samchain/econo-pairs-v1 huggingface dataset:
Recurring financial crises have made it clear that there will always be problems that need to be tackled and that the authorities can therefore benefit from a structured approach to financial stability. What can the Riksbank do if it considers that financial stability is threatened? There is no direct steering instrument or lever to pull in the same way as for price stability. Moreover, the Riksbank cannot intervene in the banks’ operations at a microeconomic level. The work is instead largely concerned with preventing crises. This is achieved partly by regulations that establish the framework within which financial companies can operate, and partly by regular monitoring of the system. There must also be an emergency system so the central government can manage any crises that may nevertheless arise. With regard to the first part of the stability work, the responsibility for regulations in the financial markets lies mainly with the Ministry of Finance and Finansinspektionen (the Swedish Financial Supervisory Authority). However, the Riksbank can affect financial market legislation by responding to consultation documents, participating in commissions of inquiry and in the international work on  BIS Review 8/2006  5  developing regulations. On the basis of my own earlier experiences of the management of bank crises in different countries, I consider it particularly important to complete the Swedish legislatory work on how banks in distress should be managed.

This is explained in the Riksbank’s clarification of monetary policy, published in 1999. It is important that we communicate clearly when we intend to deviate from the ordinary time horizon. This type of flexible application of monetary policy assumes that there is considerable confidence in the policy and that it does not decline. If this were to happen, we would be forced to act more forcefully without having the same opportunity to take into account, for instance, growth and employment. It does not appear likely that such a situation would arise in the present climate. Inflation expectations are securely anchored around our target and everyone knows we take our objective of price stability very seriously. 4  BIS Review 8/2006  There has recently been a debate on the objective of monetary policy. Some have said that we should have several objectives, while others have considered that we already strive to achieve too many. This indicates that we have not quite succeeded in explaining how we work, despite the fact that we are considered one of the most open central banks in the world. Let me therefore now be extra clear – there is one objective for monetary policy and that is to maintain price stability. However, this objective does not rule out taking into account the real stability of the economy. This possibility is allowed by the legislation on the Riksbank’s activities and is something we always bear in mind.
And last, but by no means least, this luncheon and our presence here today reflect the progress of globalization. I am glad to say it is a progress that we have made together. Ladies and Gentlemen, It is also undeniable that Thailand has shown a strong commitment to global economic integration. Thailand’s economy and openness have grown together hand-in-hand. But openness brings forth not only benefits; it also invites challenges. As such, we must embrace globalization with our eyes open for potential risks and pitfalls. Although globalization has brought considerable gains over the last decades, the path traveled has not always been smooth. In fact, it has been strewn with risks, some predictable and some not. Nearly ten years ago, Thailand was in the midst of a financial crisis that had been caused by a number of factors. The most telling one was the premature liberalization of the financial sector. That round of financial liberalization encouraged significant capital inflows and massive over-investment, creating financial vulnerabilities which eventually led to abrupt reversal of flows in the period that followed. I am sure many of you can recall the event vividly. And further back in time, nearly twenty years ago, Thailand was embroiled in a global oil crisis that thrust the world economy into a period of recession and high inflation. During both episodes, the prognosis for globalization seemed grim. Nevertheless, Thailand emerged from these crises with a renewed commitment to global economic integration and internal reform. The situation today is nowhere near as grim.

But the economic lessons of the past remain relevant. Openness comes with challenges. And as the world grows increasingly interconnected, these challenges will not only be more numerous, but they will also be more varied. Today, the Thai economy again faces challenges from the external front. The main challenge comes in the form of global financial imbalances; another challenge is the threat of high and variable oil prices. By global financial imbalances, I refer to the pattern of savings and investment allocation across the world. At the present, the US economy saves very little relative to its investment needs. Asian and oilproducing economies save more than their domestic investment opportunities. The European Union saves just enough. As a result, the US economy has been borrowing a large sum from Asia and oil producers. The magnitude of capital flows from the rest of the world to the US economy is not sustainable; it is a matter of time before the flows eventually reverse. And, in the process, the US  2  BIS Review 64/2007  dollar will depreciate against various currencies, including the Thai baht. The issue here is not only when the correction will take place, but how fast and how disruptive. Thailand, like many emerging market economies with small and shallow financial markets, is particularly vulnerable to fast-moving international capital. Such rapid movements of capital flows, if vastly out of line with the underlying economic fundamentals, can have negative impacts on the export or import sectors depending on the direction of exchange rate movement.
In this regard, a comprehensive review of the industry-wide related issues involving payment instruments and systems needs to be undertaken to make Malaysia more competitive, with a view to promoting the more efficient payment systems and addressing the commercial hurdles. In order to further improve the growth and promote the e-payments, the payments industry may wish to consider establishing a Payment System Association to deal with the industry-wide issues involving electronic payments. A Payment System Association would be able to address the lack of common technology standards between service providers to promote interoperability, and the lack of a collective forum to identify, understand and manage the spectrum of stakeholders' interests and expectations. I should add that this idea is not new, as payment associations are already in existence in several other countries. Ladies and Gentlemen The future landscape of the payment industry is one that will continuously evolve with market innovations, resulting in enhanced services that offer improvement in efficiency and cost savings compared to traditional payment methods. Bank Negara Malaysia will continue to play the role of a facilitator to spearhead the development and improvement of the payments system infrastructure and to promote a conducive enabling environment for such developments to take place. In this respect, Bank Negara Malaysia has taken several initiatives to promote greater use of electronic payments by the public sector and in bringing about a mindset change amongst the users.

