samchain/econo-pairs-v1 huggingface dataset:
It is therefore probable that the increased structural changes entailed in the liberalisation of sectors such as agriculture and the textile industry would entail demands for support to manage the changes and a better business climate in many industrial nations in order to facilitate mobility between sectors. I have previously mentioned the important work conducted with regard to creating and implementing norms and standards to prevent economic crises in different countries around the world. Despite good results, historical experiences show that crises will probably occur nevertheless. In a few cases this will lead to states experiencing payment problems. We therefore need to have a multilateral framework that can efficiently deal with any problems that arise. Both the IMF and other international forums have put a lot of work into improving crisis management in recent years. Several improvements can be noted, including collective action clauses, which are increasingly used in sovereign bond contracts and will facilitate renegotiation of sovereign bond debts in the future.3 Some progress has also been made within the framework for cooperation between the public and private sectors with regard to a voluntary code of conduct for states’ payment problems. Of course these improvements are very positive. However, my impression is that we need a coherent framework for orderly renegotiations of sovereign debt in countries facing insolvency that cover all types of debt.

One example worth mentioning is that IT exports now account for almost 40 per cent of India’s total export income. All in all, the percentage of manufactured goods in developing countries’ exports has increased from 20 per cent in 1980 to just over 70 per cent in 2001 (however, in Africa the figure is less than 30 per cent). In addition, ICT developments, which have enabled more efficient production in networks and at a distance, have led to new sectors in the service industries being opened to trade and international competition. An important element in this process is the increasingly strong cooperation between ICT, trade and efficiently-functioning product markets that allows labour-intensive stages of goods and services production to be moved to low-wage countries, and that emphasises how closely linked the various components of the globalisation process actually are. The effects of increased internationalisation on people’s daily lives I consider it particularly important to point out that although integration and technological developments entail large, and in many cases difficult, adjustments for individuals, they also have direct, positive effects on people’s daily lives. The percentage of people living in extreme poverty - with a daily income of less than USD 1 - fell from 40 per cent of the world population in 1981 to 21 per cent in 2001. In absolute terms, this is a reduction from 1.5 billion to 1.1 billion people. A large part of this improvement is due to the rapid growth in China and India.
Svein Gjedrem: The conduct of monetary policy Introductory statement by Mr Svein Gjedrem, Governor of Norges Bank (Central Bank of Norway), at the hearing before the Standing Committee on Finance and Economic Affairs of the Storting (Norwegian parliament), Oslo, 18 May 2010. Please note that the text below may differ from the actual presentation. The statement is based on Norges Bank’s Annual Report for 2009, Monetary Policy Report 1/10 and the Executive Board’s assessments in the period to the monetary policy meeting on 5 May. *  *  *  I would like to thank the Chairman of the Committee and also thank the Committee for this opportunity to report on the conduct of monetary policy in connection with the Storting’s deliberations on the Government’s Financial Market Report (previously the Credit Report). My statement is based on the Bank’s Annual Report, but is also updated based on the Executive Board’s assessments for the period to the previous monetary policy meeting and new information received to date. I also refer to this year’s report from Norges Bank Watch, a group of experts that evaluates Norges Bank’s conduct of monetary policy. 1. New imbalances  The most acute phase of the financial market crisis has for a period appeared to be over. In most parts of the world, output growth has resumed. The recovery has been strongest in emerging Asia. The upturn in OECD countries has been more moderate. The economies of many countries will continue to be marked by high levels of spare production capacity.

