samchain/econo-pairs-v1 huggingface dataset:
My second point concerns the mitigation of moral hazard. We absolutely have to avoid situations in which the payment of taxes or levies is understood as a de facto bailout policy insurance. In this respect, the allocation of the tax to a resolution fund or to the general budget does not enable public authorities to totally remove such a risk. Against this background, I think that an adequate, median way would be to extend the mandate of National Deposit Guarantee Schemes to early intervention tools and resolution powers. Moreover, we should build on the experience gained from ex ante risk-sensitive premiums, which seem to be very important for mitigating moral hazard. Most of these remarks have focused on the major and vital incentive to enhance financial regulation. Let me conclude by looking into the future. A macro-prudential policy framework could provide further room for manoeuvre. Indeed, the crisis has illustrated the necessity to have a wider spectrum when designing financial regulation. We should also not forget that financial intermediaries are primarily tools to promote a stable financing for the economy. That said, in practice, developing a well-articulated macro-prudential policy framework raises some challenges. I trust that the benefits of addressing them are worth the impressive hard work currently underway. Thank you for your attention. 4  BIS Review 57/2010

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
That is not a requirement on funds but is a material hurdle to one fund breaking from the pack to make longer-term investments that cannot be priced daily. That hurdle has been highlighted by multiple industry bodies. 19 We will need to consider how this convention could be overturned. Conclusion  These details of the financial system may seem academic when many businesses and families are struggling to cope, grappling with uncertainty and worrying about the future. But finance is needed now to help you – the muscle of the economy – to finance cash-flow deficits to preserve employment and productive capacity. While the financial system has been given every assistance to meet the needs of the wider economy and has made a good start, it needs to do even more if scarring of the economy is to be minimised. And more equity will be needed: to help some companies through the disruption; to build new economic muscle to grow to replace that which is lost, and to help others restructure once the disruption is over and avoid the burden of debt hanging over investment and employment. The pools of capital managed by our insurance companies, pension and investment funds are huge. When combined their assets amount to £ trillion20. If just 1% more of that pool was allocated to unlisted equity, demand for £ of new issuance could be created.

But the shares of assets allocated to growth capital assets like unlisted equity can be small. UK insurance companies and pension funds together allocate only around 3% of their assets to unlisted equity. The collective investment funds, in which they and others invest, allocate only 2%. [See slide 6 of accompanying deck]  There seem to be biases in the system. Even investors who should have the longest horizons seem to have a fetish for liquidity and an aversion to really illiquid growth capital assets. Getting to the bottom of this should be the focus of our efforts. Consider the £ trillion of assets in UK investment funds. The mass of these – just over 85% by assets – are open ended14, offering investors the opportunity to redeem their holding for cash each day by selling a slice of the funds’ assets. Because they offer this, these funds aren’t suited to investing in highly illiquid growth capital. The alternative closed end fund structures issue a fixed number of shares, which can be listed on a stock exchange. Because investors ‘redeem’ by selling their share to another in the secondary market (and typically at a discount), the assets held in the fund do not need to be traded. These funds are therefore more able to invest in truly illiquid growth capital. So it is no surprise that a bigger proportion of their assets is allocated to assets like unlisted equity [See slide 6 of accompanying deck]  But these funds are much smaller.
The South East Asian countries saw an increase in savings and a fall in investment in the wake of the Asian financial crisis. 2 Since then, these countries have generally continued to pursue a macroeconomic policy mix in support of an export-led growth strategy which sustains these savings-investment patterns. Meanwhile, in the oil exporting countries, export revenues have been boosted by the increase in the price of oil since 2000. You can see this in slide 4. Since domestic investments in these countries have not increased at the same pace, the result has been a rise in net savings in the oil exporting countries. The two surplus regions have one thing in common. In both cases, foreign assets are accumulated almost entirely by the official sector. In the oil exporting countries, oil revenues primarily accrue to governments. Higher oil revenues therefore translate into higher government budget surpluses. In South East Asia, where the currencies shadow the dollar, foreign assets are accumulated primarily by the central banks in the form of official foreign exchange reserve accumulation. Slide 5 shows that the global macroeconomic imbalances have led to a rapid accumulation of global official foreign exchange reserves. 3 Let me now leave you with five stylized facts about SWFs. First, as I already pointed out, SWFs are not a new phenomenon. With its Caisse des Dépots et Consignations, France set up a SWF in 1816. 4 Slide 6 shows the year of establishment of each of the 14 largest SWFs currently in operation.

