samchain/econo-pairs-v1 huggingface dataset:
You cannot change the rules as you go along. That to me, is very essential. So at the moment we are trying to make those rules very clear to all the market players in various forms. We have already done so in most of the markets, in the foreign exchange market, in the fixed income markets, and I think the SEC is now trying to establish the rules in the equity market. Once all that comes together I think you will see a significant improvement in the way our entire financial sector operates and hopefully that will be the main conduit for financing of development in the years to come. So this deals more or less with the challenges we have in the financial space and our efforts to ensure financial stability. But really, it is the third objective, which is the economic development of the country that I wish to spend a few minutes on today. This is the area, which, for various reasons central bank has engaged and disengaged over the years and decades. Basically, the bank took a backward step about fifteen to twenty years ago and very understandably so, because that was the time when the war was raging and we had our own problems to contend with, particularly in-terms of ensuring stability. Therefore the central bank did not pursue aggressively a strategy of engaging with the rural sector and with the broad development of the entire country.

I am not saying that we should only focus on the Northern Province, even the Southern Province. We have a branch in Matara, but I think there is a lot of work to be done. I recently visited areas around Hambanthota, and I find that the potential there really, is still not exploited. There are a few factories here and there, few agricultural projects that we are funding, but we are nowhere near the sort of potential we can achieve particularly since so much infrastructure has been installed in that area and built in recent years. I think that infrastructure is not being used. We have the rather comic situation today where an airport is being used to store paddy because of a mismatch of the needs of that airport to be economical with the needs of the broader economy which has other pressing problems to be achieved. So this is a classic example how we have to put on our thinking caps and come up with solutions for the government. One big advantage that we have is that central bankers have through the decades, manned very important government institutions. Even when I look today, institutions as varied as the Ministry of Defense, the Ministry of Finance and such like have very senior central bankers working there in some form or another. And even in the legal sector, the Attorney General’s Department is working very closely with us.
We will honor the laws of the nation and our international agreements. There will be no imprudent adventures. The social and political choices will be carried out within the federal budget, with a review in priorities and a quest for excellence in management of the resources. I am positive of this evaluation. As the head of a financial institution for 28 years, of which 12 were served as President in Brazil, I have carefully followed the President's and his party's trajectory since 1989, when I first met with the President and his team. I had many chances to interact with the Party, including in successful partnerships in the social area. This allowed for increasing comfort with the personal relationship. In summary, President Lula and I started from different points of view but Brazil brought us close together. On the other hand, within my duties in the administration of a Global Corporation I was the person with ultimate responsibility for the Bank's investments and those of its clients in all countries in which we operated. Under these responsibilities, it was required that we track the evolution of the governments and economic policies of some 30 countries around the world. I saw amazing examples of success and of failure. I can assure you that my experience allows me to be confident in what I see from President Lula's government. Brazil is on the right track.

