samchain/econo-pairs-v1 huggingface dataset:
This reversal in the growth of M3 was to a very great extent the result of a large-scale reallocation of investment flows stemming from the fall in short-term interest rates since autumn 1995, which has been of unprecedented magnitude and rapidity. The M3-M2 aggregate, which includes assets paying money market rates of interest, posted a twelve-month fall of 10.1 % at the end of October 1996. In response to the fall in short-term interest rates and also a heavier tax burden on money market mutual funds, economic agents reallocated their portfolios towards assets covered by the investment aggregates, and particularly the Pl aggregate covering contractual savings products, including housing saving plans. Year-on-year growth in P1 accelerated from 12.3% in December l995 to 18.5% in October 1996. The rate of interest paid on housing savings plans has remained unchanged at 5.25% since February 1994, whereas comparable market rates have fallen sharply. This gave a strong boost to the reallocation of investment flows. Year-on-year growth in housing savings plans accelerated significantly, rising from 14.1% at the end of 1995 to almost 26% in October 1996. In addition, twelve-month growth in the P2 aggregate covering investment in bonds and life insurance products remained buoyant. It stood at 12.3% in June 1996, with new investment accounting for 9%. At the same time, formation of liquidity was dynamic. The narrow money aggregates M1 and M2, which cover transaction balances and liquid savings, showed annual growth trends in October 1996 of around 5.8% and 7.5%, respectively.

In the last three years, potential growth has averaged a little more than 2% a year for the years 1994, 1995 and 1996. We can do better. We believe that our economy's potential non-inflationary growth is around 2.5% in the medium term, and this can be exceeded given the capacity for growth to catch up. The requirements for investment are financing terms, self-financing, competitiveness, and medium-term growth. We believe these requirements exist today. If I had to sum up briefly the message of the Monetary Policy Council, I would say: “The investment plans exist. The time has come today to implement them. Let us invest. It is the surest way for us to contribute to non-inflationary growth that creates jobs and thus to help in the fight against unemployment.”  * *  *  French monetary policy is in line with the European strategy of the President of the Republic and the Government, and therefore with the creation of an economic and monetary union on 1 January 1996. The advance towards the single currency was decisively confirmed at the European Summit in Dublin, where an agreement was reached on the legal status of the euro, on the new European Monetary System and on the stability and growth pact intended to guarantee fiscal discipline in the Monetary Union.
After the event we will have a better idea of which way we got things wrong. It is a near certainty that four or five years from now the monetary policy that is set over the next year will, with the benefit of hindsight, look very likely to have been too loose or too tight. Many then will talk about the big mistake the MPC made in late 2010 and the first part of 2011. If we tighten too quickly it will be a story of “myopic MPC learnt nothing from events of 2008”; if growth and inflation look stronger than I now think is the most likely outcome it will be “MPC completely failed to see what was obvious to nearly everyone – that inflation was out of control”. But the only sensible thing to do is to look at all the evidence we have today, and balance the risks. References Admati, A, DeMarzo, P., Hellwig M, and Pfleiderer P. (2010) “Fallacies, Irrelevant Facts, and Myths in Capital Regulation: Why Bank Equity is Not Expensive”. Stanford University Working Paper No. 86. Akerlof, George A. (1970), “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism”. Quarterly Journal of Economics, 84(3), pp. 488–500, 1970. Bank of England (2010), Financial Stability Review, June 2010, page 58–60. Bank for International Settlement (2010), “An Assessment of the Long-term Economic Impact of Stronger Capital and Liquidity Requirements”.

