samchain/econo-pairs-v1 huggingface dataset:
This development has been supported by the development of the derivatives market, in which Pension Funds have been key counterparts as well. Banking regulation, in turn, have result in limited currency mismatches at the bank level, which have made the introduction of new regulation to deal with FX risk unnecessary, as we have observed in many emerging market economies after the Global Financial Crisis (GFC). While may be true that other emerging economies have been increasingly active in the implementation of CBM in their banking systems, in Chile, we have followed a different approach to deal with FX risk at the banking level. This approach has been mainly characterized by limiting banks’ direct FX-currency exposure (limited currency mismatches) as part of our overall capital requirements for market risk purposes. Also, by acknowledging the potential indirect FX risk through the credit provisioning requirements. In fact, in Chile, the main regulatory changes introduced has been the recent modification of the General Banking Law (GBL), which constitutes a major step forward for the local banking industry, in that it will contribute to reducing the gap with international regulatory standards established under Basel III. The new regulatory  Page 2 of 12  Central Bank of Chile September 2019  framework raises important challenges for the industry in terms of compliance with the new, more demanding solvency requirements, especially for entities with a smaller capital cushion. High-level Policy Seminar on Integration or Fragmentation?

Well-trained directors can be firm hands in steering companies through pitfalls which may appear. In such an uncertain environment, it will be critical to reinforce the confidence of stakeholders in how our companies are run. This will require both the government and the private sector to play our part. 6. On the regulators’ end, we will continue to make sensible rules that are practical and outcome focused. We will also continue to keep our rules up to date. The Corporate Governance Council, established by MAS, is reviewing the Singapore Code of Corporate Governance and will submit its recommendations to MAS. On its part, the private sector must nurture a pool of well-trained and ethical directors. 7. Being a director will become increasingly demanding. Companies’ operations are getting more international, and the markets for raising capital becoming more complex. Expectations of directors by stakeholders are also growing. 8. Directors are now exposed to substantial legal and reputational risk if they do not, or are perceived not to have, discharged their fiduciary duties for the company. For example, directors of BP have been sued by shareholders over the costs associated with the oil spill in the Gulf of Mexico. Directors of AIG were also sued for not adequately monitoring the firm’s exposure to the subprime mortgage market. BIS Review 164/2010  1  9. Directors should not become defensive or legalistic in face of these challenges.
The significance of these achievements can be demonstrated by the resilience shown by the accession countries to the Asian and Russian crises in 1997-1998 and, more recently, to the adverse developments in Argentina and other emerging market economies. However, a number of important challenges remain. The years to come will be crucial to ensure that the current significant momentum of the accession process is maintained, and that the remaining difficulties are dealt with effectively in order to permit the smooth integration of accession countries into the EU and, later on, into the euro area. The forthcoming enlargement of the EU will, no doubt, increase the diversity and complexity within the Union in an unprecedented way. In economic terms, the discrepancies in real per capita income and price levels between the accession countries and the euro area are of a magnitude that has never been observed in previous enlargement rounds. In this regard, however, it should be borne in mind that the combined GDP of all the accession countries accounts for only around 5% of that of the EU. The enlargement also confronts European policy-makers with enormous challenges in political and institutional terms. The sheer increase in the number of Member States that the current enlargement represents renders the functioning of decision-making bodies more difficult. As we all know, substantial institutional reforms are needed to ensure that the EU can continue to function effectively after enlargement.

