samchain/econo-pairs-v1 huggingface dataset:
As a result, the effect of tightening the monetary policy on the aggregate demand has been significantly contained due to lack of response from long-term interest rates. In the world of global financial markets nobody seems to be surprised by the fact that during the session of the Federal Open Market Committee (FOMC 19 ) of the American Federal Reserve, the eyes of the entire financial market are fixed on its Chairman. Why is that? Decisions made by the FOMC in Washington are equally as important for investors in New York as those in London, Tokyo, Rio de Janeiro, Shanghai or even Warsaw. Not only do the FOMC decisions influence US economy, but also - via the financial markets channel - the entire global economy. An unexpected increase in interest rates in the USA may bring about a sudden outflow of capital from the emerging markets, and thus weaken the currencies of those countries and increase their bond yields. Some economists 20 make the point that an important aspect of the growing internationalisation of financial markets is increased discipline, which is extorted by investors on governments and central banks in individual countries. According to this hypothesis, the financial markets, through their continuous valuation of securities, duly reward good and punish bad economic policies. However, the empirical results do not provide hard evidence to support the thesis on fiscal policy discipline.

According to an analysis conducted by Eurosif, through a quantitative survey and qualitative interviews of asset managers and owners operating in Europe, one of the most frequently mentioned challenges is a lack of data necessary to comply with European Union regulations. Some respondents commented that they currently use SFDR-related data merely for compliance reasons and do not consider them to be decision-useful information. However, the responses gathered during the qualitative interviews indicate that this view could change as the coverage and reliability of these data increase.6  6  See Eurosif (2023). Climate-related Data: The Investors’ Perspective. Report, May. 6  We have a new challenge to add to definitions and transparency, the previous ones I mentioned, namely, the quality of the information. Finally, we cannot forget that we are in a global world, and even more so insofar as sustainable finance and investments are concerned. Global definitions, disclosure requirements and information would contribute to the mobilisation of financial resources for projects that contribute to the transition to a net-zero economy. To the extent that definitions, disclosure requirements and information are local, the possibilities of facilitating a global shift towards projects that contribute to the transition to a net-zero economy will be smaller. Conclusion I have focused my address on green bonds and sustainability-linked bonds but I am aware that the family of sustainable instruments is growing. Indeed, I have not mentioned sustainable bonds, transition bonds, social bonds, blue bonds or bonds related to biodiversity. Each of them has its own challenges.
Luis M Linde: Recent economic developments in the euro area and in Spain, and important financial system projects Address by Mr Luis M Linde, Governor of the Bank of Spain, at the Annual Conference 2013 of the Asociación de Mercados Financieros, Madrid, 25 November 2013. *  *  *  Let me first thank the Asociación de Mercados Financieros, and its Chairman, my good friend Enrique Prados, for kindly inviting me to accompany you today in this Annual Conference. The Association – which draws together a large number of financial market professionals – performs important work in channeling initiatives aimed at contributing to the better working of those markets. Their active collaboration with regulators in devising rules, their participation in public consultations and their educational role are all to be welcomed. My address today will be brief, so as not to outstay my welcome and encroach on your first course. It shall focus on three projects of particular importance for our financial system in the area of market infrastructures. But allow me first to comment on recent economic developments in the euro area and in Spain, developments that point, as we know, to a turn for the better. To the euro area first. After six consecutive quarters of contraction, second-quarter GDP in the area this year posted positive growth of 0.3% in quarter-on-quarter terms; in the third quarter it has held at a positive rate, albeit one of only 0.1%.