This perversion of competition could lead to the failure of insurers to pay out claims and reputational damage to the wider UK insurance market. The collapse of a large insurer would also lead to higher prices for new consumers. This is because the Financial Services Compensation Scheme would need to be replenished by the surviving firms, who would in turn pass on these costs to their customers. Robust prudential standards underpin the sustainability of the fund and reduce the potential need for taxpayer funds to compensate policyholders following a failure, as we have seen in the past. I am not therefore persuaded of the case for giving a primary competition objective to the PRA. This would likely require the PRA to pursue competition as an objective in its own right and enable it to use its powers for that purpose alone. It's difficult to say what specific activities this would entail for the PRA. Potentially, the PRA would be given the same competition powers that sit with the FCA, allowing the PRA to undertake market studies with a view to introducing new rules with the specific aim of promoting competition. Given the potential for overlap with the FCA and the CMA, which both have specific objectives to promote competition, I would be wary of taking this route. Our secondary competition objective refers to competition, not competitiveness. This is an important distinction. Competitiveness is usually taken to mean a firm’s ability to compete on cost or quality grounds.
In a recent study by the Managed Funds Association, BNY Mellon and Hedgemark, 4 it was found that 79% of global hedge funds now separate the roles of the risk manager and fund manager, with 60% of the larger hedge funds having a dedicated risk management function. This augurs well for the hedge fund industry, as it allows the industry to grow in a more sustainable manner with strong internal control systems and risk management oversight. Asia is well placed to provide capital and investment opportunities As global institutions and investors seek to address challenges resulting from structural shifts in the global economy, many are turning to Asia to harness opportunities and to generate higher returns. This is due to a few reasons. Firstly, Asia has been leading the global recovery with growth expectations in developing Asia projected to exceed global growth at 6.7% in 2012 and 7.2% in 2013. 5 Secondly, both demand and supply side factors in Asia are relatively positive. Corporate and government balance sheets are generally healthy. Households are not overly levered, savings rates are high and unemployment is comparatively low. The rising middle class, highly educated workforce and favourable demographics are also plus points for Asia. These factors, coupled with Asia’s strong commitment to economic openness and free trade, are important in creating a business friendly and conducive environment for its financial sector to continue to thrive and grow.

BIS central bankers’ speeches  1  Long term prospects for the hedge fund industry remains positive Nonetheless, if we look beyond the immediate economic challenges, the long term prospects for the alternative investment industry remain positive. A number of studies have identified a growing interest from institutional investors for yields in the alternative space. In the 2012 Towers Watson Global Pension Asset Study, asset allocation to alternatives in the seven largest pension fund markets has increased from 5% in 1995 to 20% in 2011. In another recent study, McKinsey estimates that global alternative investments across the retail and institutional segments doubled in assets under management between 2005 and 2011, to reach $ trillion. This represents a compound annual growth rate of 14% over this period, exceeding the growth of the traditional asset classes. Specifically in the hedge fund space, institutional investors have increased allocations to hedge funds significantly over the last decade, from only $ billion in 2002 to approximately $ trillion as of end 2011. Looking forward, institutional investors in the major markets have indicated their intent to increase allocations to almost all alternative classes, including hedge funds. Increased institutional participation will drive growth as hedge funds become an important part of the investment landscape. To meet the demands of institutional investors and global regulatory standards, hedge funds have taken steps to beef up their risk management and compliance functions.
These initiatives should be further supported by efforts to mutually recognise insurance coverage across borders to facilitate trade and transfer of goods between our countries. This is an important area that should continue to be focused on by the practitioners and authorities in our shared vision towards developing ASEAN as an integrated economic region. Another important element is for the regional insurance industry, as institutional investors, to play an important role to help foster the development of the regional capital and bond market by investing in the regional securities. This should go along efforts towards diversifying the risk in the financial systems from becoming overly reliant on the banking system to fund the growing member economies. The South East Asia region is developing at a rapid pace and changes in the global economic and financial environment are driving us to continuously adopt new strategies and approaches. To quickly respond to these demands, enhanced regional cooperation is the key foundation towards achieving greater collective growth and economic prosperity. I'm confident that the gathering of regulators and industry practitioners at this 10th ASEAN Insurance Regulators Meeting and 33 rd ASEAN Insurance Council Meeting will see further concrete steps taken towards promoting cooperation and building strong, stable and competitive insurance industries within ASEAN. I wish all of you a fruitful and stimulating meeting in the coming day. On this note, I declare the 10th ASEAN Insurance Regulators and the 33rd ASEAN Insurance Council meeting opened. BIS Review 134/2007  5