Minouche brings immense international, managerial and economic experience from a career that has spanned academia, the public service and the IMF. She will help lead the Bank’s efforts to reshape core markets and the Bank’s relationship to them. Second, through its intellectual leadership and international relationships, the Bank can help complete the G20’s ambitious programme of financial reform including building resilient financial institutions, ending too big to fail, making derivative markets safer and transforming shadow banking to market based finance. Sir Jon Cunliffe, one of the original architects of the Financial Stability Board, is leading this effort. The job is too big for one person and requires a well-resourced and focused international strategy that draws on all areas of the Bank. That is why we are pooling our prudential policy teams in a single directorate and bringing together our international teams to increase insight and impact. By acting as One Bank we can increase our international impact and ensure that the UK’s financial sector can be both a global good and a national asset. Building on the success of the past 25 years On the face of it the recent enlargement in the Bank’s responsibilities represents a return to the broader role of the Bank of the past. If there are some similarities in roles, how we will discharge them will be fundamentally different.
Moreover with the introduction of a floor for risk weighted assets, small banks could compete with large ones on more similar terms. This is because small banks generally use standardised methods and not internal models. It is therefore a good idea to have a floor for how low the banks’ internally-calculated capital requirements may be in relation to the capital requirements for small and medium-sized banks. This is a reasonable balance to ensure that competitiveness is not disrupted. So the future regulation of the banks’ capital levels will probably contain a leverage ratio requirement, a risk-weighted capital requirement and a floor for risk-weighted assets. Some of you may wonder why so many different types of capital requirement are necessary and the answer is quite simple: because each individual requirement has its own strength that offsets the weaknesses in the others. Let me give some examples. As I mentioned earlier, a floor for risk weighted assets is needed to prevent the risk weights declining too much. In addition, a leverage ratio requirement is needed to limit the banks’ capacity to take on too much debt. If only a leverage ratio requirement were present, this could give the banks an incentive to move to higher  7 [12]  risk assets. To counteract this, we need the current risk-based framework that compensates with a higher capital requirement for higher risk assets. How much capital do the major Swedish banks have?

4  See the BIS publication “Consultative Document -Reducing variation in credit risk-weighted assets – constraints on the use of internal model approaches”, http://www.bis.org/bcbs/publ/d362.pdf  9 [12]  Time to start a review of Sweden's special national requirements Some of the special Swedish requirements have arisen over the years following the financial crisis, as Finansinspektionen and other Swedish authorities have assessed that Swedish banks need more capital than the current minimum requirement supplies. These special Swedish requirements are thus not the result of international agreements. It is therefore reasonable that we should review our current special national requirements when Basel III will be introduced in full in Sweden, especially in the perspective that Basel III will imply higher minimum requirements of the major Swedish banks than before. Although no decision has yet been made on when Basel III shall be fully implemented in Sweden, my assessment is that we will have plenty of time to review our special national requirements and assess what level they should be at when Basel III is introduced in Sweden. One conclusion of this analysis may be that today’s CET 1 capital requirement of 18 per cent of risk-weighted assets for the major Swedish banks in total needs to be changed in future. Under these circumstances it is too early to make any precise analysis of how, for instance, Swedish GDP will develop or how borrowers’ interest rates will be affected by the coming changes in the regulations.
Located within the NBRM Library, the Center provides access to over 400 publications of the World Bank, electronic access to the World Bank databases, as well as a specifically authorized direct access to the electronic World Bank library, with a possibility to browse over 6,000 copies of professional literature. What makes this Center additionally useful for the public is that, within the cooperation with NBRM, it simultaneously provides the external users with an access also to the National Bank publications, in the form of annual reports and working papers, and to the professional literature that the NBRM Library has at its disposal. The access to all publications, as well as to the World Bank statistical database is open for all interested users in the Republic of Macedonia, because of which this Center can bear the epithet of a rich trove of knowledge, which is waiting to be used. Dear Ladies and Gentlemen, We live in an era of extraordinary dynamic changes. An era, where the already learned things outdate in no time, or become insufficient, while the crisis once again showed that the enigmas are far more numerous than the axiomatic truths. That is the reason that the investments in learning should be ongoing. As a Central Bank, we make constant efforts for knowledge improvement and elevation of the scientific and research capacity, not only within the Bank, but wider, as well.

