samchain/econo-pairs-v1 huggingface dataset:
11  The Way Forward  The mutually reinforcing relationship between the regulatory framework and market good practice should help the FMSB, and other market standard-setters, maintain their ambition and momentum even once memories of post-crisis misconduct fade. It could sharpen collective incentives to address, more conclusively, outstanding ambiguities that act as obstacles to real markets. And it should help mitigate emerging vulnerabilities. The Bank of England encourages the FMSB to consider where additional guidance and worked examples could buttress its existing standards, to guard against the risk that certain principles mean different things to different parties. The City’s special responsibility, given its pre-eminent position in global markets, is why it has brought so many ideas and such energy to advance reforms to address the misconduct risk that has plagued global markets. 10  See page 16, Financial Reporting Council (FRC), “Corporate Culture and the Role of Boards: Report of observations”, July 2016. In light of its responsibilities for conduct and market integrity, the FCA is consulting on an approach under which it would formalise that in supervising to, and enforcing, SMR rules for unregulated markets and activities, it would consider whether firms and individuals are meeting “proper standards of market conduct” with reference to “recognised” industry codes.

19 20 21  For example, Nagel, S and Malmendier, U (2011) Stiglitz (1997) has described a similar process for the price Phillips curve based on asymmetric price adjustment. See Borio and Filardo (2007). 9  All speeches are available online at www.bankofengland.co.uk/speeches  9  Mark Carney has pointed out how global influences will shift the Phillips curve both lower (due to the positive supply shock from increased product and labour market integration) and flatter (due to integration of global value chains, increased competition and contestability of product and labour markets). The downward shifts, which will persist as long as integration continues, are disinflationary, pointing to running the domestic economy at tighter spare capacity to meet the inflation target. 22  For the policymaker a flattening of the Phillips curve poses a more difficult challenge than under-measurement of labour utilisation or a lowering of the natural rate or of inflation or real pay expectations (Chart 9). The latter pose the challenge of judging the timing of policy action right; excess (deficient) demand for labour will drive pay up (down) as before as unemployment falls (rises). But the point – i.e. the level of unemployment and the rate of growth of pay – at which that will happen is lower. Getting the timing of monetary policy right is a formidable challenge for the monetary policy maker. But it is a familiar one.
To further enhance the competitiveness of our banks and step up our supervisory efforts, the HKMA commissioned a large-scale consultancy study of the local banking sector. The study was completed in 1998 and the recommendations contained in it are being carefully considered by the HKMA. (E) Hong Kong continues its participation in international financial activities in accordance with the provisions in the Basic Law  BIS Review 39/1999  4  19. The Basic Law provides that the HKSAR may, using the name of “Hong Kong, China”, maintain and develop financial ties with different countries and regions. This includes entering into and implementing multilateral and bilateral financial agreements, setting up overseas official and quasiofficial financial representative offices, and handling external financial relations. 20. Following the handover, Hong Kong has become even more active in the international financial scene. In addition to further developing co-operation with regional central banks, the HKMA has strengthened its ties with multilateral and international financial institutions. In September 1997 the Annual Meetings of the International Monetary Fund/World Bank were staged with great success. As the first major international event in Hong Kong after the handover, the Meetings became an important landmark in Hong Kong’s financial history. In 1996 both HKMA and the PBOC were admitted to the Bank for International Settlements (BIS) in their own right.

