samchain/econo-pairs-v1 huggingface dataset:
There has also been greater international dialogues between global Shariah scholars through several platforms and structured forums. This greater engagement facilitates convergence in interpretation and the greater leverage on technology for the active dissemination of information at real time further facilitates the harmonisation process. The next stage however is the need for more efficient information dissemination that would promote greater market transparency, price discovery and industry insights. The development of the Islamic Financial Knowledge Repository Portal by ISRA that will be launched today will be an important effort that can contribute to meeting this objective. As a knowledge database it centralises Shariah rulings and its justifications, legal and regulatory requirements. This is enriched by the latest collection of research and development in Islamic finance. This database will become an important source of reference and guidance for Shariah and industry practitioners, policy makers, researchers and academicians. This initiative by ISRA will not only promote greater understanding but mutual respect and recognition of Islamic finance. Concluding remarks The global Islamic finance industry is transitioning to its next stage of development and will stand to benefit from an enhanced universal appeal with a wider consumer and business segment, greater financial inclusion and harmonisation through increased research and development and more effective dissemination of information. A strong culture of applied research and development in Islamic finance that promotes innovative financial engineering, through practical and useful applied research findings is an integral part of industry-building efforts to support the industry’s growth.

Greater collaboration will be important to create greater synergy of expertise in applied research and development in Islamic finance. Initiatives by industry associations collaborating with local and international research institutes and academia to seek for new global research findings and breakthroughs will enhance the potential for increased product development activities. This Colloquium that is organised by ISRA following the success of the inaugural Colloquium last year, to discuss the new research findings for the various segments of the Islamic financial industry with the expectation that it will contribute to opening new horizons for the future development of Islamic finance. On this note, let me wish you a productive and successful Colloquium. I would also like to congratulate ISRA on the launching of its new Islamic Financial Knowledge Repository. BIS central bankers’ speeches  3
On the evening of September 16th, we advanced $ billion in credit to AIG through a fully collateralized lending, and announced the term sheet for what would become an $ billion revolving credit facility with AIG (Fed Facility). 1 Some have asked why the Federal Reserve did not see the threat that AIG posed to the financial system before September 16th. The short answer is that AIG had hundreds of regulators, none of which was the Federal Reserve. The Federal Reserve had no regulatory authority over the firm – no authority over its capital, no authority over its liquidity, and no oversight over its control functions. The Federal Reserve was not engaged in supervision of AIG. It did not have the legal authority to do so. These roles and responsibilities remained with state insurance regulators, and with the comprehensive consolidated supervisor, the Office of Thrift Supervision. Throughout the weekend of September 13th and 14th we were assured by those regulators that a private sector consortium of commercial banks had a solution to AIG’s liquidity problems, and we had no basis to question those assurances. But then Lehman filed for bankruptcy protection and the private sector consortium unequivocally stated that they were no longer prepared to lend to AIG. The AIG situation is both different and similar to that of Long-Term Capital Management (LTCM), a hedge fund that nearly collapsed in the fall of 1998.

Pension plans that had placed funds in AIG guaranteed investment contracts, or GICs, which function much like deposits in a bank, would have experienced significant losses, losses that would be passed along to retirees or to others whose aspirations to be retirees would surely have been changed. BIS Review 73/2010  1  And these indirect consequences of an AIG bankruptcy would not have stopped at the U.S. border. AIG was global in scope. It conducted its operations in more than 130 countries, and across various parts of the financial industry, insurance as well as banking. The damage from an AIG filing would have been felt from the farms of Iowa to the streets of San Francisco to the far off corners of the world. The unplanned and chaotic bankruptcy of this trillion dollar financial conglomerate (especially a day after Lehman’s filing) would have been a global catastrophe. That catastrophe did not happen. More than a year and a half later, it is easy to forget the level of panic and fear that gripped the world during the week of September 16, 2008. A bankruptcy of AIG would have fueled the fear, much as gasoline fuels a fire. And let us not forget what Federal Reserve and Treasury officials have said many times in testimony – we did not have the necessary tools, such as legal authority for a special resolution regime, with which to limit the damage of an AIG collapse. We also did not have the luxury of time.
Since then many lessons have been learned and, with the help of the EU Commission, the ECB and twinning agreements with Ireland, Austria and France, a big effort is being made by the NECC to avoid the repetition of past mistakes. Some four-and-a-half thousand businesses have applied to enrol in the FAIR initiative. Dual pricing will become mandatory on July 1, and in fact many sellers have already started to display prices in both currencies. Consumers, therefore, have reason to feel reassured. At the same time, it must be understood that a low-inflation changeover will depend on a number of factors. Competitive pressures keep sellers honest; but for competition to work, buyers must be vigilant and assertive, taking advantage of dual price displays and other information material that will be available. Moreover, there must be zero inflation on all government-supplied products/services. In fact, the national master plan requires public  BIS Review 59/2007  3  sector entities that want to smoothen monetary amounts in euro to submit a business case to the Ministry of Finance showing that it is to the consumer’s advantage. One advantage Malta has compared to a country like Italy, for example, is that any Maltese lira amount will translate into a larger number of euros, and for that reason there will be less justification for sellers to round euro prices up. Exact conversions that will leave the cost of living unchanged will always be possible, also because very low denomination euro cent coins exist.