Instead, it should be regarded as a meaningful and flexible framework for increasing nominal and real convergence with the euro area, and for tackling the challenges faced by the accession countries as they progress towards the adoption of the euro. Indeed, the experience of current euro area member countries in the fields of inflation and exchange rate developments strongly suggests that the existing institutional framework for accession to the euro area, including the convergence criteria as defined in the Maastricht Treaty, is sound. Furthermore, this framework should be sufficiently flexible to accommodate most of the challenges that accession countries will face on their path to the eventual adoption of the euro. 4. Capital account liberalisation  Ladies and gentlemen, the fourth economic issue I would like to refer to is capital account liberalisation. In several accession countries, capital movements are still subject to a number of restrictions. The most relevant restrictions, from a monetary policy perspective, apply to short-term portfolio investments. Although transitional periods may be allowed under the Treaty in the early years of EU membership, as well as prior to accession under the Europe Agreements, thus far, only a few countries have requested them. In those few cases, transitional periods mainly relate to areas that are not particularly relevant from a monetary policy point of view (e.g. real estate purchases).
An issue touched on earlier in the day was reporting and accounting, and one of the things the industry has done is to come up with something called the Enhanced Disclosure 2  BIS central bankers’ speeches  Task Force. The Taskforce proposed a set of recommendations for banks to develop highquality, transparent disclosures that clearly communicate banks’ business models and the key risks that arise from them, so that people who supply capital to the banks can follow how they make money, how they think about managing risk, and make judgments on the basis of that. The important point was that this was industry-led, and co-chaired by a London-based bank. There was some input from the authorities, but the industry led the initiative, and it’s a model we may use in other areas of finance. I mentioned Total Loss Absorbing Capacity earlier – I won’t use the acronym! I’m aware the full name doesn’t necessarily make it any more intelligible, but this is basically another layer of capital, and the ability to absorb losses in the event that a firm fails. It is more cost effective – so the cost is not passed on to borrowers. And the technology behind this was developed by the private sector, with the authorities contributing to ensure it could work effectively and on a global basis. But it was the industry, once again, that came up with the solution.

A major infrastructure issue for the Treasury market has been the clearing and settlement practices of the cash market. This can be opaque, with a majority of trades cleared away from central counterparties (CCPs). While central clearing is more uniformly used in other segments of the Treasury market—such as futures—many market participants elect to clear and settle cash Treasury transactions in a bilateral fashion. This process includes many market participants: trading venues, clearing agents, and clearing banks. No single participant has a view of the entire clearing and settlement system. The Treasury Market Practices Group (TMPG), a New York Fed-sponsored group of market professionals working to support the integrity and efficiency of the Treasury market, has concentrated its recent efforts on this topic. Preliminary findings include an increasing volume of linked trades that clear centrally on one side and bilaterally on the other. This work has also uncovered information asymmetries in clearance and settlement risk management, which potentially could lead to a mispricing of these risks. Moreover, increased understanding about the depth, breadth, and durability of credit arrangements that support clearance and settlement seems desirable. This would improve market integrity through greater understanding of risk throughout the clearing and settlement process and how it is affected by different conditions. Since the financial crisis, there has been an effort to strengthen the resiliency of repo market infrastructure, which is another important element of Treasury market plumbing.
At the end of 2015, in Bulgaria the share of SEPA credit transfers in the total number of customers’ credit transfer orders in euro was 59%, and the migration to the EMV standard for bank payment cards and POS terminals is over 90% and is nearly complete. • With effect from 1 February 2016, Member States must remove settlement-based national reporting obligations on payment service providers for balance of payments statistics relating to payment transactions of their customers. Soon the National Assembly is going to pass amendments to the Currency Law, introduced with the Law on consumers’ real estate loans, and the related changes are going to be made to Ordinance No.27 on the balance of payment statistics. Therefore, payment service providers will no longer be required, for the needs of the balance of payments statistics, to keep registers and provide the BNB with information on transactions and payments between residents and non-residents and on  BIS central bankers’ speeches  1  cross-border transfers of over BGN 100 000. We expect that these changes would be passed by the end of July this year. • In relation to the agreement reached between the MoF, BNB and market participants, the BNB as the fiscal agent of the government works on a project for the technical implementation of direct connection of the Government Securities Depository with the EBOND system to the BLOOMBERG PROFESSIONAL platform and the system of the Bulgarian Stock Exchange.