However, while it may be necessary to take active policy measures in the short run to solve the crisis, it is equally important to learn from historical lessons of the past so we can be better prepared for the future. Why are we here? Why has Norges Bank taken the initiative to this workshop? To answer this we have to turn the clock back to the time of the birth of Norges Bank right after the end of the Napoleonic wars in Europe. Six laws about the Norwegian monetary system, passed by the Norwegian Parliament in 1816, paved the way for the establishment of Norges Bank. The Norwegian Constitution of 17 May 1814 specified that the Parliament should oversee the monetary system but made no explicit reference to a central bank. The Constitution was modified in November 1814 after Sweden showed some military muscle to enforce the Treaty of Kiel. The revised Constitution was in place on 4 November 1814, and the main changes reflected the fact that Norway had entered a loose union with Sweden under a common King. A change, often overlooked, was that a new paragraph had been added which explicitly stated that Norway should keep its own bank and monetary system. Hence the Norwegian Parliament preserved an independent legal authority to decide on Norway’s monetary system and institutions under the union with Sweden. Norges Bank is thus celebrating its 200-year anniversary in 2016 and has announced ambitious targets for its Bicentenary Project.
Some people place as much trust in an anonymous tweet or Facebook post as they do in an article in the Financial Times, Le Monde or El País. Some people see “fake news” as real news and “alternative facts” as a solid basis for taking decisions. So, can data and statistics help to counter “alternative facts” and “fake news”? Can they help to build a more solid base for making decisions? Well, over the years, it has become somewhat fashionable to doubt the ability of statistics to shed light on the facts, on the truth. I am sure that every statistician in the room has been told more than once that “there are three kinds of lies: lies, damn lies and statistics”. Ironically, the quote has been attributed to so many different people that its true source is unknown. So tonight, I think we should focus on how we can defend statistics and good data as a source of facts. One of the key questions is how we can engage with those who doubt us. In my view, there are two things we need to do. The first is to admit that real-world statistics have their limits, and to be transparent about how and when we use judgement. The second is to ensure that we, as institutions and as individual experts, earn people’s trust. Statistics is a discipline that is certainly aware of its own limits: it not only acknowledges uncertainty, it quantifies it!

The framework could not be implemented while the US remained neutral in the War, and the Federal Reserve Act prevented the provision of accounts to a foreign power. But within little more than a year, both obstacles had been removed. The Bank’s Court of Directors ratified the agreement in May 1917 – and the accounts were opened shortly afterwards. In the years that followed, Strong and Norman used these financial foundations to build a much broader conception of central bank co-operation, summarised in their 1921 ‘General Principles of Central Banking’. 7  Many of those principles, including the merits of operational independence for central banks, the need for appropriate supervision of financial institutions, and the importance of balancing national and international interests in the development of policy, show extraordinary foresight and remain highly relevant today. Days Present: correspondent banking services at the Bank of England today  Much has changed since those days, of course. World War 1 brought about a profound shift in the balance of global financial power, setting the US dollar on its ascent to top slot. Strong and Norman’s beloved gold standard ended ignominiously in the Great Depression. And even its post-World War 2 successor – the Bretton Woods system of fixed exchange rates – is long gone.
Given the possibility of persistent expectations of high inflation following the run-up of oil and other commodity prices early this year, the issue of central bank’s credibility in achieving price stability has become even more critical. Indeed, over the past few months, there was intense debate on the appropriate monetary stances to deal with the current inflation problem. The Bank of Thailand has decided to gradually withdraw the demand stimulus, by increasing the policy rate by a total of 50 basis points during the past two Monetary Policy Committee Meetings. The rationale is that uncontained demand, boosted in no small part by the presence of large real negative interest rates, as well as relatively small output gap during the first half of 2008, could potentially fuel even more severe and persistent inflation and force us to take a bigger dose of bitter medicine with significant loss of economic growth in the future. Second, to further enhance the effectiveness of central bank’s objective in achieving price stability, it is crucial to establish an understanding between the central bank and the government of the lagged-nature of monetary policy transmission, and the need for targeting stability to effectively anchor long-term inflation expectations. To this end, the recently passed BOT Act specifies that, at the end of each year, the Bank of Thailand’s Monetary Policy Committee, jointly with the Minister of Finance, will be required to set an annual target for monetary policy for the following year.