Wage increases have been moderate and cannot, therefore, be blamed for the recent setback in competitiveness. The cause is weak productivity growth, averaging just 0.1% between 2001 and 2005, compared with 0.5% in the euro area. So that while wage moderation remains essential in today’s competitive environment, higher productivity levels are indispensable to sustain economic growth and living standards. As I emphasized in my Statement, the response to this challenge must, sooner rather than later, include measures designed to influence all the determinants of productivity growth. The needs here are well known. Key among them are policies to further improve the quality of human capital and to attract even more high-value added foreign direct investment; the need to reorder priorities in public spending to align them better with the Lisbon Agenda goals; a more cost-effective delivery of support services to exporters by both public and private sector suppliers; the adoption of more efficient work practices; and policies to raise the labour participation rate, especially for women. In your statement you also call for means testing. Aren’t you treading through a political minefield? It is only a political minefield because we have allowed it to become one. Generations of politicians have fostered the belief that governments have the means to provide all citizens, irrespective of their financial means, with an extensive range of free services and benefits.
17  Figure 10  Probability of MPR hikes implicit in market assets (*)  Breakeven inflation, 5 in 5 years (percent)  (percent)  2,4  2,4  100  1,8  80  1,2  60  0,6  40  0,0  0,0  20  -0,6 ene.16 16  -0,6  0 16 Aug.16  U.S.  1,8  Germany  1,2  Japan  0,6  jul.16 Jul. ene.17 17  100 Fed (Dec.17)  80 60  Fed (Jun.17)  40 20  ECB(Mar.18) 16 16 Oct.16 Dec.16  0  17 Feb.17  (*) Fed fund future contracts are used for the Fed; OIS for the ECB. In parentheses, the month at which the hike is expected. Source: Bloomberg. Figure 11 Exchange rate (1) (2) (accumulated change since January 2013, percent)  60  60  OER  45  45  30  30  15  15  MER-X RER  0  0  -15  -15 Multilateral dollar  -30 13  14  15  16  -30 17  (1) Increase (decrease) indicates depreciation (appreciation). (2) March 2017 data contain information up to the statistical cutoff date. Sources: Central Bank of Chile and Bloomberg. 18  Table 2 International scenario 2.015 €  2016 (e) Dec.16 Report  Mar.17 Report  Terms of trade Trading partners' GDP World GDP at PPP World GDP at market exchange rates United States China Eurozone Latin America (excl.

Even more importantly, longer-term real rates are also below or around these levels, reflecting that the market considers that monetary policy not only is expansionary now, but is expected to remain so for some time, in line with the communications of the Bank itself. The lower interest rates are reflected not only in the record-low level of risk-free rates, but also in that borrowing costs are now very low by historic standards. This applies both to mortgage loans and to commercial and consumer loans. The exchange rate has also reacted. In nominal terms, the peso is now about 35% below its levels of mid-2013. Compared with other countries, however, the behavior of our currency has been similar, so that multilateral and real depreciation have been less. Finally, from the perspective of other countries that have had cycles similar to ours, monetary policy rates in Chile are among the lowest in real terms. Nonetheless, we must recognize that, even in normal situations, the effectiveness of monetary policy is not guaranteed, but depends on its correct implementation. This means respecting certain basic principles. Monetary policy, first and foremost, must be coherent with its policy framework and the situation of the country. This implies refraining from favoring short-term objectives, but rather calibrate the monetary impulse in such a way that projected inflation stands at 3% over a two-year horizon. Consistency is especially important to avoid unnecessary ups and downs in the economy causing market confusion.
Literacy and numeracy are prime examples here, where there is universal coverage during the early school years. This makes perfect sense in building the educational basics. Take mathematics. This is compulsory for every student in the UK (and in many other countries), at least up to age 16. The bottom of the educational pyramid is, in effect, population-wide. After that point, the educational pyramid narrows quite sharply (Figure 1). Only 12% of the population studies maths between the ages of 16-18. And less than 1% study it beyond age 18, at college or university. This degree of specialisation also makes sense. Not everyone wants, or needs, to be Stephen Hawking. 50 51 52  Patel and Gibbon (2017). ING-Economics Network Survey of the Public’s Understanding of Economics (2017). Report prepared for the National Council on Economic Education by Harris Interactive (2005). 13  All speeches are available online at www.bankofengland.co.uk/speeches  13  How well the UK educational systems provide students with even the essentials of numeracy is another 53  matter. The statistics here tell an ugly story, with 17 million adults in the UK having numeracy skills no  better than those expected of a primary school child. illiteracy, where the figures are equally ugly. 55  54  And it is a short hop from innumeracy to financial  Nonetheless, in coverage at least, maths education has a  broad base, as befits a subject needed by almost everyone almost every day of their lives.