5 This reduces the return potential of investments and hence also the demand for capital to finance investments. The real rate of interest had to fall in order to balance supply and demand on the capital market. Negative interest – still essential from a monetary policy perspective The decline in long-term interest rates also has implications for monetary policy and thus for short-term rates. What is known as the ‘neutral rate of interest’, i.e. the rate at which monetary policy neither holds back nor stimulates the economy under conditions of price stability, is also lower than it used to be. To achieve the same degree of monetary policy expansion in these circumstances, short-term interest rates must therefore also be lower now. This is one of the reasons why many central banks lowered their policy rates to zero or even into negative territory in the financial and debt crisis. It was because of this that the SNB, too, introduced a negative rate of interest on the sight deposits that banks hold with it. We are aware that the negative interest rate is an unconventional instrument, and one that has side effects. That is why we subject the benefits of this instrument for monetary policy, as well as any resulting costs, to particular scrutiny. We will only maintain the negative interest rate for as long as the benefits outweigh the costs. We undertook the most recent evaluation during our September monetary policy assessment.
The picture for the petroleum and offshore supply industry is mixed. Operators’ production of oil and gas is high. Some sectors of the offshore supply industry experienced a difficult fourth quarter, but are more optimistic about this year. The maintenance and modification market is showing steady, although moderate, growth. Most companies report stable employment. Extensive rationalisation and restructuring measures are still on the agenda in organisations and enterprises, and so far, growth is being absorbed by excess capacity or by increased productivity. Wholesale and retail trade and the building and construction sectors are increasing their workforces. All industries continue to report that highly qualified labour is in ample supply. Of the Norwegian counties exporting traditional goods, Rogaland is the third largest. The public sector and some private service industries are as important for employment in Rogaland as they are in the rest of Norway, but the share of employment in these sectors is lower than the national average. Manufacturing and oil and gas production are important in Rogaland, but the internationally exposed sector is also relatively large. Employment in Rogaland is mainly concentrated in engineering, shipbuilding and construction of oil platforms. Many are also employed in the food and beverage industry, and Rogaland is an important farming county. The labour market in Norway has improved. The number of persons employed in Norway began to increase in summer 2003 and unemployment stabilised. Employment in distributive trades has increased.

Projections The central scenario projections contain limited changes with respect to the March Report. Inflation is expected to continue to fall and will converge to the target within the second half of 2024. For December of this year, the annual variation of total CPI is foreseen at 4.2%, compared with the March estimate of 4.6%. Core inflation will end 2023 at 6.5%, which compares with the 6.9% projected in March. Both indicators will converge to 3% during 2024 and will remain in the neighborhood until the end of the policy horizon, that is, the second quarter of 2025 (figure 16). Core inflation will decline more noticeably towards the end of 2023 and the beginning of 2024, as anticipated in the March Report. The projections reiterate that, in the short term, the monthly variation of services inflation will continue to exceed its historical averages. This incorporates the greater rigidities that these prices normally present and the impact of the still-high inflation on the usual repricing mechanisms. Goods inflation, meanwhile, will benefit from a lower than expected trajectory of the real exchange rate (RER) in March. This is consistent with the nominal appreciation of the peso in recent months, in a context where, as I mentioned, local uncertainty has diminished. Looking ahead, the effect of tight external financial conditions continues to be considered. Compared to March, activity projections show minor changes, mainly associated with the mining industry. This year, the annual variation of GDP will be between a 0.5% fall and a 0.25% rise.
2  BIS Review 35/2006  Globalisation involves both challenges and opportunities The increasing competition from, for instance, China, India and eastern Europe means that there is increasing pressure on the early industrialised nations to transform their trade and industry structure. This structural transformation will affect people, places and regions in different ways. However, history shows that free trade and increased economic integration lead to increased economic welfare for the world as a whole. The international division of labour that follows in the wake of globalisation leads to lower production costs and productivity gains, which in turn means that labour and investment in the industrialised nations can be moved to other sectors with more refined products and services. In that sectors and companies that are not internationally competitive are knocked out, scope is created for new employment in areas where different countries and regions have comparative advantages. However, for an individual country or region to benefit in this process, the “creative destruction” entailed in the structural transformation must lead to new jobs with a higher value added factor being created at the same rate as the old ones disappear. Effects on the labour market China’s and India’s integration into the world economy is sometimes described in the debate as a supply shock in the global labour market, which will result in rapidly-falling wages in the western world.

