samchain/econo-pairs-v1 huggingface dataset:
Thank you for your attention and I wish you a successful work in the forthcoming period. BIS Review 127/2009  7

The improvement reflects the expansion of domestic demand - that is increase in consumption and private investments - whereas foreign demand appears weak and fiscal policy continues the consolidating trend. The new information obtained in the first half of the year is in line with this judgement. The intensity of supply shocks, which led to the rapid decline in inflation over the first half of the year, seems to decrease. Inflation recorded a slight increase in May, reaching at 0.7%. This performance confirms our judgement about the transitory nature of the abovementioned shocks. However, our analyses confirm that the balance of inflationary pressures is still weak. Economic activity remains below potential, suggesting that the return of inflation to target will be a gradual and medium-term phenomenon. Our monetary policy has assumed a stronger stimulating stance over 2016. After two consecutive cuts in April and May, the key interest rate currently stands at 1.25%. The strengthening of the monetary stimulus has led to lowering the interest rates across all segments of the financial market, thus stimulating the increase in consumption and private investments. The Bank of Albania deems that the financial setting - characterised by low interest rates and ample liquidity - should encourage banks for a more positive approach towards lending. Banking sector’s soundness indicators have been improving, in response to economic activity recovery and other measures undertaken by Albanian authorities. Liquidity and capitalisation indicators maintain good parameters, whereas the stock of nonperforming loans - albeit fluctuating - has been put under control.
Most importantly, from a macroprudential perspective, the proposed measures would help national authorities in setting binding leverage limits for alternative investment funds to mitigate systemic risk. The recommendations foresee also a role of the authorities in suspending redemptions in a stress scenario. Going beyond the ESRB recommendation, I would argue in favour of complementing the powers that are currently envisaged for authorities with ex ante tools targeting liquidity risks at system level. Existing liquidity management tools may mitigate liquidity risk ex post, but they might not suffice to prevent the build-up of vulnerabilities in exuberant times ex ante. The toolkit available to macroprudential authorities should therefore include additional ex ante requirements such as minimum liquidity buffers and redemption notice periods.12 Mandatory liquidity buffers require funds to hold sufficient high-quality liquid assets for the fund to be able to meet redemptions and margin calls under many foreseeable scenarios. The introduction of minimum notice periods would help align a fund’s liability structure with the liquidity- and riskprofile on the asset side. Overall, such tools could be used to raise the sector’s resilience to potential investor runs or spikes in margin calls. Setting these requirements would greatly limit the sector’s ability to build-up liquidity risk in exuberant times. Finally, given the cross-border nature of the investment fund sector, we need to strengthen the European perspective in the supervision of investment funds while also ensuring a globally consistent approach to monitoring.

3  See “Archives are speaking”, Bulgarian National Bank; a compendium of documents, volume ІV, 1930–1947, pp.1018–1019. (These archives are publicly accessible on the BNB’s website.) 6  BIS central bankers’ speeches
The year 2006 will witness the release of two important policy documents: the Ninth Malaysia Plan and the Third Industrial Masterplan. The Plans will outline the key policy directions over the next several years to enhance Malaysia's long-term growth prospects, including: (i) the role of agriculture and the nascent biotechnology industry; (ii) moving up the value chain in the manufacturing sector; (iii) the increasing importance of services, especially business and shared services, including outsourcing; and (iv) the importance of education in developing the human resources needed to achieve the development objectives. An important strength of our economy for several decades now, is its flexibility, that is the ability for resources to shift to new areas of comparative advantage in response to changing conditions and new opportunities in the global economy. In particular, there is a high degree of labour and capital mobility. Significant investments in training and education have allowed labour to adjust and become more mobile. This has played a large part in enabling rapid industrialisation and in shifting to higher value added activities. Capital has also shown greater mobility, expanding the potential for the economy to adjust. Malaysia has also actively identified and develop new sources of growth, leveraging on its resource advantages and new technologies to move up the value chain. There have also been greater moves toward removing rigidities and transitioning toward greater market orientation and competition. Turning now to monetary policy, Bank Negara Malaysia's determination of interest rate policy is based on the requirements of the domestic economy.

