samchain/econo-pairs-v1 huggingface dataset:
In turn, this means that a country-specific shock will be harder to handle for stabilisation policy. However, large asymmetric shocks occur fairly seldom, no more than a handful of times in the course of a century and as long as the shock – be it of internal or external origin – affects all countries within the monetary union, this poses less of a problem since the common monetary policy can respond to such a shock. If the monetary union also has a floating exchange rate, it will act as an automatic stabiliser. The principal gains to be anticipated from joining a monetary union come from an improved functioning of the economy and an increase in foreign trade. A common currency means greater price transparency and therefore stiffer competition in, primarily, markets for tradables. In a country with a floating exchange rate, small- and medium-sized companies often find it too costly to hedge against currency risk when exporting or importing. When joining a monetary union, the absence of currency risk provides a greater incentive to trade, an incentive that will grow with the size of the union. Also, a common currency means that transaction costs for currency trading disappear. 1  Already Mundell (1961) noted that “[e]xcept in areas where national sovereignty is being given up it is not feasible to suggest that currencies should be reorganized…” (p.664). BIS Review 73/2006  1  However, when a country is weighing loss against gain, both are difficult to quantify.

At the very least, the SGP has served well in bringing the political attention to the need for sustainable public finances. A final observation concerns the dichotomy of before and after entry into the union. The general view among euro area accession countries seems to be that a lot would be gained from membership of the monetary union and the convergence criteria are viewed as a goal, while a widespread view among the old member countries seems to be that once a member, the SGP is a cumbersome constraint. 5  For a recent study of the SGP’s effects on fiscal policy, see, for instance, Annett (2006). BIS Review 73/2006  5  Characterising the two cases – wanting to join and being a member – I believe it is clear that the carrot outperforms the stick. Contrasting the willingness to undertake reforms in the new accession countries with the state of affairs among the old members, the difference is rather striking. It is equally evident when comparing today’s situation among the old members, with that before membership. Given the importance of equal treatment of countries, it is far from certain that it is possible, or perhaps even desirable, to align the economic and legalistic view, but I believe that it is worth trying when establishing such a framework. With Rwanda and Burundi having applied to join, these types of considerations are currently a matter for the EAC as well.
Thomas C Baxter, Jr and Sarah J Dahlgren: The Federal Reserve Bank of New York’s involvement with the American International Group (AIG) Joint written testimony before the Congressional Oversight Panel by Mr Thomas C Baxter, Jr, Executive Vice President and General Counsel, and Sarah J Dahlgren, Executive Vice President, of the Federal Reserve Bank of New York, Washington DC, 26 May 2010. *  *  *  Chair Warren and Members of the Panel, thank you for giving us the opportunity to testify here today regarding the Federal Reserve Bank of New York’s (New York Fed) involvement with AIG. I. The decision to lend to AIG  On the morning of September 16, 2008, it became clear to Federal Reserve and Treasury policymakers that AIG, then one of the world’s largest insurance and financial firms, was facing a potentially fatal liquidity crisis. AIG’s crisis was coming amidst the collapse of the housing market, within weeks of the receiverships of Fannie Mae and Freddie Mac, and within 24 hours of the bankruptcy of Lehman Brothers. Confidence in the financial system was exceptionally fragile, and financial firms were taking dramatic and unusual measures to protect their balance sheets. Money market funds, long viewed as a safe investment by millions of Americans, were experiencing massive withdrawals. The run on these funds, in turn, severely disrupted the commercial paper market, a vital source of funding for American businesses. Securitization markets started to seize up, especially those that relied upon instruments backed by consumer loans.