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Small open economies in particular have always needed to keep their currencies relevant domestically to preserve monetary autonomy. The benefits of an independent monetary policy have to be weighed against the efficiency gains from adopting a more widely used currency. Pegging to the US Dollar, the Euro or even a Synthetic Hegemonic Currency is one thing; losing monetary sovereignty to a currency that is the liability of a private entity is another. To sum up, money must ultimately be trusted if it is to fulfil its function in the economy. As public institutions which have built up credibility over time, central banks are best placed to safeguard the trust that underpins sound money and safe payments. This trust is not just about money that is safe, but also about a monetary system that is dynamic and purposeful. As Mark has emphasised, it must continually improve how it serves the people who depend on it daily. The key question on the future of money is this: what is the appropriate division of labour between the public and private sector? There is a continuum that spans, at one extreme, a completely centralised system where there is only central bank money, and at the other extreme a decentralised system where there are only private monies in circulation. Each country will have to choose different positions along the continuum, given its own cultural norms, social compact, and institutional structures.

John C Williams: The economic outlook Remarks by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Foreign Policy Association, New York City, 5 March 2020. * * * As prepared for delivery Thank you so much for this award. It’s a genuine honor to be recognized in this way. And allow me to add my congratulations to all the other organizations and individuals that have been commended this evening. The work that you’re doing—particularly in the area of corporate social responsibility—is so important. On Tuesday, the Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate by 1/2 percentage point.1 This action was in response to the evolving risks the coronavirus poses to the U.S. economy. Tonight, I’ll use my remarks to provide more context around that decision and about our response as we look ahead. But before I give this evening’s remarks I need to give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee or others in the Federal Reserve System. Economic Outlook To start, let me emphasize that the fundamentals of the U.S. economy remain strong. We’ve seen continued solid job growth, unemployment is at a historically low level, and we entered 2020 with very good momentum. After a year that was characterized by uncertainties, global growth appeared to be stabilizing, and geopolitical risks receding.
The second dimension is RMB trade settlement. The RMB trade settlement pilot scheme was introduced in July last year. The initial scope of the scheme was rather limited. But in less than a year, the pilot scheme was already expanded to cover enterprises in 20 provinces and cities on the Mainland, and their trade transactions with any parts of the world can now be settled in RMB. The expanded scope has led to a rapid growth in the transaction volume of RMB trade settlement in Hong Kong, which was increased from a monthly average of 4.5 billion yuan in the first half of this year, to more than 26 billion yuan in the third quarter, representing an almost six-fold increase during the period. 23. To date, more than 75% of Mainland’s RMB trade transactions with the world are handled by banks in Hong Kong. This clearly demonstrates the strong preference of market players for making use of Hong Kong’s platform for RMB trade settlement. The highly efficient and reliable RMB Real Time Gross Settlement (RTGS) system in Hong Kong has played a significant role here. We are the first and so far the only place outside Mainland China that has developed a full-fledged RMB RTGS system, enabling us to handle the  BIS Review 153/2010  3  settlement of cross-border trade between the Mainland and other economies in a safe and efficient manner. 24.

It will be equally  2  BIS Review 110/2007  important, in both the private and public sectors, for wage growth to be compatible with productivity growth, labour market conditions and cost developments in competitor countries. The further strengthening of competition in both product and resource markets and the creation of more incentives to work are also necessary in order to raise the participation rate. It also needs to be realized that these reforms are essential for safeguarding our social model. In recent decades we have been successful in reducing income inequality and in securing universal access to all levels of education, to health care and to pensions. These benefits, however, can only continue to be enjoyed by future generations if today’s generation implements the necessary reforms. The next phase in Malta’s economic history, therefore, promises to be a challenging one, but it should also be an exciting time. For a country with a population of 400,000 and a GDP of just four-and-a-half billion euro, having a major reserve unit as its domestic currency is indeed a significant advantage. We thus have good reason to feel encouraged and, as a people that has suffered repeatedly as a consequence of divisions on the European mainland, also reassured that we are about to reinforce our integration in Europe with full economic and monetary union.