samchain/econo-pairs-v1 huggingface dataset:
Unlike Desk operations conducted with fixed quantities, the Desk wouldn’t need to estimate the appropriate amount of reverse repos to offer each day in order to absorb the quantity of reserve balances at the target rate.16 With IOER and an overnight, fixed-rate, full-allotment reverse repo facility, counterparties would determine the level of participation based on daily demand for overnight investments at a fixed rate that’s judged consistent with the FOMC’s overall policy stance. Market forces will therefore determine how to allocate the Federal Reserve’s liabilities between depository institutions holding them as reserves and money market funds, GSEs, and other non-bank financial institutions holding them as reverse repos. The effectiveness of an overnight, fixed-rate, full-allotment facility in helping to control overnight money market rates will depend on a range of factors, including whether a sufficiently wide set of non-bank counterparties has access to the facility. Following seven waves of counterparty expansions since 2009, the Desk currently has 139 reverse repo counterparties, covering 94 of the largest 2a-7 money market funds, 6 GSEs, 18 banks, and the 21 primary dealers. Taken together, these institutions represent an estimated 25 percent of all overnight Treasury tri-party repo volume. More counterparties could certainly be added, and we’re in the process of considering how best to proceed. The efficacy of the facility will also depend on factors such as the regulatory and balance sheet constraints of counterparties and the level of competition in the markets.

However, the facility’s value in terms of monetary policy implementation wouldn’t necessarily be determined by the amount of usage. If the facility increases bargaining power for market participants, it could conceivably provide an effective floor for short-term rates, giving the Desk tighter control of money market conditions even with usage of the facility that’s low on average. At its September 2013 meeting, the FOMC unanimously approved a resolution that allowed the Desk to start an operational test of fixed-rate, overnight reverse repos.17 The exercise, which began on September 23 and is authorized to run until January 29, 2014, entails the conduct of a daily overnight, fixed-rate reverse repo auction in order to assess operational readiness to carry out such transactions. It therefore allows the Desk, its wide range of counterparties, and the tri-party clearing banks to utilize and fine-tune their procedures for end-to-end processing of trades, from posting of the rate to running operations, moving cash and collateral, unwinding the trade, and integrating information with accounting systems. Like other technical exercises, this one isn’t intended to materially affect the current level of shortterm interest rates. Accordingly, for the purposes of the exercise, each counterparty’s participation is capped.
If all this happened without anyone consciously or deliberately “positioning” the Management Accountant in that role, what is the need to “re-position” the management accountant now? Now that some re-positioning has already taken place, albeit accidentally, need we do more? Should we let the status quo remain? Why should we tinker with the Management Accountant now? By the time we do that, would the goal posts have shifted due to the rapid developments that are always taking place? To answer these questions, we may need to take a long hard look at the future of the global business environment over the next 10 years. What do we see? We see •  new developments: tremendous change and a rapid rate of changing;  •  blurring of traditional roles: different people doing old jobs; new people doing new jobs;  •  new skills and multi-disciplinary teams at work;  •  status quo being challenged all the time and impermanence becoming a feature;  •  volatility becoming a given fact and chaos being the order of the day; eg: subprimes, $ per barrel of oil, Global terrorism, etc. etc. BIS Review 10/2008  1  In that scenario, Management Accountants would need to be consciously trained to deal with, and manage emerging new issues and risks, in addition to the normal duties undertaken by the typical Accountant. How will all this affect the Management Accountant? It is likely that even in this turbulent scenario, the core-training of the Management Accountant may still be relevant.

A single failure of a high magnitude eliminates massive and hard-earned gains made over many years. That is why performance is so vital and important. It is therefore timely that the Management Accountants are focusing on the re-positioning of the profession. It is wise that you are talking about how to project yourselves and promote yourselves in the future. It is refreshing that you are talking with your stakeholders and then planning your repositioning, because the relevance of your position is of paramount importance, if you are to survive and thrive. My learning as a Chartered Accountant as well as a Management Accountant helped me a great deal in my activities and in my performance over the years. I believe my own successes can be traced to the roots of such learning, education, and training. Like me, I am sure we have all benefited immensely by the initial training and guidance we have received from our respective institutes. Let us now build on those foundations and strengths and move forward with confidence and certainty even in the midst of tremendous challenges and competition. I am sure our profession, notwithstanding the numerous changes that are taking place, would remain relevant to the business and commercial world. We owe it to our respective economies to keep it that way. I congratulate all of you for the interest you are taking and the contribution you are making. I wish you all success and prosperity. BIS Review 10/2008  3
Obviously, Macedonian companies are still profitable and they financially help their parent companies in the troubled Euro area countries. It negatively influences the deposit potential of companies. It is uncertain whether this trend will continue next year. Why do you always connect the issue of the exchange rate policy with devaluation? Is it possible to open a debate in the country, on the economic model, the effects that it provides and the exchange rate regime and its efficiency vis-a-vis the economy? Currently, we have a real exchange rate of the Denar. Demand and supply are balanced. NBRM very rarely intervenes in the foreign exchange market. As a result of the credibility of the Denar and the National Bank created over the past 15 years, we have completely eliminated the speculative demand for foreign exchange. But experience has shown that immediately when the change in the exchange rate is mentioned, a speculative demand for foreign exchange appears and disturbs the balance on the foreign exchange market. This would cause pressure on the exchange rate, higher inflation and ultimately much higher interest rates than the current ones. Who would benefit from that? You take a selected sample of countries with flexible exchange rate that have higher economic growth than Macedonia and you offer it as evidence that such policy gives better results. I will find another sample of countries with flexible exchange rate that have lower growth than Macedonia. It is not economic analysis, it is manipulation.

