samchain/econo-pairs-v1 huggingface dataset:
But we have also experienced that the income settlements may be a source of economic disturbances. The income settlements in the mid-1970s and 1986 had the strongest negative impact. The settlements in 1998 and 2000 also fuelled high cost inflation. Retrospective evaluation of monetary policy Today's inflation rate is partly the result of the interest rate that was set one to two years ago. Therefore, today’s consumer price index figures provide a basis for assessing the results of the monetary policy conducted some years ago. Monthly figures for the consumer price index are influenced by random or temporary factors that have little impact on developments in inflation over time. Electricity prices are affected by precipitation levels. Changes in indirect taxes have an immediate impact on the consumer price index. The direct effects of these factors on inflation will be non-existent after a year. Hence, they will not have any significance for the interest rate, which is normally set with a view to maintaining inflation at 2½ per cent two years ahead. However, it is still interesting to adjust monthly inflation figures for temporary effects to determine whether developments are broadly in line with our projections. Norges Bank analyses and presents figures for consumer price inflation where the effects of some temporary factors are excluded. In April, the year-on-year rise in the consumer price index was 3.8 per cent. Figures were affected by sharp increases in both electricity and petrol prices and by higher indirect taxes.

As you well know, in response to the financial crisis, measures were taken along different lines, which helped solve the main shortcomings affecting the Spanish banking sector at that moment in time and positioned it in a good starting point for the implementation of the SSM. In addition to measures taken to reduce the level of exposure to real estate development and to drive greater consolidation in the sector, a major effort was made in the field of recapitalisation, which went beyond the actions taken by public authorities. Since 2008, the sector has set aside new provisions for outstanding loans or foreclosures for approximately € billion. And, after absorbing this substantial balance sheet clean-up into results or reserves, banks have managed to increase their own funds by approximately € billion over the same period. However, a key part of the reform was the overhaul of the regulatory framework of the saving banks’ sector, which represented almost half of the Spanish banking system. As you are aware, this reform aimed at separating the ownership of the banking institutions from their management. Former saving banks (except for two small institutions) have all become banking foundations whose main asset is the participation in credit institutions. The latter are managed independently of the foundation and take the form of regular corporations which, in most cases, are or will soon be listed in capital markets.
This is due in part to the weakness of the euro, not least against the US dollar and the Japanese yen. On the other hand, the effective krone exchange rate - the krone exchange rate measured against an average of our trading partners’ currencies - has not been particularly strong. If Norges Bank were to respond to this situation by using the interest rate to attempt to fine-tune the krone exchange rate against the euro in the short term, this would lead to higher price and cost inflation. This would lay the foundation for subsequent instability in the krone exchange rate. 13  BIS Review 105/2000  The orientation of monetary policy in the past year (and in the future) Projections of future inflation and macroeconomic developments play an important part in the orientation of monetary policy. Norges Bank’s projections are published in quarterly Inflation Reports, which provide an overview of recent price trends and factors influencing price and cost inflation. These Inflation Reports contain a review of the outlook for the Norwegian economy, and the Bank’s projections of inflation with a two-year horizon. Norges Bank’s assessments are summarised in a leader in each report. If the Bank’s inflation projections, for a given interest rate scenario, do not approach the level of inflation aimed at by the euro area countries at a two to three-year horizon, this will constitute grounds for adjusting interest rates. This system has similarities with what Lars Svensson terms “inflation forecast targeting”.

