samchain/econo-pairs-v1 huggingface dataset:
19  6  More fundamentally, to think that compensation arrangements can ensure virtue is to miss the point entirely. Integrity cannot be legislated, and it certainly cannot be bought. It must come from within. See Carney (2013). BIS central bankers’ speeches  Fourth, building a sense of vocation and responsibility To build this sense of the systemic, business ultimately needs to be seen as a vocation, an activity with high ethical standards, which in turn conveys certain responsibilities. It can begin by asking the right questions. Who does finance serve? Itself? The real economy? Society? And to whom is the financier responsible? Herself? His business? Their system? The answers start from recognising that financial capitalism is not an end in itself, but a means to promote investment, innovation, growth and prosperity. Banking is fundamentally about intermediation – connecting borrowers and savers in the real economy. In the run-up to the crisis, banking became about banks not businesses; transactions not relations; counterparties not clients. New instruments originally designed to meet the credit and hedging needs of businesses quickly morphed into ways to amplify bets on financial outcomes. When bankers become detached from end-users, their only reward becomes money. Purely financial compensation ignores the non-pecuniary rewards to employment, such as the satisfaction from helping a client or colleague succeed. This reductionist view of the human condition is a poor foundation for ethical financial institutions needed to support long-term prosperity.

All societies, whether open or closed, must find ways of ensuring that people are not excluded when technological progress makes old industries unprofitable. All societies also have a responsibility for production and consumption not having too great an impact on the environment since the welfare and health of future generations will otherwise be imperilled. We must be clear that development and collaboration are good. Almost everyone, including many of the poor in the world, has experienced great improvements in the past decades. In many respects, it is exactly the increased contacts and trade between countries that has contributed to it being possible to solve the problems that I have just mentioned. Growth in the industrialised countries has led to us being able to afford to conserve our environment, which most poor countries cannot afford to do. To reverse the trend - to attempt to isolate countries from one another - is not the way forward. Globalisation makes new demands I will now make some remarks on challanges specifically related to globalisation. Like all other development, globalisation is not without problems. These were clearly expressed in the severe economic crises that we have seen in recent years - in Mexico in 1994-95, in South-East Asia in 1997-98, in Russia in 1998 and in Brazil in 1999. These crises illustrate that increased trade and financial flows makes new demands public policy. Firstly, requirements increase on the national institutional settings - on laws, authorities and practices.
Up to September, Stock Connect captured over 65% of foreign holdings of A-shares; its Northbound daily average turnover doubled year-on-year to RMB42 billion for the first nine months of this year. In just two years’ time, Bond Connect has also quickly gained traction. It now has over 1,300 investors from 31 jurisdictions, and 61 of the top 100 global asset managers. In the first ten months of the year, it contributed to around 40% of the increase in foreign holdings of onshore bonds; its daily turnover increased 2.7 times year-on-year, and now accounts for more than 60% of the overall trading turnover by foreign investors. 10. And like other things we do, we build on the good start and keep working to make the Connect schemes more attractive to international investors. We introduced in June a new arrangement that will enable investors to obtain and hedge in CNY for the Stock Connect. For Bond Connect, we have expanded the settlement cycle, introduced DvP settlement and block trade functionality, and added an additional electronic trading platform. We continuously listen to market participants, and are exploring further enhancements such as expansion of tradable product scope under Bond Connect and launch of its Southbound leg. Huge Inflow into Mainland China’s capital markets 11. Given the much greater ease of investing in the capital markets in the Mainland of China, foreign holdings of A-shares and onshore bonds increased rapidly by 73% and 93% respectively in the past 2 years.