Only 4.2% of investment accounts intermediated by Islamic banks are suitable to finance transformation, such as in supplying growth capital to industries of the future or new business models. 3. We have also yet to make the most out of the full range of Shariah contracts in finance application today. Benevolent contracts, risk sharing contracts and other asset-based contracts have yet to be fully utilised to offer a broader spectrum of funding, investment and protection solutions. This means that we are not realising the full potential of value-based finance to address contemporary economic and social needs. This also points to a continued need to foster appreciation of the fundamental values of Shariah among market participants and its embodiment in financial solutions, services and conduct. Changes to the way Islamic finance operates cannot happen overnight. But what the industry does today will be crucial in bringing to life the fundamental values of Islamic finance, and showing how it is relevant to address contemporary challenges. In my view, to elevate the values of Islamic finance to the next level, the industry must seek to embody and exemplify the value of ihsan, continuously striving for attainment of excellence. A hadith narrated in Sahih Muslim reported that Prophet Muhammad (peace be upon him) said, "Verily, God has enjoined excellence (ihsan) with regard to everything." Manifesting ihsan in Islamic finance, thus, calls upon all stakeholders to steadfastly find ways to transform and deliver the highest standards in all aspects of its business.
So, as well as delivering the highest levels of resilience, we need to make sure we take this once in a generation opportunity to facilitate innovation for many years to come by expanding the functionality of the renewed service. Whether that is ensuring that the new RTGS can interact with Distributed Ledger Technology, or developing hooks to allow third party operators to synch the movement of funds on the RTGS ledger with movements across other ledgers, we expect to deliver a platform that enables the future generation of financial services. Across all of these services, the data that are used, and the way that they are formatted and presented to users, is vital. And because the standards we are implementing are used internationally, there is a critical need to ensure we implement them well. 5  See previous footnote. For numerous examples, see Haldane, A (2018), “Will Big Data Keep Its Promise?”, available at https://www.bankofengland.co.uk//media/boe/files/speech/2018/will-big-data-keep-its-promise-speech-by-andy-haldane.pdf 7 The Real-Time Gross Settlement service is the infrastructure that holds accounts for banks, building societies and other institutions. The balances in these accounts can be used to move money in real time between these account holders, this delivers final and risk-free settlement. 8 As set out in Carney, M. (2018), “New Economy, New Finance, New Bank”, Mansion House Speech 2018, available at https://www.bankofengland.co.uk/-/media/boe/files/speech/2018/new-economy-new-finance-new-bank-speech-by-mark-carney.pdf.

Sim Kee Boon helped to chart Singapore’s economic development through the turbulent 1970s, when stagflation and oil price shocks shook the world’s economies. We are living in even more interesting times today. 27. The Institute has gathered an impressive collection of talent here today. I wish you fruitful discussions. Thank you. 4  BIS central bankers’ speeches
The global Islamic financial system is now operating at a time when the international economic and financial environment has become immensely more challenging. New risks that are more complex, with more profound systemic implications are emanating with the increasing forces of financial liberalisation, globalisation, technological advancement, intensified competition, 2  BIS central bankers’ speeches  financial innovation and the internationalisation of Islamic finance. Cumulatively, these developments necessitate greater prudential regulation and supervisory oversight to ensure a resilient and sustainable financial system. The role of the IFSB remains instrumental and paramount as we face a time of increasing uncertainties. Continuous and stronger support for the IFSB, particularly from its members including in actively providing feedback on its Consultative Papers and in the participation in IFSB related events, supported by the existing collaboration and cooperation among the regulators would collectively strengthen the potential for the IFSB to manage its journey ahead. Greater concerted efforts by members to consistently adopt and implement the prudential standards issued by the IFSB will not only contribute towards preserving financial stability but it will also enhance regulatory harmonisation across jurisdictions. These efforts will indeed place us on a path to realising our quest and shared aspirations for a more resilient and sound global Islamic financial system. It is also timely for the IFSB to elevate its level of engagement and connectivity with other international standard setting bodies.

Governance of EU-UK Financial Interconnectedness And that brings me back to the subject of the governance of international finance – the way in which jurisdictions can gain the assurance about the import and export of financial sector risk necessary for their economies to benefit from the efficiency, opportunity and risk management offered by financial globalisation. For the last 30 years or so the governance for cross border financial activity within the EU has been increasingly provided by the legislation, regulation and institutions of the single market in financial services. For the UK, this will continue for another 11 months. But after that we will need new ways to provide the governance for the deep financial connections that will continue between us. The progress in stronger international governance frameworks that I have described provides the basis for that. The development of international standards, of the norms for cooperation, the machinery for scanning and assessing risks and for generating common approaches, provide for mutual assurance in a way that was not possible in the past. We will be able and will need to build on that basis. Some of this may come through the ‘equivalence’ regimes present in some EU legislation, regimes that will initially at any rate be mirrored in UK legislation as we start with the EU acquis on-shored into national law. But those regimes cover only a part of the cross border connections.
This naturally impacted the financial health of the corporate sector, and business failure rates rose to levels comparable to those of the early 1990s. These economic trends, combined with the discovery of egregious shortcomings in corporate governance, fuelled misgivings about stockmarkets. And amid a global bear market, equity volatility soared. Consequently, as in 2001, capital market business in the broad sense of the term - securities, mergers and acquisitions, and the fees and commissions charged for these activities - were adversely affected. 1.2  Despite an unfavourable climate in 2002, French credit institutions reported net income on a par with 2001. French credit institutions reported net income of 17.7 billion euro in 2002, the same as in 2001. This works out to a return on equity of 9.4 per cent for the industry as a whole. As in previous years, these results were largely attributable to retail banking business in France. Consumer credit and home loans continued to grow, along with specialised financial services. In addition, falling interest rates had a positive effect on interbank business - which in France has always been significant - and drove down the net expense on these transactions. By contrast, capital market activities and asset management were hit by financial market turbulence, giving rise to substantial provisions in some cases. Furthermore, for the second year running, fees and commissions contracted as a percentage of net banking income, falling to 26 per cent compared with nearly 30 per cent in 2000.