It is a system that reduces the monetary authority's discretion, and is especially effective in eliminating the risks of political influence in policy decisions. Many countries have adopted this regime, among the developed economies, these include the United Kingdom, Canada and Sweden; while among emerging economies they include Chile, Thailand and South Africa. A key purpose of the inflation target regime is to coordinate inflation expectations. Tthat contributes to fulfilling the targets and once the targets are achieved, credibility is enhanced. Therefore, it is essential that we work towards preserving this credibility, eliminating any doubt as to the commitment to fight inflation. It is important to highlight that this fight against inflation should be carried out with no artificial measures, as the effectiveness of such measures is temporary, and they introduce short and longterm distortions in the economy. An ally in the inflation targeting regime is the floating exchange rate regime. In our country, where there is still dependence on foreign capital, this regime is adequate, as it directly absorbs part of external shocks. The exchange rate in this regime has as a purpose establishing equilibrium in the balance of payments. Its flexibility helps ensure that the demand for foreign currency will equal the supply without draining the Central Bank's international reserves. The inflation targeting regime helps to buffer the shocks hitting the economy. The flexibility of this system facilitates the absorption of these shocks, while transparency in the rules allied with explicit targets reinforce credibility in the fight against inflation.
The increased openness in the economy that has resulted from among other things the NAFTA and GATT agreements, has meant that foreign trade has functioned as a “shock absorber” for fluctuations in domestic demand. Finally, fortunate circumstances seem to have played a part. With the end of the Cold War at the beginning of the 1990s, resources were freed up, principally in the military sector, which could be put to more productive use in the private sector. Further, both the Mexican crisis and the Asian crisis have been shocks that have checked certain tendencies towards overheating and thus also inflation, yet without leading the economy into recession. During the crises, a “flight to quality” appears to have led to falling long interest rates, which has benefited stock exchange prices and strengthened the dollar. Foreign investors have been willing to finance the deficit in America’s current account, which at present comes to about 4% of GNP. To sum up, it seems likely that a certain rise in the growth potential has taken place in the USA during the 1990s and that inflationary tendencies have declined. Just how much nevertheless remains an open question. The OECD, for example, has raised its estimate of the potential growth rate to just over 3%. However, in the past three years growth has amounted to more than 4% on average, which means that the OECD regards some of the factors discussed above as temporary in nature and expects growth to slacken as these factors die away.

Since the inflation risk premiums are low, employees will not need to demand extra high nominal wages to insure themselves against unexpectedly high inflation. This is because it can be anticipated that the central bank will tighten monetary policy. This in turn will mean that less stringent measures will probably be required than would be needed by a central bank that had not yet established its credibility. BIS Review 132/1999  2  Turning more specifically to the situation in Sweden, it can be said that the macroeconomic conditions today are favourable: inflation is low, budget deficits have been transformed into surpluses and the prospects for growth are good. However, economic policy is a continuous learning process and the successes of recent years should not be taken as evidence that the structural problems have been solved. On the labour market, for example, structural rigidities remain; also, the tax-pressure is still high, which inevitably distorts incentives to work and save. As far as monetary policy is concerned, the credibility of the inflation target regime has as yet hardly been tested in a period of economic upturn. What does this mean for how much and how often monetary policy should react to changes in the economic outlook? This, of course, is a question that the Executive Board of the Riksbank addresses on an ongoing basis, communicating its views in inflation reports, the minutes of its meetings and speeches.
Unemployment, in particular among youth, has risen sharply and many people have a dark view of the future. In the meantime, the acute crisis in the euro area must be addressed. Banks and governments have fallen into a vicious cycle. Banks were rescued by extensive government measures during the financial crisis, but banking sector exposure to sovereign debt is substantial. This debt has not vanished, but shifted hands. When a country’s debt-bearing capacity is called into doubt, it also has an adverse impact on banks. The events of recent years have brought fresh experience and reminded us of several historical lessons. Economic policy must be sustainable. Governments must save during upturns in order to weather downturns. At the same time, there are limits to what economic policy can accomplish if the economic foundations are eroded. A competitive business sector is crucial to maintaining growth and welfare. This also applies to Norway. The financial crisis was a reminder of how risk can be mis-assessed. Moreover, risks that operators seem to be managing well individually may prove to be a considerable strain on the financial system as a whole, which warrants contemplation of the new macroprudential surveillance framework that is now in the making. Norway, which is in a surplus and net asset position, faces some particular challenges. As investor and manager of the Government Pension Fund Global, we have seen that prices  2  BIS central bankers’ speeches  and yields can react strongly to uncertainty about the future.