There are also other dissimilarities between the functioning of our respective economies and between our institutional frameworks which may shed some light on the differences between our monetary policy regimes:  11  BIS Review 105/2000  •  Denmark has a long history of a fixed exchange rate which inspires credibility;  •  Denmark’s membership of ERM II provides exchange rate policy with an institutional anchor;  •  Denmark has more stable terms of trade than Norway. Moreover, there is strong and well-deserved confidence in the ability of fiscal policy to stabilise economic growth in Denmark. The most substantial changes in the Norwegian terms of trade are due to fluctuating oil prices. Variations in Denmark’s terms of trade are negligible. In this sense the Norwegian economy has more in common with countries like New Zealand and Australia, which are also large exporters of commodities. A substantial change in the terms of trade  BIS Review 105/2000  12  translates into considerable changes in these countries’ earnings and balance of payments. Over the years this has resulted in sizeable exchange rate fluctuations. The exchange rate is a buffer against changes in the terms of trade. While a country like Denmark has maintained a stable exchange rate, commodity-producing countries typically experience fluctuations in the exchange rate in tandem with changes in the terms of trade. In New Zealand, Australia and many other countries monetary policy is oriented directly towards price stability, and these countries permit short-term fluctuations in the exchange rate.
Denis Beau: What financial sovereignty in a digital world? Morning closing keynote speech by Mr Denis Beau, First Deputy Governor of the Bank of France, at the 8th Annual Meetings of France Payments Forum, Paris, 3 March 2020. * * * We now live in an increasingly digital world, in which technical progress makes it possible to market new goods and services that claim to simplify and enrich our lives. In the area of finance, like elsewhere, innovation seems to have followed a historical process rendering it practically invisible: As St Exupéry writes in Wind, Sand and Stars “Thus, precisely because it is perfect the machine dissembles its own existence”. Behind this apparent simplification, however, lies a profound change in financial activities, their ecosystem and their international integration. This change raises many challenges for our national and European sovereignty, which fundamentally means our ability to preserve and impose our collective choices in terms of stability, efficiency and fairness of the financial system. As a central banker and supervisor, I serve an institution that has been mandated by the legislator to help enforce these choices by ensuring the stability of the financial system, especially in the area of payment systems and means of payment, which is the subject of this conference, as well as their security and smooth functioning. These escalating challenges to our sovereignty are therefore something I cannot ignore.

Market participants can then use this standardised information to assess the value of projects and price them better. Testing the use of remote sensing technology combined with satellites to more 7 / 10  BIS central bankers' speeches  accurately verify carbon sequestration. This is important to ensure that credits issued from a project represent real and measurable reductions in emissions. Complementing the Sustainability Alliance, DBS Bank, Temasek, the National University of Singapore, and Conservation International have come together to research nature-based solutions. I am pleased to share that they launched just this morning a joint report studying the commercial viability of nature-based solutions. Temasek and DBS Bank are leading a six-month Technology Accelerator for start-ups interested to use technology to scale nature-based solutions. The National University of Singapore, the World Bank, and Google have come on board as partners to the Accelerator. International co-operation remains key to growing the Asian carbon credits market. The Task Force for Scaling Voluntary Carbon Markets, sponsored by the Institute of International Finance, has launched a consultation paper outlining 17 very sensible recommendations. Singapore is keen to work with like-minded countries and businesses to test-bed the recommendations of the Task Force… … and to start laying the foundations for a viable carbon credits market in Asia. Green Finance Action Plan The second way in which Singapore seeks to facilitate Asia’s transition to a sustainable future is through the Green Finance Action Plan, which MAS launched at the FinTech Festival last year.
Norges Bank interprets a “significant” change in the exchange rate as a change that fuels expectations of price and cost inflation to the extent that the change in the exchange rate becomes self-reinforcing. 7  BIS Review 14/2000  Monetary policy can counter such a self-reinforcing movement in the exchange rate by contributing to low and stable inflation without recession. In its conduct of monetary policy, Norges Bank therefore places emphasis on fulfilling the fundamental preconditions for exchange rate stability against the euro: monetary policy instruments must be oriented towards bringing inflation down to the level aimed at by the Eurosystem. At the same time, Norges Bank must prevent monetary policy from contributing to a deflationary recession as this may weaken confidence in the krone. The experience of the 1970s and 1980s shows that monetary policy cannot in the long run steer competitiveness or the size of the exposed sector. If we attempt to do so, monetary policy only contributes to instability. Such real economic fundamentals may on the other hand be influenced through fiscal policy and cooperation between the social partners. Norges Bank cannot with open eyes contribute to higher inflation or a deflationary recession. This would contribute to an unstable krone. Hence, there is no conflict between gearing monetary policy instruments towards low and stable inflation and the objective of a stable krone exchange rate over time.