With the extension of this service to equity operations, a market segment that had hitherto remained on the fringes and set us apart from more developed markets has been covered. Through its intercession in each operation, acting as a buyer against the seller and a seller against the buyer, the CCP considerably facilitates the management of counterparty risk. This centralising function, which has a major bearing on post-trade operating arrangements, will be subject to most stringent regulatory requirements, in line with European legislation. Other objectives it pursues are to provide the Spanish securities market with the tools to compete on an equal footing and with the same resources as other European markets. It is scheduled to come on stream in October 2015. On the European front I should like to mention the “TARGET2-Securities” project. As you know, this project takes its name from the European payments system that came into being with the Monetary Union, and its aim is to use the TARGET 2 system for the settlement of securities operations using the accounts held by banks at central banks. Despite the ongoing development of post-trade infrastructure in Europe, an excessive level of fragmentation remains. TARGET2-Securities will considerably reduce this fragmentation, allowing cross-border securities settlement to be equated to domestic settlement in terms of costs, efficiency and safety. Moreover, it will reduce institutions’ collateral and liquidity requirements. TARGET2-Securities is the most ambitious European securities market integration project undertaken to date. It will commence operating in June 2015, when the first migration wave takes place.
Lars Heikensten: Behind the granite walls up at Brunkebergstorg - monetary policy in practice Speech by Mr Lars Heikensten, First Deputy Governor of the Sveriges Riksbank, to the Riksdag's Social Democrats, Stockholm, 21 March 2001. *  *  *  The theme for today’s seminar is monetary policy in practice. I find it extra stimulating because it is a subject I don’t often get a chance of talking about. While thinking about how to arrange what I want to say, I felt that, besides talking concretely about how we at the Riksbank go about assessing inflation, it would be a good idea to spend some time on some matters of principle. In that way I hope to lay a good foundation for the ensuing discussion. First I shall say a little about monetary policy’s purpose and our target. Then I shall describe how we make our assessment and how the Executive Board works. Before winding up, I shall also consider some issues connected with communication and transparency. ‘Hate inflation’ As we all know, monetary policy’s purpose is to safeguard low inflation. That has been the case in any event since the beginning of the 1990s. It became explicit, of course, when the Riksbank adopted an inflation target in February 1993. Since 1999, moreover, the Riksbank Act states that the objective of the Riksbank’s operations shall be to "maintain price stability". So why is this our objective?

Starting from appraisals of global economic  The inflation puzzle International developments ■  ■  ■  etc  BIS Review 24/2001  Development of GDP Interest rates and exchange rates Oil prices  Swedish economy ■  The krona  ■ ■  ■  etc  Development of GDP Productivity Utilisation of resources Wages  Other ■  Inflation expectations  Inflation ■  Taxes and subsidies  3  developments, various international prices, for oil for example, the exchange rate, interest rates and what is happening in the domestic economy, we estimate a picture of economic activity and resource utilisation in Sweden. Normally it is resource utilisation that is crucial for inflation. To this we add an assessment of inflation expectations as well as estimates of factors with effects that may be more or less transitory, such as changes in interest rates and taxes. The combined result is a forecast of inflation. The large model is made up of a number of relationships, The equations for calculating exports are one example. Swedish exports are estimated as a function of, for example, global economic developments and the path of the krona’s exchange rate or some other measure of relative prices. But as some important relationships are not particularly stable, we have to make judgements on the basis of other experiences. Sometimes, moreover, there are grounds for supplementing a model-based calculation with more specific information. There may be indications that investment activity, for example, will be higher than historical relationships indicate.
For example, liquidity providers may be reluctant to take on a large inventory position because they will find themselves in an unfavourable bargaining position if this information is known to others. They may ask for an additional premium in order to take on such a risk, which can raise transaction costs for investors.9 Similarly, very large market participants, such as pension funds, may find it more difficult to execute large transactions without being front-run by predatory traders. In very transparent markets such as those for equities, this has become a substantial concern. With these issues in mind, it is imperative that the new regulatory environment carefully considers all possible implications of increased market transparency. In particular, it is important that the new set of rules is calibrated in a way that avoids excessive market liquidity distortions, in particular in those market segments whose functionality is still partially impaired as a consequence of the market disruptions that we have witnessed over recent years. With this in mind, the ECB explicitly welcomes private sector initiatives such as the AFME framework for post trade transparency, which I believe is a constructive proposal because it aims to fine-tune the reporting requirements across different liquidity categories, something that is certainly a sensible approach given the economic trade-off I have just outlined. Concluding remarks So, I will now conclude my keynote address, and I look forward to participating in what I am sure will be an interesting panel discussion. 7  De Frutos, M-A.