But still, they represent only a small portion of the markets, 3% for the stock market and 2.6% for the bond market. This level of foreign participation is of course nowhere near the much more open developed markets in Europe and America. It is actually far lower than that of many other emerging market economies. 12. This clearly reflects a persistent under-allocation of Chinese assets by international investors relative to China’s economic weight. In recognition of this gap, and given the easier access to the Chinese capital markets through the Connect schemes, index providers are taking positive steps to bring the allocation more in line with the economic reality– For equities, MSCI, FTSE and S&P all started to include A-shares in the past two years. For this year alone, the rebalancing inflow into Chinese equities is estimated to exceed $ billion. But this is just a start. Currently MSCI’s inclusion factor for Chinese Ashares is only 20%, accounting for less than 4% of the MSCI Emerging Markets Index. There is a long way to go before full inclusion, leading up to over 16% of the index. By back of envelope estimation, this could mean an additional inflow of at least $ billion to A-shares. The FTSE Emerging Markets is a similar story. At an inclusion factor of 25%, China will only account for less than 6% by the end of the current inclusion process next March.
Unlike earlier episodes of high oil prices, which were driven largely by temporary supply constraints, the recent increase in the demand for oil has been reflected in higher prices for future delivery as well as higher spot prices. Similar rises are apparent in the market for gas. The signpost marked higher energy prices points us towards ways of using less energy, to alternative energy sources and to new sources of oil production such as the Canadian tar sands. BIS Review 9/2006  1  The first two signposts point us in the right direction. But the path has not been easy to follow. We have seen movements - in both directions - in inflation, consumer spending and output growth. Interest rates too have moved both up and down in order to maintain overall stability of the economy by keeping consumer price inflation close to the 2% target. The reasons for those changes have been explained in the minutes of the Monetary Policy Committee meetings and in our Inflation Report. Tonight, I want to look a little further ahead, to the challenges for monetary policy posed by a third signpost - the recent fall in long-term interest rates. The development of an integrated world capital market means that these now depend on savings and investment decisions elsewhere in the world as well as here at home. Investors seem to be willing to lend to governments at much lower interest rates than for many a year.

Mervyn King: Globalisation and relative price changes Speech by Mr Mervyn King, Governor of the Bank of England, at a dinner for Kent Business Contacts in conjunction with the Kent Messenger Group/Kent Business, Kent, 16 January 2006. *  *  *  Two weeks ago Trafalgar Square was packed with revellers celebrating the New Year. A century ago it was crowded with hop-growers and pickers. On May 16th 1908 - “Hop Saturday” - around 30,000 people working in the hop trade travelled to London to demonstrate against unfair foreign competition and to demand the introduction of a tariff on imported hops. It was the largest demonstration in Trafalgar Square for many years. Special trains were laid on to London Bridge from where the demonstrators marched to Trafalgar Square, accompanied by bands playing and banners flying. According to the Times, “One of the most conspicuous banners bore the words: ‘And shall hops picked by Chinamen make England's hop trade die, here's 50,000 Kentish men will know the reason why’". Another, appropriately above the plinth of Nelson’s column, read “England expects that every hop shall pay a duty”. A resolution was proposed demanding the imposition of an import duty of 40 shillings per cwt on all foreign hops. Having carried the resolution, the assembled gathering sang "Rule Britannia", after which the massed bands played the National Anthem and a verse of "Auld Lang Syne". Colourful and moving though the occasion was, the decline of the hop industry was inexorable and inevitable.
Second, sound system of financial institutions, with adequate capital fund, good risk management, corporate governance, and systematic and effective system of financial and market information disclosure that promotes market discipline is important for economic  BIS Review 135/2008  5  stability. Finally, the private sector should increase competitiveness and the ability to adapt, with emphasis on human resource development and key infrastructure. Ladies and Gentlemen, With increased globalisation and financial integration, emerging market economies has become more synchronized with advanced countries. As the turmoil is unfolding, we must work even more closely together to ensure smooth adjustment and safeguard economic and financial stability. Thank you for your attention. 6  BIS Review 135/2008

However, the reactivation of credit activity remains a challenging goal, which would require encouragement of the final demand and generation of business plans valid for bank financing, reduction of real and perceived risk in the economy, review of development strategies and commercial banks’ lending policies, as well as reduction of cost and non-cost elements in lending. All these factors are envisaged to gradually improve throughout the year; however, they will remain far from the pre-crisis levels. Bank of Albania’s monetary policy will continue to be prudent, chiefly oriented towards achievement of inflation target. The recent upward inflation trend might have been motivated by temporary-action and limited-intensity supply factors. The Bank of Albania has envisaged  BIS Review 28/2010  1  that the exceeding of 4 percent inflation rate will be for a short period of time and will not be followed by steady inflationary pressures. Our projections show that consumer price inflation will fall gradually towards the 3 percent targeted rate during 2010. However, we remain committed to taking all appropriate steps to ensure this performance and meet our legal mandate for price stability in the economy. 2  BIS Review 28/2010
Deepening economic integration and interdependency Within Asia, economic integration is deepening, and we are becoming more and more interdependent. Intra-Asian trade as a share of the region’s total trade has grown from 34% in 1980 to more than 50% today. Asia is being woven together by trade and investment flows, MNCs spreading their production chains and a growing web of bilateral and multilateral FTAs (Free Trade Agreements) and regional processes. China plays a critical role in quickening the pace of regional integration. China is serving as a production platform for foreign firms. Many manufacture there. Others export intermediate goods to their affiliates in China for assembly and then shipping the finished products to key export markets in the US and Europe. What we are seeing is production sharing and the intensification of an Asian production network. However, both China and other Asian countries also know that due to China’s sheer size and strategic weight, its re-emergence exerts a displacement effect. To use an image, it is like a huge elephant wading into a pond. This will displace the water and reduce the space of others using the pond. What do we do? We cannot live without water. The answer is to enlarge the pond so that there is more space for everybody. China is conscious of its size. It emphasises peaceful development so that while it displaces, it does not threaten. Hence, China is negotiating an FTA with ASEAN so that its growth will translate into more opportunities for ASEAN.