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Malaysia also remains the leading global sukuk issuer, accounting for over 53% of new global issuance worth USD34.8 billion in 2015. Over the past decade, BNM and MyClear had invested significantly to build the capital market infrastructures to facilitate multicurrency securities issuance, depository and settlement via the Fully Automated System for Issuing/Tendering (FAST) and RENTAS, respectively. There are immense opportunities to add to the breadth and depth of the Malaysian debt securities market, especially in the diversity of its currency and investor base. Hence, the financial services industry has the opportunity to leverage on Malaysia’s capital market infrastructures by incorporating FAST and RENTAS in the securities offering documents as an additional option for foreign currency securities issuance, depository and settlement. To facilitate the synergistic collaboration that I had highlighted earlier, MyClear would share its infrastructure development roadmap with the industry. This would assist both the financial and business communities to align their resources for infrastructure development as well as to identify opportunities for the offering of innovative solutions to their customers. MyClear and BNM would coordinate the industry awareness and educational programmes to promote the new payment services for mass adoption by businesses and consumers. 4. Providing end-to-end financial solutions to customers  Holistic financial solutions as a competitive edge Financial institutions are no longer differentiated by payment infrastructure that is proprietary and duplicative in nature. Through the centralised payment systems offered by MyClear, the Malaysian Electronic Payment System Sdn. Bhd.

BNM will continue to work with the industry and act as a catalyst to foster a conducive payment ecosystem. MyClear as the operator of the nation’s key financial market infrastructures would coordinate the industry efforts in infrastructure enhancements. Financial institutions should continue to intensify their efforts in providing innovative and value-adding financial solutions that meet the needs of their individual and corporate customers. Businesses and consumers, on the other hand, should embrace and integrate e-payments and other digital financial services into their daily activities to benefit from enhanced efficiency and productivity. The symbiotic relationship among all the stakeholders will drive the transformation and modernisation of Malaysia’s payment ecosystem. A safe, reliable and efficient payment ecosystem will support the country’s economic growth, competitiveness and productivity. Let me conclude by congratulating MyClear and the winners of today’s awards ceremony from both the financial and business communities. I hope today’s event is the stepping stone and would inspire bigger achievement in our endeavour to accelerate the migration to epayments. Thank you. BIS central bankers’ speeches  5
The net value of non-performing loans for the last 12 months decreased by over BGN 660 million. Their share represents 2.66% of the total net value of loans and advances, and their amount is fully covered by the capital surplus above the regulatory requirements and buffers; Profitability, measured by the amount of profit of BGN 1.7 billion, guarantees a return on assets and capital, and is a serious source of internal support for balance sheets if necessary. In this context, the main challenges facing the banking sector to date can be summarised along three lines: the dynamics of the macroeconomic environment, the pro-cyclical behaviour of banks, and the potential risks to their profitability. The macroeconomic environment, as I noted at the beginning, is characterised by high uncertainty and the potential for escalation of risk scenarios. This implies the continuation of stress tests for the banking sector with various hypothetical negative scenarios. The banks' pro-cyclical behaviour is associated with continued credit growth. Under upward credit dynamics, the capacity of borrowers to service their obligations is sometimes overestimated. That is why the supervisory policy will continue to aim at ensuring that credit institutions act conservatively. 3/5  BIS - Central bankers' speeches  The profitability of the banks is put at risk along two lines simultaneously. First, due to the need to set aside additional provisions under a growing probability of non-performing loans; and secondly, due to limitation of the banks' scope to generate income from core activities.

For example, rising interest rates carry the risk of negative revaluations in banks' balance sheets. Under these conditions the BNB will continue to follow a conservative prudential policy aimed at further strengthening the capital position of banks through a series of microand macro-prudential measures. Therefore, at least in the short term, we see no reason to relax our prudential policy. The path to the euro area The path to the euro area has the potential to become a catalyst for processes that consolidate the political and macroeconomic framework. We have already witnessed such beginnings. Most recently, the parliament adopted a decision with a near-constitutional majority to speed up the process of preparing for the introduction of the euro with a target date of 1 January 2024. It is difficult to find another topic today that receives such impressive political support. The fulfilment of the nominal, so-called Maastricht, criteria – a mandatory condition for joining the euro area – implies the implementation of policies that are good for the country, even outside the context of the euro area, and thus would help to consolidate the macroeconomic framework. These policies are aimed at curbing and reducing inflation – the big topic of the day, as well as fiscal discipline, maintaining long-term interest rates at a healthy level for the economy, and maintaining currency stability. Despite the problems we face, Bulgaria is still positioned well in terms of the Maastricht criteria.
Enhancing resilience in payments Speech given by Victoria Cleland, Executive Director; Banking, Payments & Innovation  PayExpo, London 8 October 2019  With thanks to Samantha Leighton and James Sanders for their assistance in preparing this speech. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches  It is a pleasure to be speaking at PayExpo at the Business Design Centre in Islington today, in an agenda packed with innovation and technological advance. I lived in Islington when I first moved to London, which had the great benefit of enabling me to walk to work. I now live further afield, but I am able to make the journey in similar time benefitting from advancements in new(er) technology – a bicycle! It is also a pleasure to be speaking at a second major payments event in London in a month, following hot on the heels of SIBOS in late September. This demonstrates the importance of London, and the UK, as a hub for payment innovation and fintech more widely. In the second quarter of 2019 funding for fintech companies topped $ growing 24% quarter-on-quarter1 – just one sign of a thriving industry.