Conclusion I spoke at length today about the responsibility that we have to combat crime and the ways to do so. Let me end by saying that eradicating financial crime makes good business sense. Financial crime is a cost and burden to all of society. Robust governance and greater transparency is good for business. It creates an environment of trust and a level-playing field for businesses to flourish. This is important as we seek to ensure longevity and continuity of businesses and the health of the economy as a whole. Therefore, let us be united in working for a better and brighter future for Malaysia. Greater governance and transparency will get us there. Thank you. 5/5  BIS central bankers' speeches
Financial stability can be defined as a situation in which the financial system can fulfill its main functions of submitting payments, transforming saving into financing and providing risk management with sufficient resilience to disruptions that threaten these functions. The available instruments are, under normal circumstances, supervision, regulation and financial stability reports with analyses and leading indicators that may provide early warnings of stability threats. In times of crisis, authorities may use instruments such as lending of last resort, variable-rate lending at longer maturities (credit policy, credit easing), government lending guarantees, government capital injections, special resolution regimes for insolvent financial firms, and so forth. The responsible authorities vary across countries, but the powers are typically divided between several authorities. The lender of last resort function is with the central bank, but other instruments are often in the hands of other authorities. So, financial-stability policy and monetary policy are conceptually distinct, with distinct objectives and distinct suitable instruments. The decision frequency is also different. In monetary policy, decisions are often taken 6–8 times a year. In policy for financial stability, decisions may be taken 1–2 times a year. When it comes to the instruments, the interest rate  4  BIS central bankers’ speeches  is a blunt and unsuitable instrument for affecting financial stability and it thus makes little sense to assign the objective of financial stability to monetary policy.

This comes to the end of key milestones of our journey, but the actual action is just about to begin. Although I end my address today, our journey towards a more competitive, inclusive, connected and sustainable banking system is not yet concluded. Our journey will be a continuous one as it’s imperative for banks to constantly adapt to dynamic financial needs of the real economy. Policymakers and regulators alike must also be proactively involved and adapt to the changing ecosystem. Although much has been achieved domestically, regionally there is still much to be done. As such, reaching the destination will require dedication and cooperation from all travelers to arrive safely. The key message that I would like to leave with you today is that do not get stuck with maximizing short-term returns or past successes, but we must invest more for the future. I wish you all a safe journey. Thank you. 4  BIS central bankers’ speeches
Investing in Ethnicity & Race Speech given by Mark Carney, Governor Bank of England  Investing in Ethnicity & Race Conference 2019, Bank of England 28 March 2019  1  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  Introduction It’s a pleasure for the Bank of England to host this workshop on Investing in Ethnicity & Race. To pursue its mission, Bank of England must reflect the diversity of the people it serves. That hasn’t always been the case. Historically, central banks were run by the City for the City. The Bank’s first female Court member, Frances Heaton, was appointed only in 1993, while our first Black, Asian and Minority Ethnic (BAME) member, Lord Morris, followed five years later. I’m the 120th in a very long line of male, white Governors of the Bank. Over the last five years the Bank has implemented a concerted strategy to increase diversity and foster inclusion. These initiatives have had a material impact on all aspects of diversity at the Bank. We are now reinforcing them to further improve the retention and progression of BAME colleagues in particular, and to deepen progress on inclusion more generally. The Bank values diversity for at least three reasons. First, it is the right thing to do: a public institution should reflect the public it serves. Second, diversity helps to build the trust we need to fulfil our remits. The decisions that the Bank takes impact every UK citizen, but not everyone wants to be steeped in fan charts and stress testing.

Bearing in mind there is a high degree of standardization in the risk management practices of a banking group - which is, same risk management techniques being applied uniformly throughout the group - the host country banking supervision might choose to rely entirely on the validation conducted by the home country supervision, provided that the adequacy of the model fits local conditions. If this is not the case, the host country supervision will probably have to rely on its own assessment of Internal Ratings Based (IRB) models. However, the latter raises two other sensitive issues. First, the feasibility of IRB application is complicated by the lack of reliable data on at least a full business cycle. Second, it requires training and preparation of banking supervisors with new rules, and thereby to improve their ability to examine and evaluate IRB approaches for consistency, integrity and accuracy in order to properly measure risk, otherwise, the whole capital allocation system could become faulty. On the other hand, this new environment calls for better cooperation and coordination across countries’ banking supervision in order to avoid over regulating banks and to save resources. The second challenge relates to the need of developing our own domestic rating industry for assessing borrowers. This is indispensable to gain the potential cost reduction of intermediation out of the implementation of the new system. It will make possible for some borrowers to obtain better ratings and consequently better risk weights compared to the actual 100% unrated system.
Against this background, banking business is feeling the effects of the difficulties in reactivating credit, of modest net interest income and of the impaired assets still on their balance sheets. And compounding this are growing regulatory demands which, though they should be conducive to the industry’s stability in the medium term, are raising the pressure in the short term on profitability. It is essential in this setting for managers and supervisors to revise the soundness of banks’ business model and, in particular, their capacity to generate resources in a stable manner that will ensure satisfactory levels of profitability and solvency in the medium term. That may require a correction of the European banking industry’s excess capacity apparently prevailing at present. It is important that the authorities involved should attempt to facilitate the process – which should in any event be led by banks themselves – so that the correction comes about in the most orderly fashion possible. Thank you very much. BIS central bankers’ speeches  5