I do not know which of the two sides, benefited more from the cooperation between the World Bank and the Republic of Macedonia. But I strongly believe that the cooperation with the World Bank has played (and still plays) very important financial and advisory role in strengthening the institutional capacities of our country and in boosting the economic development. The amount of capital invested by this institution in the Republic of Macedonia is known, in the years when it was most important to us, when our access to other sources of funds was incredibly difficult and much more expensive. Reforms that were and still are implemented in our country with the assistance of the World Bank are well known: the judiciary, health care, tax system, pension system, decentralization, increasing competitiveness, etc. The positive role of the World Bank in the issues that are extremely important for us is clear, and we call it by the common name – structural reforms, a set of issues without whose advancement we would not have approached the doors of the Euro-Atlantic integrated systems. I think that for that contribution, i.e. the result of our partnership with the World Bank we should use every opportunity to say thank you. Working together on the structural reforms, many of our institutions, members of the administration, and even politicians became acquainted with the best practices in the world in many important areas of the economy, and in general the organization of work, important for improving the quality of life.
Deviations from the exchange rate’s more fundamental level may also be occasioned by matters to do with credibility. In addition, the exchange rate may be affected by transitory shifts in the currency market’s demand and supply. Such shifts may arise from portfolio adjustments. In certain periods these mechanisms may tend to accentuate exchange rate movements even though economic fundamentals point in a different direction. One example of this is the large movements in the US dollar. Against this background I shall now look at some factors that will probably be important for the development of the euro. I shall take the fundamentals first and then point out some factors that could be of transitory significance for the euro. Fundamental factors Provided economic policies in the euro area focus credibly on price stability accompanied by a corresponding low-inflation policy in the rest of the world - it is probable that the euro’s nominal exchange rates with other countries will display a high degree of stability. However, cyclical disparities between currency blocs and some uncertainty about monetary policy signalling are factors that could generate certain fluctuations. BIS Review 68/1998  -3-  EMU is constructed so that monetary policy will be formulated collectively by the ECB’s Executive Council and the national central banks in the light of the overall picture of inflation in the euro area, while fiscal policies are formulated at the national level.

Today this is the case in just a few countries, of which Sweden is one. Monetary policy’s interaction with fiscal policy will be important, at both national and EMU level, for the perceived credibility and consistency of economic policy in general. A constructive dialogue is therefore needed between the ECB and the governments of the euro countries. The arrangements are not yet clear but an intense discussion of this and other matters is now under way in Europe. The Treaty provides a number of opportunities for contacts between the two spheres. Functional economic structures must also be in place so that the single monetary policy can establish low inflation without eliciting unnecessary economic tensions. A matter of particular importance in this context is the workings of the labour market. A labour market that functions properly reduces the risk of regional unemployment and thereby of political problems that could ultimately pose a threat to the monetary union. Temporary factors  BIS Review 68/1998  -5-  The discussion of the euro’s development has included the point that the introduction of the single currency will trigger widespread portfolio rearrangements, mainly by private investors but also in public reserves. The euro will alter the composition of exchange risks in investors’ portfolios and this could result in flows to restore the degree of diversification. Investors who achieved diversification previously with holdings in German marks and Italian lire, for example, will have to adjust their portfolios when both these currencies are replaced by euro.
Second, a well integrated financial system helps to make the euro area economy more efficient through the reduction of financing costs and an improved allocation of financial resources. This is likely to be conducive to higher and more sustainable non-inflationary growth. A study sponsored by the European Commission concluded in 2002 that further integration in the European Union might generate additional gains of 1% in the overall level of real GDP over a decade or so. Third, European financial integration is a priority that has been reiterated by the European Council on several occasions. The ECB’s support for European financial integration is therefore in accordance with Article 105 of the Treaty, which states that “the ESCB [– European System of Central Banks –] shall support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the Community”. Finally, there is the interconnection between financial integration and financial stability. As deeper financial integration may, to some extent, change the interplay of vulnerabilities, the potential impact of these on financial stability – which is of natural interest to central banks – has to be taken into account. The ECB uses all available channels in its efforts to foster European financial integration. We try to raise awareness of the need for integration and the means of achieving it. We also advise on the shaping of the legal framework. Furthermore, the ECB can act as a catalyst for collective initiatives from the private sector.