2  As used in the Norwegian debate, “parity policy” refers to the monetary policy of the 1920s, when the Norwegian krone was forced back to its former gold parity by means of highly deflationary policies. (Footnote not included in Norwegian text.) 3  See Ecklund (2008), p.43-44. 2  BIS Review 111/2008  The crisis in the 1930s, which severely affected the Norwegian economy, led to changes in views regarding economic policy. The parity policy experience was probably an important reason for this change. As a result, there were few objections when after liberation in 1945, the government with the Storting’s support made decisions that under the law were the responsibilities of the central bank. This was the start of a new era of reduced independence for the central bank. The discount rate, for example, was reduced to 2.5 per cent on the recommendation of the government in January 1946. The Bank's task was to implement the government's decisions. Norges Bank nonetheless played an important role in shaping monetary policy, for example serving as an interface with international financial community and acting as adviser and facilitator. 4 In the first decades after the Second World War, it was firmly believed that the economy could be fine-tuned in the desired direction by coordinating instruments established by the central authorities.
For example, Etsy, the popular e-commerce website, which in many ways resembles a retail company, relies on technology to underpin its business model. But it’s not just New York City that is growing nicely. Employment levels on Long Island and in parts of upstate New York—most notably the Albany, Buffalo and Rochester metro areas—have also climbed and are at or near record highs. During my recent trip to upstate New York, I saw first-hand some of the positive developments in Rochester and Buffalo. After undergoing a prolonged period of economic transformation and reinvention, Rochester’s economy is now more diverse and dynamic than ever before. Meanwhile, the growth in Buffalo was striking. The numbers show a dramatic uptick in construction 2  BIS central bankers’ speeches  employment, and the visual evidence of development was widespread. I was especially impressed with the downtown and waterfront areas, as well as the new SolarCity factory—all of which looked dramatically different than when I visited the area less than two years ago. Both of these places are well positioned for future success. On the other hand, the employment recovery has been slow to take hold in both Northern New Jersey and the Lower Hudson Valley, where jobs are still not back to their pre-recession peak despite employment growing steadily. For Northern New Jersey, this lag is due, in part, to a stall in the growth of jobs in professional and business services. But the education and health sectors continue to add jobs, and construction employment is seeing a rebound.

Since the summer of last year we have cut our policy rates into negative territory, launched a credit easing package and begun purchasing private and public sector securities under the asset purchase programme (APP). A large body of evidence has accrued in that time that our instruments are powerful. And that evidence has allowed us to refine further our understanding of the amount of stimulus required to bring inflation back to 2% without undue delay. For example, since we launched our credit easing package in June 2014, composite lending rates for firms have declined by more than 80 basis points for the euro area as a whole, and by between 110-140 basis points in stressed economies. That is a formidable pass-through. ECB staff estimates suggest that we would have needed to reduce the standard policy rates by around 100 basis points in June 2014 to achieve a similar effect on bank lending rates. Improving financing conditions have also fed into improving macroeconomic conditions. According to Eurosystem staff assessments, our measures will add almost 1% to GDP between 2015 and 2017. And we are seeing an effect even on smaller firms that are typically harder for monetary policy to reach. In our most recent survey on smaller firms in the euro area, for instance, we saw for the first time since 2009 that the net percentage of small firms registering an improvement in business activity has turned positive, for all size sub-groups. Crucially, our measures are also gradually feeding through into inflation.