The rationale behind ERM II is that, if a country succeeds in maintaining the value of its currency against the euro within the fluctuation bands for a period of two years, then it would be reasonable to assume that the country would be able to deal with the binding constraints of EMU. During this phase, accession countries will have to prove that they are able to put up with the disciplines inherent in a fixed exchange rate without imbalances arising in other sectors of the economy. That is why accession to EMU is conditional on prior participation in ERM II. Furthermore, it would be unfair on the twelve euro area countries if the EU were to demand less stringent conditions of the present wave of accession countries. Upon EU accession and during the ERM II phase, Malta, like the other accession countries, would have the status of a “country with a derogation”. Since ERM II neither entails the formal transfer of monetary policy responsibilities to the ECB nor the replacement of the domestic currency by the euro, it will not, as I have already indicated, involve any significant departure from current practice, although it offers more flexibility than our current fixed exchange rate regime, which does not involve any fluctuation band. Another difference is that the obligation to defend the central exchange rate under ERM II would be binding on both the ECB and the Central Bank of Malta. Both institutions would be expected to intervene to preserve that value.
Such an institute will also play an important role in  2/3  supporting the development of financial markets in Asia, as well as producing the next generation of Asian Financiers. The second area that should also be considered is the harmonization and streamlining of the existing rules and regulations. This is especially important for cross--border capital movements so that the region’s financial resources can flow more smoothly between economies in the region. Streamlining rules and regulations will help reduce unnecessary barriers, and through lower transaction costs, will allow a more efficient allocation of resources. For example, measures to protect domestic markets from outside competition may need to be relaxed. Along the same line, there is room to harmonize taxes on capital market transactions so that tax implications are neutral and do not act as a constraint to efficient resource allocation. Ladies and Gentlemen, My last thought for today is on ways we should proceed to expedite the pace of regional financial cooperation. At this juncture, there is no disagreement that we all would like to see more and faster progress on regional financial cooperation. And, to ensure its progress, we have seen policy makers in Asia ready and prepared to take bold and important policy actions. My view is also the same. I also want to see a faster pace of development rather than a slow one. But one also needs to underscore that, to achieve long term sustainability and continuity, the process of development needs to be market driven rather than policy driven.

To bridge this shortcoming, the region’s financial markets need to be substantially expanded and developed so that the region’s markets can effectively allocate surplus savings within the Asian region. The current focus on regional bond market development is therefore a step in the right direction. But my point today is that while developing the bond market is important, two additional areas of market developments in tandem with the work on the bond market should also be looked at to ensure a balanced development of financial infrastructure in Asia. The first is human resource: that is the need to build a steady supply of high quality financial personnel to serve the Asian financial markets. In the short term, this issue can be partly addressed by promoting a greater role of Asian financial institutions in cross-border transactions or businesses within the Asian market. The expanded role of Asian financial institutions will enhance the experience of Asian financial firms in cross-border transactions and help transfer financial skills and technology among market participants in the region. For the long term, we should be thinking of establishing a regional finance institute that aims specifically to train and develop financial personnel for the Asian market. To me, this type of initiative looks practical and is economically feasible because Asia’s large domestic market will always call for substantial demand for trained financial personnel.
It was the uncertainty over the value of the assets that led to many institutions facing problems when their assets declined in value at the same time as they suffered funding problems. Some institutions were then forced to sell of some of their assets which further pushed down the value of the assets and led to new funding problems. There was a belief that the extensive trade in financial instruments meant that the risks were spread and that the system thus became more stable. In actual fact, the risks appear to have finally landed in the bank sector. The financial system was thus in practice more vulnerable than most people – including the financial supervisory authorities – believed. 3 Expansionary monetary policy in the United States The expansionary monetary policy in the United States during the period 2002–2004 has also been held up as a possible contributory factor to the overheating in the US housing market and the ensuing financial turbulence. 4 Some analysts feel that very low, short-term interest rates contributed to the overheating. However, it should be emphasised that inflation in the United States was low during this period and there were fears that the US economy would experience what is known as a liquidity trap, which could have had very serious consequences for developments in the real economy. Here it was the experiences from Japan during the 1990s and 2000s that caused alarm.