Yet, even when the Hong Kong dollar and the financial markets were under great pressure, and the economic and monetary conditions were extremely difficult, all the measures to address the financial crisis, including the market operation undertaken last August for the purpose of preserving order in our financial markets, were entirely formulated by the government of the HKSAR on its own. During this period of financial turmoil, the Central Government has strictly adhered to the provisions of the Basic Law. The Central Government has shown confidence in the ability of the HKSAR government and has not interfered in Hong Kong’s monetary affairs. Furthermore, the success of the HKSAR government in addressing the financial turmoil has fully demonstrated the effectiveness of “Hong Kong people ruling Hong Kong”. The confidence of the international financial community and the Central Government in the ability of Hong Kong to maintain monetary stability and to continue the development of Hong Kong as an international financial centre have also been enhanced. The Monetary relationship between Hong Kong and the Mainland 8. An issue related to monetary autonomy is the handling of the monetary relationship between Hong Kong and the Mainland under the “one country, two systems” principle, especially given that the economic relationship between the two places has become increasingly close. A precise and clear approach to the monetary relationship between both places is one of the key factors in maintaining Hong Kong’s status as a financial centre.
Other Issues for Supervision I would be remiss, however, if I left you with the impression that all supervisors focus on is capital, liquidity and earnings. It is not all about the balance sheet and the income statement. Financial institutions face other risks that threaten their ability to provide financial services or even their viability, and supervisors are acutely aware of these risks. I will briefly discuss three— cybersecurity, fintech, and business conduct risk. Beginning with cybersecurity, the Federal banking agencies have recently released an advanced notice of proposed rule-making around a set of potential enhanced cybersecurity riskmanagement and resilience standards that would apply to large and interconnected entities under their supervision.14 Supervisors and regulators continue to work with other agencies in the official sector to defend against cyber-attacks and to minimize the disruption from a successful attack. This type of disruption could impede the critical services from the financial sector and is a first-order concern. On fintech, which I define simply as the intersection between financial services and technology, I view this as potentially disruptive with the ability to transform how financial services are provided. This could have a wide range of possible impacts on supervised firms depending on the nature of the innovation, how new technologies or service models are introduced and adopted by supervised firms, and the resulting impact on business models, competition and market structure.

As one of four non-G7 financial centres represented on the Forum, we play a useful role in providing insights and perspectives from the region on financial market developments. We participated in the FSF’s work on Offshore Financial Centres. We also hosted a meeting of the FSF earlier this year during which the three FSF reports were adopted. Singapore also participates actively in IMF initiatives to enhance transparency as a means to minimising risks to the global financial system. In particular, we are in general compliance with SDDS (Special Data Dissemination Standards), including the new requirements for more detailed breakdown of data on official foreign reserves of member countries. We also release regularly the IMF’s assessment of our Singapore economy and policies; the latest report was based on the annual consultation that ended in June of this year. MAS annual accounts Assets & liabilities On MAS’ annual accounts, total assets increased by $ billion to $ billion as at 31 March 2000, of which $ billion was in the form of foreign assets and $ billion in our holdings of Singapore Government Securities (SGS). The increase in SGS holdings reflects a conscious effort to build up our portfolio of SGS to engage in more repo transactions for our money market operations, thereby broadening the range of money market instruments that we use. On the liabilities side, there was a reduction in deposits of banks by about $ billion, reflecting the repayment of deposits previously placed by POSB with MAS prior to its merger with DBS.
The other is how difficult most of us in western Europe find it to understand how rapidly things are moving and how much has already occurred in these countries. The image of a west European with shopping bags full of aid to the poor neighbours in the east still remains, while we are incapable of seeing how much we can pick up from the new member countries. How poor are the candidate countries? I should like to begin with a critical examination of the picture we normally give of the applicant countries. Two common illustrations of the economic side of the EU enlargement eastwards are graphs showing the development of production since the fall of Communism and a table of the income differences between east and west. If we look at the statistics summed up in the European Commission's reports, GDP per capita adjusted for purchasing power (PPP), the gap certainly looks huge. The riches of the 10 central and east European candidate countries, Slovenia, with 72 per cent of the EU average, and the Czech Republic, with 60 per cent of the EU average, are around as poor as countries like Greece, Portugal and Spain were before they joined the EU. However, the poorest countries in the applicant group, Bulgaria and Rumania, have only approximately 25 per cent of the EU average. The graphs for production levels since 1990 look equally gloomy, only at the end of the 1990s do they reach the same level as at the fall of the Berlin Wall.