Tonight all of us here would like to pay tribute to your work since you became Lord Mayor, and to thank both the Lady Mayoress and yourself for the splendid hospitality which you have extended to us all this evening. So I invite you all to rise and join me in the traditional toast of good health and prosperity to "The Lord Mayor and the Lady Mayoress, David and Theresa Lewis". BIS Review 79/2008  3
These actions enabled families to rebuild their financial reserves – precautionary funds that could be used in the event of a job loss or illness – to maintain their consumption and keep up with their mortgage payments. But to save more, it also means that they had to consume less, which dampened economic activity further. Interestingly, student loans are the only part of household debt that continued to rise throughout the crisis. More families and students may have needed to rely on loans to fund education during the difficult times. And going to school was more attractive for some, given the deterioration in labor market conditions. Just as households began deleveraging during the crisis, banks needed to respond in light of the large loan losses that they were taking. As defaults rose, banks tightened their underwriting standards and raised the margins that they charged on loans. As a consequence, they made fewer loans. This tightening of credit availability exacerbated the decline in real activity. It created an “adverse feedback loop” between the financial and real sectors of the economy that deepened the recession. Where are we now? There are several signs that we are now convalescing; this damaging dynamic – the adverse feedback loop – now appears to be reversing. From historical experience with financial crises we know that this phase is a gradual transition process – not a quick event – as households and banks slowly complete their painful adjustments.

However, some argue that monetary policy should react directly to asset prices, for example by including them in the Taylor rule. Cecchetti et al. (2000) are perhaps the best representatives of this position, claiming that any inflation-targeting central bank should react to asset price misalignments beyond their implications on expected inflation over the policy horizon. In my view, there are three reasons why monetary policy, in general, should not react to asset prices beyond their impact on projected inflation. First, it is not clear that an increase in interest rates will be capable of stopping an increase in asset prices. The required adjustments might be so large that they could end up unnecessarily generating high unemployment and an unwelcome drop in inflation. Second, what matters here is to safeguard the stability of the financial system. An excessive interest rate aiming at controlling asset prices could even trigger financial instability, which is precisely what it is meant to avoid, especially if the increase in asset prices is accompanied by higher financial fragility. Finally, under inflation targeting, any interest rate movements that are inconsistent with inflation converging to the target may undermine the credibility of monetary policy, and we know inflation expectations are critical in the functioning of the regime. To apply a policy that is inconsistent with the inflation target would end up weakening it as the inflation anchor. This is particularly important in the case of emerging economies with a shorter record of monetary stability.
Similarly, the Appointed Overseas Office framework which was expanded in 2017 has facilitated wider access to the Malaysian market. The launch of the AOO pilot programme in August this year has further enhanced market liquidity and reduced transaction costs for larger volume transactions by allowing inter-AOO squaring of positions for more efficient price discovery. With 168 AOOs from 22 banking groups operating in 36 countries, market access to the onshore Malaysian markets continues to grow. To meet the need for continuous communications with investors, market participants and intermediaries alike, the Bank developed dedicated webpages for investors interested in the developments of the Malaysian financial market. There are continuous updates on what is new in our markets, and important updates on Foreign Exchange Administration rules that market participants may use as a point of reference in their ringgit dealings. Many of these initiatives focus on increasing efficiency, access and transparency. However, the reality is that markets will always be imperfect. In the 1970s through to the 1990s, we were told that financial markets can be relied upon to be efficient, that prices will reflect all available public information and hence appropriately reflect the fundamentals of an instrument or asset. Regulators were asked to leave markets alone. Liberalisation and deregulation were the two key themes and policy push on emerging markets that would enable the development of liquid financial markets. Then in the 1990s, the Asian Financial Crisis happened. Together with liberalisation and deregulation came excessive speculation and destabilising capital flows.

