by the financial institutions in research and development and re-engineering of business processes in search of operational excellence and enhanced customer service delivery. A strong culture of excellence is therefore vital: one that is embedded in all levels of the organisation; one that fosters and rewards innovation and service quality. A customer-centric focus is, and will continue to be, the winning formula for a successful financial services provider. In particular, insurers must ensure suitability of products sold or advice given; play an active role in enhancing financial capability of consumers; and ensure policyholders are treated fairly. This regulatory approach will basically benefit those companies that are efficiently-run and wellcapitalised. In this regard, Axa Affin will benefit from this new regulatory approach if it puts in place a risk management system that could be used to capitalize incentives accorded by the new framework. The synergies derived from the strengths of the bank and the experience of foreign insurance partner should be harnessed to benefit from this new environment, particularly in the bancasurance line of business.
First of all, when talking about liquidity, it is important to clarify that, in the field of central banking and monetary policy, there are at least four distinct definitions of liquidity – each with its own implications for policy-making. The first relates to “central bank liquidity”, which is provided to the money market in order to steer short-term interest rates. The second refers to the general “monetary policy stance”, as summarised by the level of policy interest rates. The third relates to “financial market” liquidity, which is defined as the ease with which large volumes of financial securities can be traded, without affecting the market price. The fourth refers to “ monetary liquidity”, which is defined in quantitative terms on the basis of monetary and financial aggregates. While all are important – indeed key – to monetary policy-making in the current environment of strong money and credit growth at the global level, I deem it necessary to say a few words on this last type of liquidity. I think you would agree that it is difficult to precisely measure global monetary liquidity. There seems to be no universally accepted definition of it among economists. Several measures have been suggested and they all differ in many respects. They can be based on different monetary and credit aggregates; they may vary according to geographical coverage; and finally, they can be constructed using different types of aggregation. Even more challenging is diagnosing at what point global monetary liquidity becomes excessive.

Jürgen Stark: The external dimension of monetary analysis Dinner speech by Mr Jürgen Stark, Member of the Executive Board of the European Central Bank, on the occasion of the ECB workshop on “The external dimension of monetary analysis”, Frankfurt am Main, 12 December 2007. *  *  *  The role of monetary analysis in the monetary policy process remains a topic of utmost importance to all central banks, whatever the strategy they pursue. It is pertinent to adopt a new perspective on monetary analysis, focusing on the impact of the global environment on monetary developments and how they should be assessed. Given the recent financial turmoil that has affected global markets, in part via international capital flows and global financial linkages, it is important to link monetary analysis to international developments. Let me come straight to the key substantive issues. In essence, I see three main topics for discussion: First: How can we assess global liquidity and what are its implications for consumer, commodity and asset prices? Second: What evidence is there of possible links between global monetary liquidity, international portfolio flows and domestic monetary growth? Third: In the context of the influences exerted by globalisation and, specifically, cross-border capital flows, what are the implications for monetary policy? In my remarks, I will address each of these issues in turn.
Most of the financial regulation developments have been carefully designed and implemented. 3  While governments have changed, the goal to develop and improve the financial system has remained and therefore those announcements have progressively materialized. To provide a few recent examples that were addressed in previous Chile Day meetings, some of those measures include the implementation of Basel III banking regulation standards, the development of Financial Market Commission (CMF) as a strong integrated financial supervision authority, and the agenda of the Central Bank towards the internationalization of the Chilean Peso, among others. This positive interaction of good policies and consistency in its implementation has greatly contributed to create the resilience that allowed the Chilean financial system to withstand both external and internal shocks. The International Monetary Fund in the latest Financial Sector Assessment Program (FSAP) performed last year, highlighted that the Chilean financial system has been resilient to recent shocks, with a robust regulatory and supervisory framework and an adequate response by the financial authorities to the effects of Covid-19. This points out to the ability of the local financial system to maintain: (i) Access to financing for companies and households, (ii)· Access to hedges in foreign currency, (iii) Stock market operating normally, (iv) Uninterrupted payment system, (v) Solvent and liquid banking system and robust financial infrastructure.