Moreover, the appendixes to this Annual Report include a study of the prudential consequences of the international accounting standards that will apply in Europe from 2005 onwards. * In sum, French credit institutions in 2002 amply displayed their ability to withstand cyclical contingencies. Improvements can still be made in terms of risk spreading and surveillance. This is one of the factors to which the Commission Bancaire will play close attention as banks prepare and phase in information systems ahead of the introduction of Basel 2 and new accounting standards. In addition to the two studies I have already mentioned, the appendices of the Annual Report include a review of risk management in financial conglomerates. Let me also mention that a summary of the Commission Bancaire’s judicial decisions is being published at the same time as the Annual Report. This first edition will be updated yearly. 4  BIS Review 32/2003
Ong Chong Tee: Strengthening trust in our capital market Keynote speech by Mr Ong Chong Tee, Deputy Managing Director (Financial Supervision) of the Monetary Authority of Singapore, at My Money Seminar, Singapore, 16 November 2019. * * * 1 Ladies and gentlemen, good afternoon. It is my pleasure to join you in this afternoon’s My Money public seminar. My Money was an initiative back in 2009 of the national financial education programme MoneySense, in collaboration with the Association of Banks in Singapore (ABS), the Securities Investors Association of Singapore (SIAS), and the Singapore Management University’s (SMU) Sim Kee Boon Institute for Financial Economics. 2 The name of the programme itself, My Money, underscores the importance of taking personal responsibility for one’s own finances— be it spending, savings or investments. 3 This afternoon, I will focus my remarks around some issues related to the retail investor. A retail investor must know his or her own return objective and risk tolerance. He should understand the products that he is looking to invest in, and how these products can achieve his investment goals. 4 Other stakeholders also have an important part to play. These will include the banks, fund managers and other financial service providers that are involved in the creation, marketing and sale of financial products. Regulators like MAS and SGX RegCo are of course also integral in that they set the ground rules for participants in the marketplace.

If you are able to trust the other party to the contract, you do not have to hedge against all possible outcomes.10 The wheels of business turn faster and more smoothly. The 1800s were characterised by upheaval and a change in the pace of economic development. In the old society, safety lay in close-knit networks and small institutions: the family, relatives and neighbours. Once the pace of development picked up, however, these networks and institutions were no longer sufficient. New ones were needed. Local savings banks are a good example. Specialisation, a market focus and new tools demanded more financial muscle than the old, family-based networks could mobilise. The solution was for villages to join forces to create savings banks, an institution rooted in the local community but reaching beyond the old networks. Løten savings bank opened in 1855. A good public school system is a prime example of an inclusive institution. In May this year, I had the pleasure of visiting Stavanger Cathedral School. The head teacher, Turid Myhra, showed a portrait of one of her predecessors, Johannes Steen; schoolmaster, statesman and nation-builder.11 Steen was notably a key driving force behind what was to become an important milestone in the construction of Norway’s collective identity: the adoption of the Primary School Act in  Andenæs found this to be an interesting statement.
Still, even when from an individual perspective agents seem to follow a sound behaviour, macro-financial factors, particularly related to the interconnectedness of financial markets and institutions, the interaction between finance and the macro-economy can contribute to the build-up and propagation of aggregate macro-systemic risks. These effects have been at the heart of the recent financial crisis and it has specifically highlighted the need for a macroprudential approach to regulation and supervision, focusing on the financial system as a whole, complementing the existing micro-prudential framework. Macro-prudential policies aim to contain the build up of imbalances and ensure that the financial system is better able to withstand shocks. They will focus on regulatory and supervisory actions aimed at curbing the macro risks of financial market activity. In this regard, it Is, of course, of utmost importance to have a close co-operation and exchange of information between the institutions in charge of macro- and micro-prudential supervision. In the EU, the Ecofin Council has agreed to establish a new independent body responsible for macro-prudential supervision, the European Systemic Risk Board (ESRB). The main task of the ESRB – in which the European System of Central Banks, the Supervisory Agencies of the 27 Member Countries as well as the newly created European authorities will play a key role – is to identify and assess risks to the stability of the EU financial system and issue risk warnings if systemic risks appear to be significant. If deemed appropriate, the ESRB can make explicit policy recommendation.