For the ECB, efficient, resilient and liquid financial markets are a key prerequisite for the smooth implementation and transmission of monetary policy. The ECB therefore strives to ensure that regulatory reform initiatives do not impose restrictions which may hinder the efficient functioning of markets or impair their liquidity. Formally, the Treaty on the Functioning of the European Union assigns to the ECB an advisory role as regards proposed EU acts2, i.e. the ECB is consulted on proposed EU directives (general framework legislation). Furthermore, delegated and implementing acts  1  Press release: ECB announces rescheduling of loan-level data reporting requirements for asset-backed securities, 27 November 2012. 2  See Articles 127(4) and 282(5) of the Treaty. 2  BIS central bankers’ speeches  qualify as proposed EU acts, and therefore the scope of the ECB’s consultation also extends to such acts as well as to draft technical standards.3 In addition, we continually exchange views with market participants, for example via our ECB market contact groups.4 The regulatory debate has become a standard agenda item in those meetings. A number of regulatory measures target financial markets. Let me focus in the rest of my speech on a very important regulatory initiative and on a concrete example: the review of the MiFID II and, specifically, the proposed price transparency requirements.
For businesses, the shrinking and aging labor force will have an impact especially on labor-intensive sectors such as textile, apparel, leather, and wood and furniture, which account for around 7 percent of the value-added in the manufacturing sector. Businesses, particularly those that are labor-intensive, will need to rethink business models and find ways to increase productivity, be it through process automation or focusing on R&D to create higher value-added products and services. Retaining and retraining employees will also have to become an integral part of businesses. Impacts on consumer spending The second implication of demographic shift will be on the market, as consumers’ spending will change, both in terms of value and composition. Thailand’s aged dependency ratio—the ratio between population aged 65 and over to the working age population—is projected to increase from less than 20 percent today to more than 50 percent twenty years from now. This demographic shift 2  would impact the country’s productivity and present a challenge to the country’s fiscal sustainability, as nearly half of Thai people are not enrolled in retirement plans. With the majority of the people having high household debt, low savings, and little financial security, aging population will add more burden to households in the form of increased spending for elderly care. Moreover, people tend to consume less as they grow older. A study by TDRI found that Thais in their 50s will decrease their consumption by more than 20 percent when they are in their 60s.

A platform creates value by connecting users—who could be consumers or suppliers—reduce search cost and make economic transactions that would have not happened otherwise possible. Businesses left and right are being disrupted by the platform movement: hotels by Airbnb, transportation services by the likes of Uber or Grab, and retail shops by e-commerce platforms. 7  Thais are especially keen on social media platforms, e-commerce, and social commerce. We are ranked among the top five countries with the highest share of ecommerce purchases, and this share is expected to keep increasing. For traditional businesses who do not adapt, this means more competition in a shrinking market. On the other hand, there are plenty of opportunities to be taken. By enabling their users to share assets, sharing platforms help eliminate the need for individual business to take on huge investment cost upfront. The direct connection and platform-based trust between buyers and sellers across the globe also provide opportunities for firms—especially SMEs—to design their own product flows, get direct customer feedbacks, and quickly expand their customer base like never before. 5. Excess global liquidity with historically high leverage The last trend I want to highlight this evening is excess global liquidity which has led to a historically high degree of leverage, along with the vulnerabilities that come with it. We have been living in the low-for-long interest rate environment since the Global Financial Crisis.
The measures included in this plan would have a positive impact of 0.2 pp on the average GDP growth rate. 3  situation, use of the Next Generation EU (NGEU) funds and financing conditions that, while somewhat tighter than in previous quarters, remain favourable. Turning to the inflation forecasts, in step with the paths of the corresponding futures markets, the upward pressures of the energy component are expected to peak in the second quarter of 2022 and then decelerate. The inflation projections rest on two assumptions: (i) that, in line with the information from the EBAE, the pass-through of higher intermediate costs to final prices will only be relatively moderate (albeit more forceful than envisaged in the December projection exercise); and (ii) that the second-round effects will be limited, i.e. scant feedback effects between inflationary pressures on prices and wages. Inflationary pressures will be partly alleviated by the measures contained in the National Plan to respond to the economic and social consequences of the war in Ukraine.4 Furthermore, these projections do not yet include the possible changes in prices on the electricity market that are currently being negotiated in the European Union. Against this backdrop, the projections see inflation standing at 7.5% in 2022. It will then fall in 2023 to around 2%, thanks, above all, to the moderation of the energy component. Underlying inflation will not start to decline until end-2022, once the upward pressures on firms’ costs associated with energy prices and bottlenecks have corrected.