As virtually all economic transactions involve some form of payment, one of the financial system’s principal components is the payment system. This is clearly expressed in a statement in the main report from the Banking Law Committee, to the effect that concern for the payment system is the primary reason for supervising and controlling financial institutions. BIS Review 23/1999  2  In Sweden it is the Riksbank that provides and is accountable for the central payment system. This RIX system handles 1,500 interbank payments a day with a total value of SEK 350 billion. While it is often the central bank that is responsible for a country’s payment system, there is nothing to prevent this function being performed by some other player. In countries where that is the case, the payment system is not a central bank concern. Nonetheless, one reason for assigning the task to the central bank is the payment system’s importance for the transmission of monetary policy. Another reason is that a central bank is in a unique position to provide the liquidity that the smooth functioning of the system constantly requires. Players are liable to need a temporary supply of liquidity in order to smooth the flow of payments with other participants. The payment system can be said to consist in turn of two components: the payment infrastructure and the financial firms, mainly banks, with access to the system. The stability of the system is dependent on the proper functioning of both these components.
In this context, the cooperation between the institutions of public administration and the academia, the cooperation between different countries and the establishment of research nets on various areas are of prime importance. They would not only enhance the efficiency in carrying out the research, but also stimulate the professional critique and opposition and reach higher standards. The research mission described above, clear and well-defined within the framework of a central bank should not be understood as an isolate mission. The studies can not take place in a closed environment. They need debate and exchange of ideas with the academy, business and other interested stakeholders. In this regard, it is my pleasure to state that the Bank of Albania has made its research subject to reviews in activities organized particularly for this purpose (inflation targeting, round tables, Friday workshops, etc). I invite you to do the same thing even during this activity. In view of debate and discussion, we have made constant efforts to attract academy and intellectuals in the discussion of our works. The Bank of Albania has introduced the “series of Friday seminars”, as an infrastructure to promote this debate. Twice a month this forum invites the interested persons within and outside the Bank of Albania to discuss their research on topics of economic nature. The activity is as much open for home and foreign researchers from the academy and business as it is open for the Bank of Albania employees.

Consequently, the availability and quality of economic data represent a key factor to the development of timely and accurate economic research, to the maximisation of benefiting from them, as well as to the minimization of wrong decision-making and the costs it carries over. Unfortunately, the availability and quality of these data cannot be labelled as satisfactory. In addition to problems of collecting and calculating the statistical basis, the data base is related to and influenced by the speed and various stages of the development of the Albanian economy and by the changes of policies promoted by the taking place of these stages. The Bank of  BIS Review 132/2007  1  Albania has continuously and will constantly call on the improvement of economic data. In this context, today’s workshop places special emphasis on the discussion of the estimations and approximation of some economic time series for some important economic indicators, as well as on their role in the development, ethics and the quality of research of empirical nature. Economic research is essential for a wide range of areas. Hence, no institution can and less can a small central bank cope by itself with all the needs for economic research. Quite contrary, the institutions need to identify the areas and issues of economic research where they possess certain comparative advantages and then, closely cooperate with each other.