One way of maintaining credibility and support for the price stability target is, in our opinion, to show a high level of openness and clarity with regard to conducting monetary policy. Openness involves, for instance, reporting which considerations we make with regard to prospects for the business climate, etc. when we make decisions regarding interest rates. However, it also means that we are transparent with regard to the sources of knowledge we use as a basis for our decisions. Clarity is also often aimed at creating the right conditions for analysts in the banking sector to forecast how monetary policy will react to various types of new information. Consistent and symmetrical actions with regard to monetary policy increases confidence in the price stability target, which in turn should have a stabilising effect on inflation expectations. My speech today should be seen as part of our endeavour to achieve openness. In many cases, I will raise questions to which we do not have answers. Our ambition is to increase our knowledge both by studying existing research and by stimulating our own and others' research in this field. The banks are important for the Riksbank's tasks I will now move on to speak about the significance of the banks for our capacity to maintain price stability. The banks play an important role in enabling monetary policy to maintain price stability, in a number of ways. Firstly, the banks are central to the capacity to make payments in the economy generally.
The large volume of international trade in currency derivatives, which is dominated by banks reduces, premiums and costs for other business sectors and thereby promote cross-border trade in goods and services. It is not a good idea to throw a spanner into the works. The impact on household consumption and housing investment has been substantial. Business investment is now picking up. In Norway, household debt is higher than household deposits. The decline in interest rates has thereby freed up funds. Households reacted relatively rapidly, and growth in consumption picked up. The fall in interest rates pushed up house prices. Turnover in the housing market has been high. Higher housing wealth provides increased borrowing opportunities and thereby also boosts demand for consumer durables. Household debt has risen by around 11 per cent over the past year. High resale home prices have made it more profitable to build new homes, and residential construction is rising. The fall in interest rates has also contributed to sustaining the market value of office premises and commercial property even with a high vacancy rate. With the prospect of higher occupancy rates, prices are now rising. Owing to higher productivity and a drop in sickness absence, it may have taken time for the effects to become visible in the labour market. However, higher demand for labour and falling unemployment is gradually leading to a tighter labour market. High interest rates in 2002 and fiscal discipline contributed to a deceleration in wage growth to a more sustainable level.

That is why I am pleased to say that I shall be one of Vikram’s patrons for his Benefit year in 2007. Of course, I could not talk about sport in the Black Country without referring to football. Nowhere had, in my day, more first division teams within a few miles radius than the Black Country. And all the supporters of those teams have had many opportunities over the years to learn how to win and, especially, how to lose. But for the sake of local interest and rivalry, I am looking forward to the day when Wolves and the Albion are restored to the Premiership. Just as football needs a referee, so does the economy. I think of the Bank of England’s Monetary Policy Committee – the MPC – as the referee for the economy. The MPC sets interest rates to keep inflation on track to meet the 2% target. We want to allow you to focus on running your businesses – you are the players – while the MPC quietly gets on with its job. You may have seen in the news that yesterday the Bank of England published its latest Inflation Report. That set out our view on the prospects for the economy over the next couple of years. Perhaps I could briefly summarise our latest analysis of the UK economy. For the past year GDP has grown at a rate around its long-term average. Inflation has picked up and has been above the 2% target since May.
Once again, “Selamat datang” to Kuala Lumpur and thank you for being here. BIS central bankers’ speeches  3

Indeed, the tensions were amplified by the weaknesses of European institutional arrangements and by the prevailing doubts over the willingness and ability of national governments to tackle the structural and budget deficit problems of their economies. Evidently, the Greek crisis has highlighted the incapacity of the Stability and Growth Pact and, more generally, of the European economic governance framework to prevent the excessive build-up of imbalances and to pursue timely corrective action. As you know, the European authorities have reacted to this need by initiating a deep-seated review of European governance mechanisms, some of the results of which are already coming to light. It can thus be said that as a result of this crisis, economic policies and, in particular, the fiscal policy of the EU Member States, will be subject henceforth to closer and more detailed  BIS Review 129/2010  1  control by the European institutions so as to anticipate and forestall inconsistencies and imbalances. Any build-up of the latter will ultimately entail major costs not only for the countries concerned, but also for the European single currency project. Further, attributing events exclusively to market excesses would mean ignoring the importance of the effects of the decline in activity and employment, of the deterioration in public finances and of financial systems on the possibilities of recovery, and the major economic policy challenges posed thereby, most particularly in the fiscal realm and in the field of structural financial reform.