And the prediction is that Iceland will grow even faster during the next two years, or in the range of 3½–4% per annum, causing the slack in the economy to disappear and the unemployment rate to fall to around 4%. 2  BIS central bankers’ speeches  So how did we get here? In answering this question, we need to remember that subsequent developments were not only a function of the negative shocks hitting the economy in 2008 but also a function of the policy responses. In addition to crisis management vis-à-vis the failing banks, which I have already mentioned, the economic programme that the Icelandic authorities developed in co-operation with the IMF played a key role. It provided financing amounting to 5.1 billion US dollars, which helped to build FX reserves. The programme had three key goals: stabilisation of the exchange rate, fiscal sustainability, and reconstruction of the financial sector. Comprehensive capital controls were a key element in the programme. Fig. 3  BIS central bankers’ speeches  3  The policy responses mitigated the recession but could not stop it from becoming the deepest in Iceland’s post-war history and a severe one in international comparison as can be seen from Figure 2. Iceland was not the hardest hit, however, as can be seen from this slide. Furthermore, developments were more or less in line with previous Central Bank of Iceland predictions (see Figure 3). The result was that Iceland fell significantly down the League of Nations.
Accordingly, the SNB’s monetary policy strategy since the 1970s has been based around a freely floating Swiss franc exchange rate that is not actively managed by the National Bank. This is not to say, however, that the SNB does not take the exchange rate into account in its monetary policy deliberations – on the contrary: because Switzerland is so closely integrated  3  Cf. Kaiser, B. and M. Siegenthaler (2015), The skill-biased effect of exchange rate fluctuations, KOF Working Papers, KOF Swiss Economic Institute, ETH Zurich, 385. 4  Cf. Holmes, T. J. and J. A. Schmitz Jr. (2010), Competition and Productivity: A Review of Evidence, Federal Reserve Bank of Minneapolis Research department staff report, 439. The authors conclude that “nearly all the studies found that increases in competition lead to increases in industry productivity”. 5  Cf., for example, Ekholm, K., A. Moxnes and K. Ulltveit-Moe (2012), Manufacturing restructuring and the role of real exchange rate shocks, Journal of International Economics, 86 (1), pp. 101–117 or Fung, L. (2008), Large Real Exchange Rate Movements, Firm Dynamics, and Productivity Growth, Canadian Journal of Economics, 41 (2), pp. 391–424. BIS central bankers’ speeches  3  into the global economy, both appreciation and depreciation phases have far-reaching consequences for economic and price developments in our country. As a result, exchange rate movements have a major influence on our inflation forecasts. Thus, they also play an important role in monetary policymaking. The SNB thus takes the macroeconomic repercussions of exchange rate movements into consideration.