Asia’s share of global wealth Let us start by taking a look at Asia’s share of global wealth to see how far it has come, and where it is projected to go. Back in 1980, Asia accounted for 19% of global GDP in PPP (purchasing power parity) terms. Today, Asia’s share stands at 35%. In 2020, this is expected to rise to 45%. Compare this with America and the EU. Each accounted for roughly 21% of global GDP in 1980 and 2005. Both are expected to see their share drop to 19% by 2020. Let us look at another measure. Asia’s share of global exports in 1980 was 14%. It doubled to 27% in 2006. By 2020, this is expected to rise to 35%. The picture is the same for Asia’s share of global outward FDI (Foreign Direct Investment) stock. In 1980 it was 5.9%. By last year, it doubled to 11.4%. It is expected to grow to 20% in 2020. What this suggests is that Asia is no longer just a recipient of investments from US and Europe. Increasingly, Asia will become a major source of FDI for the rest of the world. In terms of private wealth, a 2006 Merrill-Lynch study noted that Asia-Pacific contains 27% of the global population of High Net Worth Individuals (HNWI) and 23% of global HNWI wealth. Merrill-Lynch expects private wealth in Asia-Pacific to exceed $ by 2010, growing at an annual growth rate of 6.7%, outpacing the global rate.
By supporting highly accommodative financial and credit conditions, our current monetary policy stance is underpinning the recovery of the euro area economy. The gradual reabsorption of economic slack is working its way through to underlying inflation. Continued monetary policy support is necessary to ensure a sustained convergence of inflation towards levels below, but close to, 2% over the medium term. This assessment was the motive for the Governing Council’s decision of December last year to extend the asset purchases until the end of 2017 – or beyond, if necessary. It is conditional on the continuing support from these and past measures that we expect to see a return of inflation to levels closer to 2% over the medium term. In providing the necessary degree of monetary accommodation going forward, the ECB will continue to adhere to its monetary policy strategy, that is look through transitory changes in inflation and remain focused on underlying inflation dynamics. The ups and downs of monthly data are not relevant if they are temporary and have no implications for the medium term outlook for price stability. I will focus my remarks today on the relationship between economic activity and inflation. Eurosystem staff analysis has identified a large degree of economic slack as an important factor behind subdued inflation dynamics in the wake of the sovereign debt crisis. Despite the ensuing economic recovery, other – mainly cyclical – forces have been exerting disinflationary pressures.

In the first quarter of this year, the financial sector grew by 7.7% quarter-on-quarter on a seasonally-adjusted annualized basis. Financial services employment has also held up reasonably well. Employment stock continued to increase in Q4 2008 and fell by 1,900 or 1.1% in Q1 2009. A recent poll 3 showed that the banking and financial services sector reported the biggest jump in hiring intentions, 32% this quarter, up from 19% in Q2. Strengthening resilience – new measures Going forward, we will remain vigilant and continue to focus on the three key pillars of resilience of our financial system. The main focus would be on shaping and adopting new international regulatory standards, strengthening the corporate governance of financial institutions, enhancing the Standing Facility and strengthening the Singapore Government Securities auction system, and bolstering investors’ confidence in our financial system. Reforming the regulatory framework has become a major issue internationally, and the emerging consensus is towards more stringent regulation. Under the first pillar of sound financial institutions, MAS is contributing to and helping to shape new regulatory standards being discussed at the Financial Stability Board, the Basel Committee on Banking Supervision and other international standard-setting bodies. For example, discussions on liquidity risk management standards and the capital framework for banks are at an advanced stage. Over the course of the next one to two years, we will be implementing changes to our regulatory framework to adopt these new standards.
A strong krone and low external price impulses will continue to have a dampening impact on inflation, and inflation will remain below target for some time. Further ahead, higher capacity utilisation and profitability in the business sector point to a pickup in wage growth. At the same time, the fall in import prices will slow. To conclude: Norway has weathered the financial crisis better than most countries, and the economic recovery in Norway is now on a firm footing. Currently, interest rates are low, with the key policy rate at 2 per cent. In the years ahead, there are prospects for fairly strong growth in the Norwegian economy, driven by solid income growth, rising investment and high population growth. On balance, the consideration of stabilising inflation, as well as developments in output and employment, imply a gradual increase in the key policy rate towards a more normal level. Thank you for your attention. BIS central bankers’ speeches  11