The argument was rather that the economy could suffer a deep recession in the long term if developments led to a bubble arising which then burst. 9  ECB (2009). 10  IMF (2009). 11  Borio and Lowe (2004). 6  BIS Review 162/2009  The economists Francesco Giavazzi and Frederic Mishkin expressed concern in their assessment of Swedish monetary policy between 1995 and 2005 that the Riksbank had given too much consideration to house prices. 12 However, monetary policy that entails flexible inflation targeting – like that conducted in Sweden – has the aim of stabilising inflation around the inflation target and also resource utilisation. This means that temporary deviations from the inflation target may be motivated if the inflation target is attained in the longer term. This was also the assessment made by the Riksbank. House prices in Sweden rose by 3 per cent between the second and third quarters of this year, after a slowdown in 2008 and the average price increase since 1996 has been around 8 per cent a year. The question is whether this is a sustainable long-term development. There may be risks with this, even if the upturn is not as large as in some other countries which have recently experienced downward adjustments. Developments in the housing market in Sweden also differ in that new construction has been considerably lower than in a number of other countries.
Jiří Rusnok: The future of monetary policy - what can we see as the dust has settled? Opening remarks by Mr Jiří Rusnok, Governor of the Czech National Bank, at the High-Level Economic Conference, Prague, 16 June 2019. * * * Ladies and gentlemen, dear guests, I wish you a good morning. It is my pleasure to welcome you all to this high-level conference on “The Future of Monetary Policy: What Can We See as the Dust Has Settled?” hosted by the Czech National Bank. This conference is organised as part of this year’s celebrations of the 100th anniversary of the introduction of our national currency – named the koruna – in 1919. Before I give the floor to the distinguished speakers, let me first make a few remarks that will set the stage for the upcoming event. During the past 100 years, our currency and the overall economic situation of our country has enjoyed times of economic prosperity, but also some more difficult periods. This alternation between good and bad times applies elsewhere. Before the outbreak of the Global Financial Crisis (GFC) in 2008, it seemed that monetary policy had triumphed. Inflation in advanced countries and elsewhere had decreased to low and stable levels. The goal of price stability had been achieved. Central banks were using standard tools with well understood transmission mechanisms. The outbreak of the Great Recession suddenly changed this perspective. The GFC brought significant economic slack and deflationary tendencies to many countries. In response, central banks started using unconventional tools.

Lastly, the Supervisory Council reiterates the need to continue and deepen structural reforms, which boost productivity and enhance the competitiveness of the Albanian economy. These reforms pave the way for expanding the economic potential and should be seen as the main instrument supporting sustainable and long-term growth for Albania. BIS central bankers’ speeches  3
Hence, real sector agents, particularly firms operating in ailing sectors of the economy, are facing surmounting short-term financing difficulties and have lost sight of their future objectives. The process of restructuring in these firms has to find ways for their business to change and become efficient, in order to survive and restart growth. Finance and knowhow is particularly important during such restructuring phase. What role has the financial system in this process? We have to be clear on two issues: (1) we have constructed a financial system and pursued a financial integration strategy based on banks. In fact, they comprise more than 90% of the financial system throughout the region. We think this model is successful and with some minor revisions should serve our economies  BIS central bankers’ speeches  3  in the future. For one, foreign banks bring expertise and mostly stability to the financial system. But, recent experience has softened this argument. (2) Banks should be the main vehicle of financial inflow. As converging economies SEE is expected to run current account deficits. As such, it is a capital hungry region which international banks should intermediate. A new business model relying purely on domestically generated deposits is a wrong answer to the previous extreme of huge capital inflows. A more happy medium should be sought, one based on careful and sustainable inflow of funds. How is the Single Supervisory Mechanism going to affect the work of the central banks in the region?

It is hard to see beyond one of two ways of interpreting this statement, 2/4  BIS central bankers' speeches  neither of which stands up to much scrutiny. The first interpretation is that the rules should not change in the future, and to do so would be unwelcome. This is unrealistic, dangerous and inconsistent with practice. As the world around us changes, so must the rules to accommodate these changes. As evidence of this, look at what the authorities have had to do in response to Covid and the shock that created for financial markets. The EU is almost constantly revising, or contemplating revising its own rules, and that’s a good thing. So, I dismiss this argument. The second argument is that UK rules should not change independently of those in the EU. I am being careful to phrase this point. It’s not that UK rules might change independently – the equivalence process provides for re-assessment of such decisions, so this should not be a problem. So, it must be the stronger form that they should not change independently. But that is rule-taking pure and simple. It is not acceptable when UK rules govern a system 10 times the size of the UK GDP and is not the test up to now to assess equivalence. It’s worth considering why we would choose to change the rules. First, it would be rare to say the least if such rules turn out always to work perfectly first time and thus need no amendment.