As we enter into a gradual stabilisation and recovery period, policymakers are now faced with the challenge to find an enduring solution to ensure the stability of financial systems. Islamic finance has a role in shaping the future of the global financial system and reinforcing ethical and moral values that are inherent in Islamic finance principles and fundamental towards promoting the stability of the global financial system. Ongoing efforts to further strengthen the resilience of Islamic financial industry would enhance the prospects for global growth and the potential of Islamic finance to contribute towards global financial stability. 4  BIS Review 129/2010
Lorenzo Bini Smaghi: Inflation and deflation risks – how to recognise them? How to avoid them? Speech by Mr Lorenzo Bini Smaghi, Member of the Executive Board of the European Central Bank, at XXI Villa Mondragone International Economic Seminar “Global Crisis and Long Term Growth: A New Capitalism Ahead?”, Tor Vergata Economic Foundation and CEIS – Centre for Economic and International Studies, University of Rome, Rome, 24 June 2009. *  *  *  Introduction 1 Let me begin by thanking the organisers for inviting me to this conference in Villa Mondragone. It’s a honour to give the “Riccardo Faini Lecture”. Riccardo was not only a great Colleague, at the IMF and at the Italian Treasury, but also a friend. The international economy is going through one of the worst recessions in generations. Demand and output have fallen sharply and synchronously in many developed and developing economies. Unemployment has drifted up. Global trade has shrunk for the first time in almost three decades, leading some to talk about incipient ‘de-globalisation’. Spare capacity has grown, dampening inflationary pressures – in central bank speak, downside risks to price developments have emerged – and fears of a sustained period of deflation are spreading. On the other hand, unprecedented recessionary forces have elicited an unprecedented policy response. Monetary policy has been swiftly loosened, both with conventional and unconventional tools. Governments have embraced aggressive fiscal expansions.

Thus, it is useful to complement this measure with expectations extracted from inflation derivatives. In particular, inflation-linked swap rates provide a measure of the expected inflation rates at short horizons (one and two years ahead, for example). 8 One-year inflation swap rates fell sharply in the second half of 2008 (slide 13), following the decline in oil prices and the worsened macroeconomic outlook, and remained between 0.0% and 0.5% until recently. However, they have returned to levels above 1% since early April 2009. The chart also displays market uncertainty about the future inflation outcomes in the euro area, represented by the coloured areas. Unsurprisingly, uncertainty has increased since October 2008. Furthermore, in line with developments in point expectations, the probability associated with negative inflation readings within a 12-month horizon increased in the months following October 2008, as indicated by the shaded areas below the zero line, but has declined somewhat in recent months. The evolution of the term structure of inflation expectations suggests a similar pattern of gradual adjustment at slightly longer horizons (slide 14). Two-year-ahead inflation expectations have moved in tandem with shorter inflation expectations. Yet, the fact that they have never become negative, and that they are now back at levels ‘close to, but below, 2%’ – which is the ECB’s definition of price stability – offers further ‘comfort’ for monetary policy. It should be kept in mind that the liquidity of shorter-term inflation swaps is somewhat inferior to longer-horizon contracts, and the readings should thus be interpreted with appropriate care.
strategy to be applicable as a concrete guide for monetary policy. Second, to combat the cause of the disease, not its symptoms, but within the precise confines of our mandate. According to our diagnosis, the cause was the pricing of a catastrophic event – exit from the euro – into governments’ debt valuations. The symptom was – once more – an acute liquidity crisis for banks. The framework of the outright monetary transactions (OMTs) is now well known. Here, I’ll limit my remarks to one specific aspect of this new policy initiative, which we announced in early August. It’s the fact that this initiative is entirely in the tradition of our non-standard monetary policy instruments. Let me explain. Broadly speaking, there are two approaches to non-standard monetary policy. The first one can be referred to as “quantitative easing”. It focuses on the importance of portfolio balance channels in the transmission mechanism. In essence, it aims to inject further stimulus in a situation in which the policy rate is constrained by its lower bound. 5 Under the second approach to non-standard policies, a central bank does not aim to withdraw duration risk from the economy. It relies on the market-functioning channel and aims to reduce the spread between the yield paid by risky securities or standard loan contracts and risk-free securities with the same maturity. It does not necessarily aim to inject additional stimulus in lower-bound conditions, but to repair a breakdown in asset pricing and in the functioning of the credit market.