Since the June forecast the spectrum of risks has changed somewhat; the chances of inflation being higher than in the main scenario are now judged to be greater than the probability of a lower rate. The increased upside risk has to do with fears that inflation will react more quickly to the rising economic activity and that labour market shortages may be more serious and lead to a stronger development of wages. The assessment of an increase in upside risks is accompanied by less likelihood of a slowdown in the global economy. But there is still the risk of international activity being dampened appreciably in connection with a major correction of the high stock market prices and the financial imbalances that have been a feature of the American economy in recent years. Such a scenario would affect price tendencies in Sweden. The risk of financial bubbles, with serious real economic effects if they burst, is something that the Riksbank, along with other central banks, has to heed. Monetary policy In the late summer, at the monetary policy meeting on 12 August, the Executive Board had already noted that stronger economic growth in Sweden and rising resource utilisation pointed to growing upward pressure on prices. That in turn indicated that monetary policy might have to be given a less expansionary direction in the future. Two members of the Board even advocated a small repo rate increase in August.
But if this model is right, higher rates would not help either, as rates substantially above equilibrium would mean that demand for loans from banks would decline sharply and the riskiness of future projects would increase, and even currently viable projects might turn into unviable, nonperforming ones. But let’s go back. What is a real problem, and take it as a criticism of our own club, is that we are unable to explain this story, this narrative. I have long pondered why this is the case. Recently, I caught a glimpse of an answer in the work of the young German economist Benjamin Braun. Like him, I feel that people have simply stopped understanding us. After 2008 we started to tell a different “monetary story” – a different narrative about money and central banks – to the one people were used to. Public confidence in the monetary system was and is grounded in the previous narrative, which in turn is based on three building blocks. One, the central bank is the sole creator of money and thus has perfect control over the quantity of money; money is therefore exogenous, to use the language of economics. Two, commercial banks do not create money but merely convert existing deposits passively into loans. And three, the lower the growth in the price level, the better. This narrative, which some would term imprecisely “monetarist”, did a very good job of reconciling public preferences and central bank decisions when bankers were fighting inflation and subsequently working successfully to stabilise it, i.e.

18 See for example Gentzkow, M and Shapiro, J M (2010) What drives Media Slant? Evidence from U.S. Daily Newspapers, Econometrica, Vol 78, No. 1, pp 35-71 5  All speeches are available online at www.bankofengland.co.uk/speeches  5  Chart 1: Main News Sources Split By Age  Source: Reuters Institute for the Study of Journalism  The digitization of knowledge and the fact that it is usually freely available has been hugely democratizing 19  and empowering of people to get information to shape their views . Individuals can go to the doctor better informed about their illnesses and alternative treatments. The wisdom of crowds can generate restaurant reviews, ratings of products and services, and alternative perspectives on a wide range of issues. And trust can be built based on studying the “likes” and “dislikes” or reading the reviews of thousands of individuals. But there has been a downside – people can be overwhelmed with information that is difficult to verify, algorithms create echo chambers of the like-minded who are never challenged; fake news distorts reality; “post-truth” fosters cynicism; anonymity bestows irresponsible power onto individuals who can abuse it; a world in which more clicks means more revenue rewards the most shrill voices and promotes extreme views. Experts, who sift through all the information and make informed judgments, are just one of many voices in this cacophony. And the inaccessible language they use often renders them the least heard. Experts define themselves through “boundary work” that separates them from non-experts.