Moreover, the study finds that measures such as attracting foreign workers and raising the retirement age from 60 to 65 have only small impact at boosting the economy’s long-term growth and that the key to maintaining high growth rate lies in enhancing productivity growth rather than trying to squeeze out more hours from the aging population. While improvement in educational and skill attainment of the labor force and de-bottlenecking of inefficient sectors such as improvement in the logistic system and water management for irrigation are most obvious policies, financial deepening must not be neglected. It is the efficiency of resource allocation which includes funds and capital that enhances economic productivity, hence, raising the economy’s long-term growth potential. This is the focus of the rest of my talk to which I now turn. Ladies and Gentlemen, As you know, the fundamental function of financial markets and intermediaries is to channel funds from those who have a surplus of savings to those who have a deficit. If financial markets are functioning efficiently, they contribute to an optimal allocation of resources, reduce the cost of capital, and allow for risk-sharing and risk-diversification. Well-developed and efficient financial markets contribute to higher productivity growth because they are better at channeling capital from sectors in decline to those with growth opportunities, in a  BIS Review 118/2008  3  process of Schumpeterian “creative destruction” that ultimately drives economic growth.
Durmuş Yilmaz: Recent economic and financial developments in Turkey Opening speech by Mr Durmuş Yilmaz, Governor of the Central Bank of the Republic of Turkey, at the 79th Ordinary Meeting of the General Assembly, Ankara, 12 April 2011. *  *  *  Introduction 1. Esteemed Shareholders, Distinguished Guests and Members of the Press, Welcome to the 79th Ordinary Meeting of the General Assembly of the Central Bank of the Republic of Turkey. 2. I would like to start my speech with a brief evaluation of the international economic developments in the aftermath of the global economic crisis. Later on, I will summarize the key macroeconomic developments that took place in Turkey in 2010. Finally, I will share my evaluations pertaining to the recent monetary policy implementations of our Bank and their effects. Global economic developments Distinguished Guests, 3. In 2010, the growth discrepancy between advanced and emerging economies became more pronounced while the global economy continued to recover. In the post-crisis period, economic growth in emerging economies has been robust, and mainly driven by domestic demand. As a matter of fact, most of these economies have already surpassed their pre-crisis production levels. Amid the fast recovery, output gaps in these economies have tended to close, and employment conditions have significantly improved. 4. Meanwhile, advanced economies, the epicenter of the crisis, have continued to exhibit a slow and gradual recovery. Downside risks regarding the pace of recovery in these economies have yet to completely disappear, albeit having gradually waned.