The question we ask is whether this levelling off is permanent or whether we may expect a further reduction in the use of cash. Let me briefly outline three factors I believe may be of some significance: First, it has become less expensive to use cash in the 1990s. Cash is not an interest-bearing instrument. As such, forfeited interest income is part of the “cost” of using cash. A declining interest rate in the 1990s has substantially reduced this cost, both for the public and banks. Second, the public has been spared the real costs of cash use, while other payment instruments have increasingly been assigned full-cost prices. And third, developments in new payment instruments for small payments - cash cards - have progressed slowly. This is probably in part because we already have a well-developed EFTPOS infrastructure in Norway, and perhaps in part related to what I mentioned above - that cash continues to be an efficient and inexpensive alternative. 7  EFTPOS= electronic funds transfer at the point of sale. 7  BIS Review 7/2000  Predicting further developments in the use of banknotes and coin, both internationally and in Norway, is a difficult task. Low inflation, low interest rates and greater access - for example, via the EFTPOS system’s cash-back arrangement - will promote the further use of cash, whereas new technological solutions will reduce it. Developments in relative prices will also be of importance.
But the investor base for any particular issue will be that much larger if secondary market liquidity is assured. The significance of developing domestic debt markets has been widely recognised elsewhere in this region too. It is perhaps something that is of special importance for countries where there is a clear advantage in expanding domestic financial intermediation in order to reduce dependence on external debt. Hong Kong has contributed to the APEC Compendium of Sound Practices for the development of debt markets, which covers such topics as regulation, transparency, risk control and so on. This will help guide the establishment of best-practice infrastructure for these markets, but that in itself is no guarantee that markets will actually mature. In general, however, the prospects for the further development of bond markets in the region in the new millennium look promising. From the point of view of international investors, exchange rates may also, of course, be a crucial element of the investment equation. They are certainly so for the trader or short-term investor. For long-term investors, however, the swings and roundabouts may even out; it could be argued that much of the movement of exchange rates reflects nominal impulses, which should not unduly affect long-run real returns. If one tries to predict exchange rates in pursuit of a winning investment strategy, one is likely to be as often disappointed as elated.

Much has been written of late as to whether costs in Hong Kong are too high. Let me ask you to reflect on the following. Cities such as London and New York have a reputation for being expensive. So also do of a number of capital cities in former communist countries. In a very general sense one can say that London and New York are expensive as a consequence of success as business centres and because, presumably, people still feel that there is value for money there. I leave you to judge whether the others would fit that description; to my understanding, some of them have become expensive for rather different and less palatable reasons. I strongly believe that Hong Kong fits the London-New York paradigm. Actually, our competitiveness (as measured by the real effective exchange rate) is now back where it was in mid-1997 before the onset of the Asian crisis, thanks to the sharp adjustment of property prices and reductions in labour costs, and with help from a strengthening of other currencies, notably the yen. Nevertheless, although costs may now be back closer to their norm, Hong Kong will never be a cheap place. But when you take account of what is on offer here and the high productivity of the labour force, I hope you will agree that you get value for money.
Alex Brazier: Nurturing resilience to the financial cycle Speech by Mr Alex Brazier, Executive Director for Financial Stability Strategy and Risk of the Bank of England, at the Property Investor’s Banquet, London, 19 October 2015. *  *  *  I am grateful to Martin Arrowsmith, Oliver Burrows, Neil Crosby, Kishore Kamath, Magda Rutkowska and Robert Sturrock for their assistance in preparing these remarks. My Lord Mayor, Lady Mayoress, Ladies and Gentlemen. It is a great honour to join you this evening. It’s clear why you are celebrating. A crane-filled skyline to the City. New office space completion in Central London: a ten-year high; More than thirty schemes underway: a twenty-year high; And transactions that are near a record high. Half of them financed by capital attracted from overseas. Commercial property is punching well above its weight in attracting capital to Britain. Those capital inflows are helping to sustain steady growth while our major trading partners lag behind. So your industry is contributing to the livelihoods of people up and down the country. But while that’s true in the good times, it’s true in the bad times too: when commercial real estate catches a cold, the whole economy starts to shiver. It’s not just that the construction industry suffers and jobs are lost, or that banks are injured, impairing their lending to the rest of the economy. It’s that small businesses see their own property fall in value – assets that are vital to secure their borrowing.