The report discusses three models for improving the efficiency of the ECB Councils' decision making in an enlargement of the number of participants in the monetary union: rotation, representation and delegation. That is to say, a rotating voting right between a number of central bank heads, similar to the Federal Open Markets Committee in the USA, the formation of constituencies of central bank heads with joint representatives on the ECB Council, rather like at the Bundesbank following the German reunification, and finally delegation to a small group of experts, roughly like the Monetary Policy Committee in the UK. The CEPR report then gives an account of the advantages and disadvantages of the three models. The discussion will probably intensify when the Nice Treaty comes into force. The roles played by Sweden and the Riksbank Sweden as a country plays an important role in the whole of this enlargement process, because of the support from both politicians and the general public for our neighbouring countries in the east. The Riksbank tries to contribute where we can. We share our experiences regarding monetary policy and financial stability, particularly with the three countries that, like Sweden, have inflation targets; Poland, the Czech Republic and Hungary, as well as, of course, Estonia, Latvia and Lithuania. The latter are particularly important, bearing in mind Swedish banks' large ownership in the Baltic banking system. Economists from the Baltic and central European central banks visit the Riksbank regularly and we visit them.
Banks built their own staffs or outsourced the activity to another financial institution, a consulting firm or a boutique. In the early 1990s, some banks took an even more drastic step and sold the loans to firms that specialized in managing distressed debt. The key, however, was to get these exposures in the hands of those who could work with borrowers or the markets to maximize the value from problem portfolios. The workout process must not be allowed to interfere with the continued provision of credit to the economy, however. The key policy concern in the early 1990s in the United States shifted quickly from worries about bad banks to a credit crunch as banks aggressively tackled their loan problems. And that is why it is so important to segregate the “workout” portfolio from the remaining loan portfolio. When a dedicated staff is working out bad loans, the bank’s officers can devote their attention to the continued sound operation of the bank—the current agenda of serving the bank’s customers well and the forward agenda of developing and executing a sound business strategy. This is a key reason every country needs a strong legal framework for credit relationships and a robust bankruptcy process. Successful workouts cannot occur if the roles and responsibilities of creditor and debtor are not clear, and especially if there are no established processes that can be used as a fallback and discipline on debtors if all other means of recovery are exhausted.

Thank you for your attention. 4/4  BIS central bankers' speeches
If uncertainty about inflation creates an option value to waiting, then it will reduce investment. And there is growing  8  BIS Review 68/2002  empirical evidence that inflation is a key explanatory variable for cross-country differences in 5 investment to output ratios. (ii)  Redistribution of wealth between debtors and creditors. Unexpected changes in the price level - the standard of value used to define contracts - produce arbitrary redistributions of wealth. As Keynes wrote in his powerful advocacy of price stability in A Tract on Monetary Reform, “We leave saving to the private investor. We leave the responsibility for setting production to the business man. These arrangements have great advantages. But they cannot work properly if the money, which they assume as a stable measuring-rod, is undependable. Unemployment, the precarious life of the worker, the disappointment of expectation, the sudden loss of savings, the profiteer - all proceed, in large measure, from the instability of the standard of value”. Or, as Lenin remarked, the best way to destroy capitalism is to debauch the currency. It is arguable as to whether it is high inflation or serious deflation which results in the greater economic damage. In Europe in the 1920s hyperinflation undermined economic and social arrangements, as it has done more recently in Latin America. But deflation has proved just as unpopular as inflation. In 274 A.D. the Roman Emperor Aurelian tried to restore the integrity of the coinage which had been adulterated by workmen in the Mint.

So far the path of consumer spending is not inconsistent with this benign outcome. The second possibility is that the level of debt taken out by households - the debt-to-income ratio is now at an all-time high - makes households sensitive to any adverse future shock to their employment or income prospects. In that event the risk is of a sharper adjustment of consumption to the shock than might otherwise have occurred. Monetary policy would respond, but a large negative demand shock might result in an undershoot of the inflation target for some considerable time. The third possibility I touched on earlier. Households may adjust more quickly to the implications of a low inflation world for the prices of goods and services than for nominal interest rates or the future growth of nominal incomes. A mistaken underestimate of real interest rates or overestimate of nominal income growth may raise borrowing, spending and asset prices temporarily. Eventually households learn and consumption adjusts, again possibly sharply. The policy dilemma is that by allowing consumption and demand to grow rapidly there is a risk that there will be a sharp correction of demand later. The essence of the argument is well put by Borio and Lowe who, in a BIS Working Paper, argued that, “lowering rates or providing ample liquidity when problems materialise, but not raising them as imbalances build up, can be rather insidious in the longer run.
2  BIS central bankers’ speeches  Babe Fisher and John Paul Jones Preparing to speak to you today, I asked: How might I, a central banker whose musings are given to the arcana of economic and monetary policy, possibly improve upon the wisdom of the ultimate sources? Not easily. So I dug deep into my memory bank and called upon a source more erudite than the lessons of the Bible or the Quran, Confucius or Shakespeare, and even more insightful than Diana Sorensen – Mike’s and my mother, Magnhild Andersen Fisher, whom everybody called “Babe”. Babe Fisher never enjoyed the benefit of the type of education you have received. Yet she was a wise woman. She was a kind of female Nordic Yogi Berra who dispensed exquisite pearls of wisdom to her boys. One is especially germane for this ceremony. Our mother would say: “Never let your brains go to your head”. The pun is horrific but the message is profound: To achieve success, you will need to keep your superb education and your considerable talent in perspective. Brains and the gift of talent are necessary, but they are insufficient for success in life. Time and again, in business and universities and government we see instances in which women and men of towering intellect get far at first but ultimately snatch defeat from the jaws of victory. They do so because they have forgotten to develop their emotional quotient with the same devotion they applied to developing their intelligence quotient.