When there is a fixed exchange rate target, one might even have to expect an uncontrolled expansion of the balance sheet. This is attached to a number of imponderables. 6 In addition to major financial risks, it should be noted that, as the balance sheet grows, it will become increasingly difficult to reduce excess liquidity during a subsequent normalisation of monetary policy, and to fulfil the monetary policy mandate – of ensuring price stability – sustainably. Second, it is important to bear the following in mind: pegging the franc partially or fully to another currency would mean that the SNB would have to adopt the monetary policy of the  6  4  Cf. also Danthine, J.-P. (2015): Swiss monetary policy facts ... and fiction, speech at the Swiss Finance Institute Evening Seminar, Geneva, 19 May 2015. BIS central bankers’ speeches  currency area concerned. However, it could no longer be guaranteed that this monetary policy would always be optimally tailored to the needs of the Swiss economy. Thus, the benefits of an active exchange rate policy need to be properly weighed against the costs for the economy as a whole. But there is no one-size-fits-all method of determining the need to intervene in the foreign exchange market, or the best way to do so. The points to consider will differ depending on the situation. Current SNB monetary policy In that regard, I would like to briefly describe the SNB’s current thinking.
Since the unprecedented sell-offs in May, there have been some recent corrections to the initial overreactions. Nevertheless, capital movements and asset prices continue to be volatile and pose headwinds to growth and financial stability. The summer period provided a brief respite and provided investors with more time to be selective, not treating all EMEs as one single asset class. Economic fundamentals became a primary consideration for assessing in which market to remain invested. We trust that Thailand will continue to receive the attention of foreign investors because of our sound fundamentals and attractive prospects. These, notwithstanding the current soft patches as the economy consolidates and work on its long term competitiveness agenda. Role of monetary and financial policies in safeguarding stability Long before the Subprime and the Eurozone crises, Thailand had our own economic crisis of 1997. We experienced a setback that took us more than half a decade to recover. Since then we learnt the virtue of moderation and prudence. Firms had to deleverage, banks recapitalized, regulatory standards, governance reforms and bank lending practices have improved markedly. The government’s fiscal framework was also strengthened following the fiscalization of the costs of financial sector restructuring. Years of hard work and reform efforts paid off and laid the foundation for a more diversified and competitive economy. The availability of policy space both in the fiscal, monetary and financial policies, helped ensure a much needed domestic source of growth when global trade collapsed in 2008. Timely government stimulus helped shore up domestic demand.

As a  1  We have been tracking these developments using data our economists have developed to help us better understand the job prospects facing recent college graduates. These data are available on our website and are updated regularly. See The Labor Market for Recent College Graduates. BIS central bankers’ speeches  5  result, for the first time during this recovery, both unemployment and underemployment among recent college graduates has generally been falling. This means that, not only has it become easier to find a job upon graduation, but more college graduates are taking jobs that better utilize their degrees. In addition, starting salaries for recent college graduates have been increasing for the past couple of years, reflecting the growing demand for their skills in a tighter job market. To conclude, while there are economic challenges facing both the nation and the region, I am optimistic that we will continue to make progress on both fronts over the next few years. Achieving our dual mandate of maximum sustainable employment and price stability will help those who will graduate soon to achieve their own aspirations. Thank you for your kind attention. I would be happy to take some questions. 6  BIS central bankers’ speeches
The three institutions also get together at least monthly, in what we refer to as the 'tripartite Standing Committee', to exchange information and discuss current threats to financial stability. As you might expect, we have met more frequently in recent weeks. If the events of 11 September have had an important effect on monetary policy, they had huge potential implication for financial stability as well. In the immediate aftermath, a key priority was to make sure that markets had adequate liquidity to continue and settle their business. In addition to its extensive operations in the US market, the US Federal Reserve entered into swap arrangements with the ECB, the Bank of England and other central banks to ensure a continued supply of dollar liquidity in other key markets. And the main payment systems extended their opening hours in the US, enabling the huge daily volume of dollar payments to be made. I must say that I was particularly impressed by the speed with which most of the big firms affected in New York were able to switch their operations to their contingency sites. Some of those sites were in New Jersey, but others put increased volumes through their London offices. There are of course a number of lessons which firms based in the UK and elsewhere will want to take from the disaster. But, overall, I salute the US firms and the US authorities for their actions, achieved at a time which for many involved was one of acute personal anxiety.