Rather, building upon the theme of your prior panel discussion, the risk that dominates from my parochial view is the escalating and evolving cyber threat to our financial and payment systems, representing the challenge of our generation. The orientation that I want to pursue, reflecting this audience, is not what we are doing within the Federal Reserve to harden our critical infrastructure. While that is a manic and consuming preoccupation it is not my focus today. Instead, I want to concentrate on endpoint security vulnerabilities to the payments system, in which partnership with the institutions in this room represents an indispensable element of success. Historically, market infrastructures have operated on the presumption that endpoint security is 1/4  BIS central bankers' speeches  principally the responsibility of the endpoint, and infrastructure security is principally the responsibility of the operator. In the United States, the legal framework for wholesale funds transfers codifies that presumption, with each actor assigned responsibility for that part of security most within its control. Yet, in the present environment endpoint security breaches can have serious implications for public confidence in the integrity of the network as a whole, even in circumstances when the operator’s infrastructure, applications, and security perimeter have not been compromised. A series of recent high profile events have underscored dramatically this endpoint security risk, a theme that has also captured the attention of global policy makers.
The Second Quarter Speech given by  Andrew G Haldane Chief Economist Bank of England  30 June 2020  The views expressed here are not necessarily those of the Bank of England or the Monetary Policy Committee. I would like to thank Shiv Chowla and Andre Moreira for their help in preparing the text. I would like to thank Andrew Bailey, Daniel Gray, Jonathan Haskel, Gregory Kidd, Sevim Kosem, Clare Macallan, Becky Maule, Michael Saunders, Michal Stelmach, James Tasker, Silvana Tenreyro, Ryland Thomas, Jan Vlieghe and Tugrul Vehbi for their comments and contributions. 1  All speeches are available online at www.bankofengland.co.uk/speeches  I would like to discuss today the economic outlook in the UK in the light of the Covid crisis and the way monetary policy is responding to this crisis. There is a debate about which letter of the alphabet will best describe the path of the economy, with some scepticism about the V-shaped scenario path in the Bank’s May Monetary Policy Report (MPR). It is early days, but my reading of the evidence is so far, so V.  Covid-19 is, first and foremost, a global public health crisis. The measures put in place to contain the spread of this terrible disease have been necessary, but have had severe economic and financial consequences. As a result, most countries around the world are facing a twin crisis of public and economic health. The economy in the period ahead will continue to be shaped by the virus and policy responses to it.

Two key issues remain: how to fund the backstop at a sufficiently high level to be credible, and how to create a swift decision-making process to deal with emergencies – if we need 1/3  BIS central bankers' speeches  weeks, it is useless. The euro area also needs a system for providing liquidity to financially sound banks after resolution – one that is provided by the Eurosystem and secured by a highquality public guarantee. I’m fully convinced that once we have a credible and efficient mechanism for resolution, it will be much easier to reach a pragmatic compromise on deposit insurance, probably with a focus on liquidity sharing between national guarantee schemes. Let me add two thoughts on substance: First, on anti-money laundering. In this area, I am convinced that we need to enhance our approach by building on a network of national authorities and EBA that should ensure an effective single anti-money laundering supervision. This means that EBA should have the legal and human capacities to foster convergence of practices on the best standards, based on clear European mandates. It should go as far as including effective breach of law reviews and a capacity to directly intervene in some cases with European-wide impact. Second, what we have managed to achieve for banks can serve as an example for financial markets.