This Seminar is one of the platforms for regulators and financial institutions to come together to share views and experiences in regulatory issues particularly pertaining to accounting standards, financial framework and transparency in the Islamic banking operations. I also hope the participants would take the opportunity to acquire as much knowledge as possible during these two days from the invaluable insights presented by the distinguished speakers. On that note, I wish you a successful Seminar. Thank you. BIS Review 35/2002  3
When the Riksbank is portrayed it is often the case, consciously or unconsciously, that the present inflation figures are linked to the current monetary policy conducted. If the most recent inflation figures are above the target level, the conclusion is often drawn that the Riksbank should raise the repo rate. If inflation is below the target level, as now, it is often said that the repo rate should be cut. The problem is that today’s monetary policy has very little effect on today’s inflation rate. The way monetary policy functions in practice, the impulse from monetary policy decisions spreads through the economy very slowly. By affecting the cost of loans, incentives to save, exchange rate trends and thereby exports and imports, etc. the interest rate has an effect on total demand in the economy and gradually also on inflation, but this process takes time. It is possible that the reaction time has been reduced somewhat as households have reduced the average period for fixing their loans, from around one and a half years to around one year. However, the accepted estimate is that an interest rate decision makes its greatest impact one to two years after the decision was taken. The inflation figures registered today are thus largely due to interest rate decisions made one to two years ago, and the decisions we make now will not have their real effect until one or two years from now. The somewhat thankless situation for the Riksbank is therefore that we are always reviewed with hindsight.

In Italy, for instance, output fell by more than 5% in 2009, while unemployment peaked at almost 13% in 2014. These figures are alarming, but they tell us little about the people who lost their jobs, their homes and their future. Taking all this suffering into account, the crisis turned into a tragedy. As for its causes, I admit that the story I’ve just told is far too simple. Of course, it was not the failure of a single investment bank that caused all this mayhem. The full story is much longer and much more complex. However, no one can deny that banks played a crucial role. It became obvious that they can pose a huge risk to financial stability and the economy. But at the same it’s an inescapable truth that we need banks. Or, to be more precise, we need the services they provide. Why we need banks Who does an investor turn to when she needs money to start or expand a business, when she needs to hedge risks or wants to acquire another company? Who does a saver turn to when he wants to deposit money? Who does a family turn to when it needs a loan to buy a home? Here in Europe, all of them would most likely turn to a bank. Banks provide a vital service to the economy. Without them, the economy would not work. All this leads us to a crucial question: how can we ensure that banks reliably serve the economy?
This could lead to rising government bond yields and increased uncertainty regarding the future, and thereby to lower GDP growth. It could make it harder to rectify the deficits in public finances in the countries concerned. At the same time, the market turbulence would probably decline if one succeeded in presenting credible programmes for managing public finances. However, it is uncertain whether the decisions made during the summer will suffice to calm the markets. ECB buys government securities A further problem is that self-generating processes can arise on the financial markets. If the price of a particular type of asset, such as a certain country’s government bonds, falls, this can lead to this type of asset being sold, as those holding these assets may want to avoid  BIS central bankers’ speeches  5  continued losses. This pushes the price down even further. It may be difficult to break such a process. To avoid this situation arising, the ECB began to buy Spanish and Italian government securities on the secondary market in August, which has pushed down interest rates for these countries. In addition, the European Council has agreed to increase the flexibility of the European Financial Stability Facility (EFSF). This facility will be able to grant loans to governments and – in exceptional cases – to buy government bonds on the secondary market. Formal approval by the respective countries is required for these changes to be able to come into force, and this process should move quickly.

It is of paramount importance that the school put in place measures to avert rampant vandalism. Ladies and Gentlemen, let me also mention here that the challenges I have just outlined are not only common to Mumbwa High School, but are experienced in many Government schools. We also realize that the Government has limited resources and cannot attend to the problems of every school in the country at one time. It is for this reason that the Bank of Zambia has continued to donate used computers to several schools around the country. In 2009, the Bank donated a total of 60 computers to various schools including Mumbwa High School, David Kaunda Technical High School, Information and Communications Technology Ladders, and St Francis of Assisi in Lusaka. We are hoping that through these donations the beneficiary schools will sustain and improve the academic performance while bridging the digital divide. Further, a number of schools including our own Mumbwa High School do not have internet access to enable teachers carry out their research activities. In order to improve performance in class, we need to ensure that we enhance the capacity of our teachers. We must recognise that computers alone are not magic and neither should they replace chalk and blackboards, but they should and can be used as a tool to aid learning. Providing more computers at schools will do little without providing the tools that enhance teaching and research like internet.