This one does not need to end – not because we are due Basel IV, or another raft of reforms, but because we will continually adjust as the industry itself innovates. Adjustments will be based on improved engagement with the industry about what’s necessary and conversations with a much wider range of people. Buried in your iPads, under the financial regulation section, is a list of all the current work streams of the FPC, FSB, BCBS, EC, CMU, et cetera – it’s all in there. Of course, there are very few people who know what all those acronyms are and what they mean – and shame on them if they do! This reinforces the point about comprehension, one of the most important takeaways from today. As Jon Cunliffe noted just a short while ago, rather than burying people in acronyms, the responsibility of the official sector is to explain what’s going on, why certain things are being done, and what else is necessary. In other words, as a senior banker once told me early on in my career in the private sector, “If it doesn’t make sense, it doesn’t make sense”. I asked him to repeat it because it didn’t make sense to me at first. If someone in finance explains something and it doesn’t make sense, and if when they repeat it still doesn’t make sense, it’s very likely that they don’t understand it themselves, which is quite often the case, or that, actually, it doesn’t add up.
This may include the use of machine learning and artificial intelligence capabilities to mitigate ML/TF risk, while preserving the speed and convenience of faster payment systems. Proportionate regulation Let me now turn to the next regulatory priority, which is proportionate regulation. Importantly, efforts to strengthen the regulatory and supervisory framework for payments oversight must seek to uphold a key principle: proportionality. More than ever, regulators will have to make tough 3/6  BIS central bankers' speeches  judgment calls on the appropriate trade-offs between competing regulatory demands. For example, open data initiatives that seek to democratise access to customer information would need to consider implications to data security as well as cultural attitudes to data privacy. Providing a seamless user experience to on-board customers for digital payments could also run counter to AML/CFT controls that are traditionally held up as best practice. These are but a few of the examples of the dilemmas that we will have to grapple with. In this regard, a ‘one-size-fits-all’ approach is tempting because it is simple. But its simplicity is precisely why regulators must avoid it. Effective regulation today demands differentiated regulatory requirements that cater for a spectrum of risk profiles. This should be ascertained after undertaking a granular assessment of these risk profiles, and identifying the necessary areas that continue to require risk mitigation measures. Of note, this goes beyond having sandboxes, which are already more common in the regulator’s toolkit. In Malaysia, for example, the regulatory regime for e-wallets is differentiated by size.

When achieved, it can transform the global financial system more than anything else. It’s not for me to set out the ideas today (Svein will do so later), but there are ideas developing that I believe will, in at least some key centres, become concrete policies for putting losses in the largest firms in the world not just onto shareholders but onto their unsecured, uninsured creditors rather than onto taxpayers. I would expect that over time to lead to adjustments in the business models and organization of the most significant firms in the world. What’s more, on the whole, I think they will welcome that. 5. Capital markets  The next element of the reform programme is capital markets. Too much of the reform debate has probably revolved around banks, both in response to this crisis and in response to earlier crises. We live in a world where financial intermediation does not just go via banks and insurance companies, but it goes via capital markets and the vast array of institutions, investors and issuers that the capital markets encourage into existence. I will highlight just two key changes on this front. One, there is a determination that a lot more OTC (over-the-counter) derivative activity will go through central counterparties, rather than being settled bilaterally. This can have enormous benefits in terms of laying down standards for collateralisation, valuations, and ensuring transparency of what is going on in those markets.
Andrew Large: Convergence in insurance and banking - some financial stability issues Speech by Sir Andrew Large, Deputy Governor of the Bank of England, at a conference in the Mandarin Oriental Hotel, London, 12 June 2003. *  *  *  Introduction In getting together my remarks, I found myself wondering why you asked me, a central banker and former investment banker, to address this illustrious gathering of the insurance industry. What is it that makes central banks so interested in insurance? Central banks typically have two major preoccupations. Monetary stability and financial stability. Clearly those of us with an eye on the macro economic drivers which impact monetary stability cannot fail to have taken an interest in the volatility of equity markets. And that volatility has real implications for the life assurance world. Secondly, the way catastrophe and other cover can be extended in a world where terrorism is a fact of life has its own significance for the workings of the real economy. But it’s from the point of view of financial stability that I’d particularly like to develop some thoughts this morning. After all financial stability is about identifying and countering risks and threats which could ultimately impact confidence in the banking or wider financial system.

In turn, higher real interest rates tend to depress economic activity and bring even lower inflation. This is the kind of spiral, possibly leading to deflation that monetary policy must seek to control and avoid. The process may become even more self-sustaining if it negatively affects inflation expectations. Over the last months, inflation expectations in the euro area have dropped to 1.2% at a one-year horizon and 1.5% at a two-year horizon. More worrisome, long-term expectations – up to now extremely well-anchored around 2% – have been drifting downward. Markets currently expect an inflation rate of 1.8% on average between 2019 and 2024 in the Eurozone. Monetary policy therefore must aim at influencing both nominal interest rates and inflation expectations. This is exactly what we are currently doing in the Eurosystem. Let me explain how. First, on nominal interest rates: Policy rates are now close to zero (%). Negative interest rates have been imposed on the deposit facility. Forward guidance has been used to signal that rates will stay at those levels for a very lengthy period of time. A new liquidity facility, the “targeted very long term refinancing operation (TLTRO)” has been created, with a four-year maturity and, for the first time, a guaranteed fixed rate. Basically, banks are able to get a four-year funding for a 0.15% fixed interest rate. Most recently, the ECB Governing Council has decided a program of private asset purchases, for both covered bonds and ABS.