In Japan, good news comes from the labor market – with unemployment at 3.8%, the lowest rate in eight years – and from private consumption that is waking up after a long period of stagnation. Emerging Asia continues to show high growth rates, led by China and India. In particular, China surprised with an annualized growth rate of 11.9% the second quarter. Growth is fairly widespread with important contributions from retail sales, investment in fixed assets and exports. Despite sharp rises in world prices of foods and fuels, CPI inflation has remained stable in the U.S., the euro zone and Japan. In the U.S., recent indicators show a fall in core inflation and are more consistent with inflation converging to the ceiling of the comfort zone defined by the Fed’s open market committee. In the euro zone, despite 1.9% of annual inflation in the  BIS Review 87/2007  1  past two months, output growing above potential, combined with the closing of output gaps and strong credit growth, there is a higher risk of inflation acceleration, which has led the ECB to continue with its process of monetary policy normalization. In Japan, although inflation is still low, with an expanding economy, the Bank of Japan introduced two rises of 25 basis points each in the policy rate to reduce distortions and vulnerabilities associated to excess liquidity. In China and other emerging economies, inflation is increasing.
SPEECH  Monetary policy and inflation Speech by Governor Ida Wolden Bache at the Centre for Monetary Economics (CME) / BI Norwegian Business School on 20 October 2022. Introduction Good afternoon everyone, and a big thanks to the Centre for Monetary Economics, which has held this event for more than 20 years. As I recall, it was first held just two months after Norges Bank had been assigned an inflation target for the conduct of monetary policy. Since then, the way we practice inflation targeting has evolved. But the primary objective of monetary policy has always remained firm, which is to ensure low and stable inflation. Chart: High inflation in many countries Up until fairly recently, inflation was indeed low and stable. If anything, many central banks worried that inflation would remain too low. Now they have the opposite concern. Both in Norway and in many other countries, inflation is higher than seen in several decades. The increase in inflation raises a number of questions: Why is low and stable inflation an objective of monetary policy? Which prices should monetary policy stabilise? And how do we strike a balance between the aim of low and stable inflation and the aim of high and stable employment in the current environment? These questions are the theme of my lecture here today. But first, let me say a few words about how we got here.

[17] We have a solid tradition whereby the social partners take into consideration firms’ profitability and employment developments in wage negotiations. There may therefore be a reduced need to tighten monetary policy in response to a cost shock than would otherwise have been the case. At the same time, in today’s situation we must guard against a rise in inflation expectations with inflation entrenched at a high level. That would make it more demanding to bring it down. To quote another predecessor, Svein Gjedrem: “Price stability is not self-generating”. Thank you for your attention. References Caballero, R.J. (1991), “On the Sign of the Investment-Uncertainty Relationship”. American Economic Review, 81 (2). Coibion, O. and Y. Gorodnichenko (2015), “Information rigidity and the expectations formation process: A simple framework and new facts”. American Economic Review, 105 (8). Fischer, G. (2013) “Investment choice and inflation uncertainty”. The London School of Economics and Political Science Working Paper 11/2013. Fischer, S. and F. Modigliani (1978). “Towards an Understanding of the Real Effects and Costs of Inflation”. Review of World Economics, 114 (4). Galí, J., J.D. López-Salido and J. Vallés (2007): “Understanding the Effects of Government Spending on Consumption”. Journal of the European Economic Association, 5 (1). Huizanga (1993). “Inflation Uncertainty, Relative Price Uncertainty, and Investment in U. Manufacturing”. Journal of Money, Credit and Banking, 25 (3). Husabø, E. (2017). “Utforming av inflasjonsmålet” [Design of the inflation target]. In Røisland, Ø. (red), “Review of Flexible Inflation Targeting (ReFIT) – final report”. Norges Bank Occasional Paper 51 5/2017.
And these improvements in the stability of the system and efficiency of the process of financial intermediation have probably contributed to the acceleration in productivity growth in the United States and in the increased stability in growth outcomes experienced over the past two decades. These generally favorable judgments require some qualification, however. These changes appear to have made the financial system able to absorb more easily a broader array of shocks, but they have not eliminated risk. They have not ended the tendency of markets to occasional periods of mania and panic. They have not eliminated the possibility of failure of a major financial intermediary. And they cannot fully insulate the broader financial system from the effects of such a failure. The resilience demonstrated by the financial system in the face of the major macroeconomic and financial shocks of the past two decades owes something to the nature of those shocks and the ability of the monetary authorities to mitigate the effects of those shocks. And there are aspects of the latest changes in financial innovation that could increase systemic risk in some circumstances, by amplifying rather than dampening the movement in asset prices, the reduction in market liquidity and the associated damage to financial institutions. My remarks today focus on the challenges these developments, particularly the growth in the over-thecounter derivatives market, present for risk management professionals.