Take the naval reference and the gender bias out, and you have the ultimate guide for all of you who depart Bryant today aspiring to lead: You must be more than smart and have more than a mighty intellect; you must develop the whole woman, the whole man to be a leader in whatever field you chose. A smattering of Latin Which brings me to the last requirement for most all commencement orations – a smattering of Latin. Commencement speakers at great schools seem to delight in showing off their command of an ancient tongue. Many a commencement speaker might have concluded this afternoon’s remarks with labor omnia vincit – a stern reminder that labor conquers all things. It is true, indeed, that you can’t rest on your laurels or your good family name or a Bryant education or just plain good luck. You have to work hard and sweat to succeed. And in doing so, you have to remember mens sana in corpore sano – a sound mind resides best in a sound body. But that is way too ponderous. This is, after all, a festive day!
Richard W Fisher: Policies needed to restore American prosperity Concluding remarks by Mr Richard W Fisher, President and Chief Executive Officer of the Federal Reserve Bank of Dallas, before the Dallas and Fort Worth chapters of Financial Executives International, Dallas, Texas, 11 February 2014. *  *  *  The views expressed by the author do not necessarily reflect official positions of the Federal Reserve System. Related slides can be found on the Federal Reserve Bank of Dallas’ website: Slides (PDF). For far too long, the greatest obstacle to the nation’s economic prosperity has resided here:  An editorial in today’s Financial Times encapsulated in 11 words an argument I have been making repeatedly: “Fiscal policy is still not an ally of U.S. growth.”1 I’ll conclude by making the argument once more. Earlier I showed you the gaping hole in the heart of our prosperity: If you remove the jobcreating machine of Texas from the U.S. economy, the nation has experienced job destruction that has occurred over the past 12 years in the middle-income quartiles. Let me show you that chart again:  1  See “Yellen must not be bullied by Congress,” Financial Times, p. 8, Feb. 11, 2014. BIS central bankers’ speeches  1  I never refer to “classes”; I do not believe status in a democracy should be defined by the hidebound concept of “classes.” But no matter: The most vital organ of our nation’s economy – the middle-income worker – is being eviscerated.

This is the pathology I worry most about. So I ask: Can my colleagues and I at the Fed cure this with monetary policy? Obviously, businesses cannot create jobs without the means for investing in job-creating expansion, so, yes, monetary policy is necessary to propel job creation. But as I have shown you tonight, the store of bank reserves awaiting discharge into the economy through our banking system is vast, yet it lies fallow. Take a look at this chart of total reserves of depository institutions: They have ballooned from a precrisis level of $ billion to $ trillion. 2  BIS central bankers’ speeches  There is plenty of money available for businesses to work with. Consider this: In fourth quarter 2007 the nation’s gross domestic product (GDP) was $ trillion; at year-end 2013 it was estimated to be $ trillion. Had we continued on the path we were on before the crisis, real GDP would currently be roughly $ trillion in size. That’s a third larger than it was in 2007. Yet the amount of money lying fallow in the banking system is 60 times greater now than it was at year-end 2007. One is hard pressed to argue that there is insufficient money available for businesses to put people back to work. Now, bear in mind that we at the Fed only control the monetary base (cash plus bank reserves), not the velocity with which money is used.