Luis M Linde: Brief review of recent developments in the Spanish economy Testimony by Mr Luis M Linde, Governor of the Bank of Spain, before the Senate Budget Committee in connection with the draft State Budget for 2013, Madrid, 21 November 2012. *  *  *  Ladies and gentlemen, This is the first time I am following the tradition of the Governor of the Banco de España in giving testimony to this House as part of the debate on the State Budget. It is a pleasure to do so. The Budget is being debated this year in a national and international economic context beset by difficulties. Consequently, before analysing fundamental aspects of the Budget, I think it is appropriate to briefly review some of the most significant recent developments in the Spanish economy. I will confine my comments to those developments I consider most important for the debate on this draft law. The international setting and the euro area In the current circumstances, marked by the need to complete a series of difficult adjustments, the Spanish economy’s ability to recover is heavily conditioned by the fragile external setting. On the most recent projections of the main international organisations and most private analysts, the euro area’s gross domestic product – and, therefore, the imports of our main economic partners – will hardly grow next year.
Under the said assumption, output gap becomes clearly negative as of the third quarter of 2006 and the contribution of demand conditions to falling inflation increases. According to the projections produced under such conditions, inflation drops rapidly compared to the previous scenario and is realized between a 1.9 4.5 percent by the third quarter of 2007. Thus, the possibility of inflation falling evidently under the path consistent with the target increases (Graph 26). Risk elements Distinguished Participants, It should be emphasized once more that the forecasts that I have presented were produced under a main scenario, which was developed on the basis of the above-mentioned assumptions and shortterm outlook in the light of current data. In the event of a possible threat to the medium-term inflation outlook by risk elements, the Central Bank will review both its forecasts and the stance of monetary policy towards the future. Distinguished Guests, In the final part of my speech, I would like to touch on the risks in question. Uncertainties about the course of oil prices are the leading risk element with respect to the achievement of the inflation target in the coming period. In the forecasts produced in the previous Inflation Report, oil prices were assumed unchanged. However, these prices persisted to rise throughout this period and reached high levels in recent times. The unfavorable impact of oil prices on  BIS Review 67/2006  19  annual inflation became one of the factors that slowed down the decline in inflation expectations in the first quarter of 2006.

Criterion 2, which states that for given inflation developments, the loss Lt will increase with fluctuations in economic activity, is covered by the first and second segments. Criterion 3, which states that monetary policy shall be robust, is covered by the second, third and fourth segments. The adjustments made in March were expressed by slightly increasing the weight given to the output gap, , because financial imbalances can often build up in periods of high capacity utilisation. At the same time, weight was given to avoiding substantial deviations in the interest rate from a normal level. This consideration is expressed in the final segment in the loss function. This can help to mitigate the risk of a buildup of financial imbalances, even in periods when capacity utilisation is not particularly high. Chart: Key policy rate Normally, the key policy rate cannot achieve several objectives simultaneously. In the case of conflicting objectives, the choice of interest rate path will involve a trade-off between different considerations. If monetary policy only took into account the low level of inflation, the key policy rate would be rapidly reduced and kept close to zero for a good while. Inflation might then pick up faster, partly as a result of a weaker krone. In the light of the trade-off against other considerations, however, the Bank does not want to accelerate the pace of inflation. The result would be a pronounced impact on output and employment.
I envisage that, under this framework, industry practitioners can take different courses provided by professional bodies such as HKIB, HKSI, Treasury Markets Association and other tertiary institutions, and ultimately acquire a professional qualification that is widely recognised and accredited in Hong Kong and beyond. We in the HKMA will be pleased to work with the private banking industry and other stakeholders to ensure that Hong Kong has a large pool of talents with world class technical competence and professionalism. Conclusion Ladies and gentlemen, I would like to conclude my remarks today by posing the following three questions. First, what are the prospects for Hong Kong to develop into the premier private banking hub in Asia? The answer is clear. As Hong Kong possesses key and unique competitive advantages in serving rapidly increasing number of wealthy population in China and the rest of Asia, there will be exceptionally huge business opportunities and potential for our private banking industry. Second, does Hong Kong presently have an appropriate regulatory framework that can help sustain a healthy development of the private banking industry in the long run? The answer is “yes”, but I need to qualify the answer because I am acutely aware that no regulatory  4  BIS central bankers’ speeches  framework is perfect and can afford to remain static, bearing in mind the ever changing market conditions and evolving expectations of the society on investor protection.

These processes not only help to fight money laundering and the financing of terrorism, but also enable private banks to obtain relevant information to better understand their clients, including their background and, most importantly, their risk appetite and investment needs. By doing so, private banks can agree on an investment strategy with clients and provide suitable products and services that fit their needs. 2  BIS central bankers’ speeches  As we all know, private banking clients cover a wide spectrum of individuals. At one end of the spectrum there are clients who are highly seasoned investors, at the other end there may be unsophisticated clients with only very basic investment knowledge, notwithstanding that they have substantial wealth. While our regulatory framework is aimed at providing appropriate investor protection to all clients, regardless of the size of their wealth, it does not mean all investors have to be treated in exactly the same way in the process of making investments. In other words, the HKMA agrees that private banking and retail banking clients can and should be treated differently in the investment process. This being the case, we need to have a clear and practical definition of “Private Banking Customer”. After consulting the industry and the SFC, the HKMA is minded to agree that a “Private Banking Customer” can be defined as a customer with either (a) at least $ million of assets under the management (AUM) with the bank concerned or (b) total investable assets of at least $ million.