These issues need to be addressed on the ground, with proper enforcement by management to prevent misselling practices, unclear documentation or explanations by agents and marketing staff, and contract terms and exclusions that are unreasonable. Wide gaps have also been observed between companies in the level of competence of staff selling the products, and in the quality of training provided to staff and agents. There is a need to achieve greater, as well as more consistent, progress in this area. Bank Negara is determined to improve standards in the area of market conduct, and we will continue to actively engage the industry in this effort. I hope that all insurers will throw their support, at the highest level, behind the various initiatives that are being implemented by both the Bank and industry associations to achieve this. As a newly-formed alliance, the Tokio-Marine-Asia Group has a valuable opportunity to set the correct tone at the outset in this area for your Group’s priorities in the Malaysian market. I trust that you will use the opportunity wisely to set a new benchmark in responsible market conduct for the industry. On that note, let me once again congratulate Tokio Marine and Asia on the official launch of TM Asia Life Malaysia Bhd. I look forward with great anticipation to your positive contribution to the further development and growth of the Malaysian insurance industry. BIS Review 24/2007  3
First of all, by creating a direct relationship between our profits and the funding of an important element in our system of social security, the initiative would establish a dangerous link, since it would certainly place the SNB under constant pressure to distribute more profits in the future. Higher profit distribution would only be possible if we took bigger investment risks or if we reduced our monetary reserves. Markets would start to ask themselves whether the SNB's goal was to ensure the monetary stability of the country or to generate profits. As I pointed out before, there is a risk that constant debate on this topic could sap market perception of our independence. This would damage our credibility and hamper our monetary policy. At the end of the day, implementation of this initiative would undermine confidence in the Swiss franc. Second, the initiative assumes that our profit distribution can be held permanently at a level above CHF 1 billion a year. This is an illusion. The only possible outcome is bitter disappointment on the part of our fellow Swiss. All our calculations show that, as confirmed in the remarks made by the President of the Bank Council on the results for 2005, the SNB's medium-term profit distribution potential amounts to only CHF 1 billion a year. If we deduct the gains due to the spectacular increase in the price of gold and to exchange rate gains from the CHF 12 billion profit recorded for 2005, the distributable profit falls to CHF 2 billion.

What is more, the world economy is still characterised by profound imbalances, such as the deficit in US external accounts and the lack of flexibility in the Chinese monetary system. Turning now to monetary policy, there were often considerable disparities in 2005, for instance, the progressive hikes in the rate of interest in the United States at a time when monetary policy in Europe was characterised by a waiting-game approach. Despite these potentially destabilising factors, financial markets remained relatively calm. In currency markets, the dollar picked up in the wake of tighter US monetary policy, while the yen moved only slightly against the Swiss franc. The exchange rate of the euro against the Swiss franc fluctuated within a narrow range, thereby reflecting the strong convergence of fundamentals in Switzerland and the euro area. Over the past few months, the Swiss franc has even trended downward – a decline that is hard to explain given the low rate of Swiss inflation as compared to the rest of Europe. If this trend  2  BIS Review 34/2006  were to accelerate and give rise to an excessive relaxation in monetary conditions with respect to economic developments, a normalisation of interest rates would become even more essential. Generally speaking, the capacity of financial markets to absorb shocks and to cope with imbalances is one result of globalisation and the progress in financial intermediation. In addition to stimulating goods markets, globalisation has also enlarged and deepened financial markets, and is doing so to a growing extent.