Some business costs, such as insurance, will rise, but that should be at least partially offset by the sharp fall in oil prices. RPIX inflation rose briefly above target in August, but fell back to 2.3% in September. We are just starting to put our next formal inflation forecast together, and you will be able to see the results of that exercise in the November Inflation Report. At this point, I know you would wish a crisp conclusion and some indication of where I think rates should move in the future. Some of you may even think you have detected clues in what I have said as to where I think rates should go. If you have, though, that would be an over-interpretation. There are, I think, clear downside risks. The world economy may slow further if adverse confidence effects persist. Spending which is currently delayed may be cancelled. And the labour market may begin turning more decisively in the UK. But for the moment these risks need to be weighed against the continued strength of domestic demand. Of course, if we are to meet our inflation target, a strong domestic economy will be needed to offset the weakening influence of overseas markets. We have cut interest rates by 150 basis points since the start of the year in part to achieve this, and the full effect of these reductions have still to come through.
In these uncertain times and with all the increased interconnectedness of the world economy, volatility and short-term fickleness of marketplace are unavoidable. The wise thing to do is to understand the nature of this global interconnectedness, enhance risk management at both the macro and micro levels to mitigate negative impact that it may bring upon, all the while maximizing opportunities that it can immensely provide. It is conceivable that, in this highly integrated world, information and confidence are very important in influencing actions. Just as how “shifts in beliefs” can go a long way to create extreme market reactions and volatility, on a positive side I trust that a successful “anchoring of confidence” in our “shared beliefs” of ASEAN’s strength and future will encourage actions and commitments that will bring sustained prosperity for all. Thank you. And happy birthday to The Nation. 4  BIS central bankers’ speeches

Mugur Isărescu: International Financial Reporting Standards – international experience and implementation by the banking sector in Romania in 2012 Opening speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the IFRS conference “International experience and implementation by the Romanian banking sector in 2012”, Bucharest, 20 June 2011. *  *  *  Ladies and Gentlemen, Distinguished audience, It is an honour to have the opportunity to open the proceedings of the Conference titled “International Financial Reporting Standards: International Experience and Implementation by the Banking Sector in Romania in 2012”. This is a topical and, at the same time, a hotly-debated issue that we are going to discuss together with the Institute of Chartered Accountants in England and Wales (ICAEW). Economic and financial developments tending towards internationalisation of banking operations in the context of globalisation of financial markets have highlighted the importance of financial information provided by companies, especially in terms of assessing and presenting the results and risks attached to their activity. Moreover, in the aftermath of the past years’ financial crisis, stronger pressures for harmonising accounting rules worldwide as a basis for the published financial information have emerged. Under the circumstances, the National Bank of Romania, in its capacity as the regulatory and supervisory authority of the Romanian banking system has steadily sought to harmonise its rules and practices with the best practices in the field so as to increase transparency and ensure comparability of information across the entire banking sector.
The Federal Reserve Act provides the Federal Reserve with the authority to pay interest on reserves (IOR). In Regulation D, the Board of Governors implemented this authority in the form of two rates: interest on required reserves (IORR), and interest on excess reserves (IOER). Since late 2008, these two rates have been set to the same value. 15  5  reserves. 16 These models generally find that as reserve balances decline, the overnight interest rate goes up, but not uniformly. At high levels of reserves, the responsiveness of rates to changes in reserve levels is fairly low, and the demand curve is said to be “flat.” As excess reserve levels decline, the responsiveness of rates increases. At low levels of excess reserves, the overnight rate responds sharply to small adjustments in the level of reserves: the demand curve is “steep.” It seems highly likely that we are on the “flat” part of the curve, the part where rates move little in response to shifts in reserves. But this does not quite answer the question on whether the decline in reserves might be putting perhaps some upward pressure on rates. Even in the “flat” part, the slope of the demand curve, while small, might be nonzero. This could be true if, for example, the balance sheet costs of the marginal borrower in overnight money markets were upward sloping with respect to that bank’s balance sheet size.

Caleb M Fundanga: Increasing access to financial services in Zambia Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the official opening of National Savings and Credit Bank, Lukulu Branch, Lusaka, 27 May 2009. *  *  *  The Guest of Honour; the Honourable Minister of Finance and National Planning; Dr. Situmbeko Musokotwane, MP The Honourable Minister for Western Province; The Deputy Permanent Secretary for Western Province; The Honourable Members of Parliament for Lukulu East and West; The Acting Ngambela Imbua Imwaka representing the Barotse Royal Establishment; The District Commissioners for Lukulu and Kaoma; The Board and Management of National Savings and Credit Bank; Distinguished invited guests; Ladies and gentlemen. 1. On behalf of the Bank of Zambia Governor, I would like to thank the Board of Directors and Management of National Savings and Credit Bank for inviting us to the occasion of the opening of another rural branch in Zambia, this time in Lukulu. 2. National Savings and Credit Bank (also commonly referred to as NATSAVE) was established on 1 April 1972 by the National Savings and Credit Bank Act of 1972 and it commenced business operations in March 1973. The amendments to the Banking and Financial Services Act of 2000 extended the supervisory authority of the Bank of Zambia to NATSAVE which was until then, supervised by the Ministry of Finance and National Planning (MoFNP). 3.