In summary, I would like to conclude that so far, the Thai financial system has shown signs of resilience with promising prospects for the future. But we will continue to press on with the structural reforms to achieve sustainable growth and soundness of the banking industry. The Master Plan provides us with a road map to a more balanced and efficient financial system. While the Bank of Thailand will continue to strengthen risk-based supervision and foster observance of corporate governance for financial system stability, financial institutions will need to continuously and vigorously improve their risk management capacity for the upcoming formidable challenges in order to thrive in the new financial landscape. 4  BIS Review 43/2004
Turkey has faced a series of significant shocks in the past years. Most recently, the slowdown in the economic activity, tightening in financial conditions, sharp currency depreciation, and rising inflation have necessitated a coordinated action by all relevant authorities. Central Bank has mainly focused on inflation and FX developments during this period. We used our rich toolkit to tighten monetary policy, but at the same time provided liquidity support to FX market through reserve requirements and other tools. As part of the coordinated policy mix, other authorities have taken a series of measures to support the credit channel and economic activity. In order to stimulate the loan supply and demand, the bank regulation authority has released some of the buffers accumulated in recent years, including the maturity restrictions and loan-loss provisions. The government has announced a stimulus package to contain a possible adverse feedback loop between economic activity and loan supply. To this end, collateral conditions were eased for corporates, several incentives were provided to stimulate investments and exports, direct support for SME loans were provided through government guarantee schemes and loan restructuring processes. Most recently, tax cuts have been introduced for certain durable products to support demand and production without generating inflation. 11  Moreover, as a reflection of the enhanced fiscal-monetary policy coordination, the finance ministry announced clearly that no tax hikes are envisaged in 2017.

At our January MPC meeting, we have increased the overnight repo and late liquidity window rates, delivering a strong monetary tightening in order to contain the deterioration in the inflation outlook. The MPC statement underlined that the CBRT will continue to use all available instruments in pursuit of the price stability objective. 8  We have also stated that inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered. Moreover, the statement signaled that necessary liquidity measures will be taken in case of unfounded pricing behavior in the foreign exchange market that cannot be justified by economic fundamentals. The figure depicts the two main interest rates that matters most for the monetary transmission mechanism (Figure 12). The first one is the cost of central bank funding (shown by the red line), which recently has increased by 200 basis points to around 10.3 percent. The second one is the interbank rate (orange line), which has sharply moved up and have been consistently close to 11 percent since our latest MPC meeting. These two rates clearly indicate that monetary policy has been tightened to a great extent. Figure 12.
It is precisely this attitude of having learnt from others, and made the consequent reforms, which largely explains the positive performance of the Spanish economy in recent decades. In my opinion, the time has come to do the same (to learn and to reform) with labour market institutions which, as systematically stated by international organisations, are the major structural difference remaining between us and the more developed countries. We must acknowledge that the task is not an easy one. Apart from convincing people about their necessity, something historians and economists can help do, the skills of many others will be needed to design and implement the reforms. One thorny issue is how to set some changes in motion immediately and, at the same time, be sensitive to what may be seen as an alteration of established rights. Political acuity is crucial to resolve these problems, as indeed it is also to make the interests of the different groups of workers compatible with each other. But it should also reassure us to know that the reform toolbox is full of possibilities: calendars, compensation, incentives, etc. Lawyers also have an important job to do, since the problem with all structural reforms is that they alter the status quo and, accordingly, it is essential to find legal formulae that circumvent the obstacles that may arise in their approval and implementation.

The government issued a general guarantee for the banks’ liabilities and set up a special Bank Support Authority to cope with the banks that were in serious difficulties. The government, explicitly supported by the opposition, acted just as vigorously and promptly as the situation required. But this did entail making a decision on the basis of insufficient information about the causes and depth of the crisis - that could have burdened the government budget with at least 10 billion US dollars. Having to take such important decisions at short notice and without adequate information about the financial system is an experience we do not wish to repeat. The Riksbank is accountable to the Swedish parliament with regard to keeping a stable price level our inflation target - but also with regard to promoting financial stability and a safe and efficient payment system. After the crises there was room for some self-criticism in this respect. In practice, we had not supported our stability target with any systematic analytical work on overall stability. To address this, we started to build up knowledge and analytical capability in the field of stability. By publishing a Financial Stability Report in 1997, we were among the first central banks to issue a periodic public account of our appraisal of financial system stability. Its example has been followed to date by about thirty other countries, including Indonesia. Today, interest in financial stability is well established.