More importantly, it is to avert a sharp slowdown in economic activities. Financial liberalisation Bank Negara Malaysia has also remained committed to the objectives of the Financial Sector Master Plan (FSMP) issued in 2001. The recently announced liberalization measures, for example, forms part of the concluding phase of the FSMP which is to liberalise the banking sector by allowing for the increase in operational flexibilities, product offering and, the issuance of new licenses by 2011. But, as capacity and institutional building efforts continue to be pursued, it must be complemented by enhancements in regulatory, supervisory and surveillance framework to preserve the integrity and resilience of the financial system. Clearly this is the distinction which must be made with de-regularisation per se. Islamic banking Islamic banking also remains as one of the key agendas under the FSMP. Also in the recently announced liberalisation measures, we will issue up to two new licenses given the growing demand and the need to give further boost to the MIFC initiative. As we have more than two decades of experience in this area, Bank Negara Malaysia will continue to build on this competitive advantage to ensure Malaysia remains at the forefront of global Islamic banking. It is therefore encouraging to note that Islamic finance has continued to demonstrate its evolution and strong growth as assets have expanded by 22% to RM192 billion in 2008 alone and now accounts for 15.0% of the total assets in the industry.
There has been a lot of discussion among economists about the current slowdown in productivity and the threat, as some see it, of a “secular stagnation”. Personally, I think that expression is going too far, and you here stand in proof. But for an economy to be competitive and to grow, it needs to increase innovation and its diffusion, not slow it down. The digitalisation of the financial sector can accelerate this positive process: it helps to disseminate technological advances such as electronic signatures, solutions to defend against cyber-attacks or distributed ledger technologies. Innovative and secure payment solutions, such as tomorrow’s blockchains, are also helping to speed up the development of e-commerce and modernise physical trade. Achieving this will require greater harmonisation at European level: in the precise application of the texts governing the financial industry (definition and security of payment services), in more recent fields (crowd-funding) or in the search for greater interoperability of technologies and standards. But, above all, it is vital that we define an overall strategy for European innovation in financial services. This strategy must cover all the issues raised by digital finance: from data protection to the fight against money laundering; from IT security to consumer protection; from financial stability to the social challenges of banking inclusion; from financial literacy to changes in jobs in the financial sector. It is a project currently being conducted by the European Commission. And the Banque de France and ACPR are both playing a part.

Petra Geraats argues that it is important not to delay policy decisions that are not expected by the market just in order to appear predictable. This, she argues, could impair the market’s understanding of the central bank’s reaction pattern and thus reduce predictability in the medium and long run. I fully share Petra’s view. As a general rule, the central bank should do what it considers to be the appropriate thing to do in a given economic situation. Predictability is not a goal in itself. However, one caveat to this rule is that in situations where there is unusually high uncertainty and turmoil in financial markets, it could sometimes be unwise to add more uncertainty through unanticipated policy decisions. In her survey, Petra Geraats points out that transparency can have both information effects and incentive effects. One incentive effect which is not mentioned in the paper, but which I believe is very important in practice, is the effect transparency has on the internal decision process. This effect is difficult to detect for outside observers, but I have observed how transparency has changed the motivation and discipline of the economists within Norges Bank. By publishing our own interest rate forecast, each sector expert will see how his or her judgment might affect policy. Moreover, by following the principle that what is communicated externally should reflect the internal decision process, we need to think extra hard about what we do internally. Transparency makes the public better capable of evaluating the central bank’s analyses and policy assessments.
Short-term deflation risks  To discuss deflation risks in the euro area, it is useful to begin with a definition. Deflation is a decline in the general level of prices as measured by an index of consumer prices. 3 This decline affects most, if not all, prices in the economy. It has to be persistent – and last for an extended period of time, say, at least a year. And it has to be entrenched in agents’ expectations. As the chart (slide 2) indicates, euro area inflation - measured in terms of rate of change of the price level over the previous 12 months - has declined sharply from a peak of 4% in July of last year to 0% in May, the lowest rate since the beginning of Monetary Union. It is widely expected to dip into negative territory this month and is likely to remain there for most of the summer. However, although such rates of inflation are clearly below our definition of price stability, they do not exemplify deflation as we have just defined it. 4 For one thing, this spell of negative inflation is mainly driven by price developments in two sectors, energy and food, and it is the temporary result of the steep rises and sharp falls in oil and food commodity prices last year. Excluding energy and food, there is little sign of widespread price cuts so far; the rate of inflation remains between 1% and 2%. Overall, there are no signs of a generalised reduction in prices.

The opinions reflect only those of the author. 2  In the United States, the debate is well captured by the two editorials that appeared in the New York Times on 4 May 2009: one by Paul Krugman arguing that Japan-style deflation loomed; and the other by Allan Meltzer fearing a return of 1970s inflation: http://www.nytimes.com/2009/05/04/opinion/. See also The Economist of 9 May 2009, page 15. The risk of global deflation has been pointed out in several articles by Nouriel Roubini (www.rgemonitor.com). Inflation risks in Europe and globally were flagged by German Chancellor Angela Merkel in a speech in Berlin on 2 June 2009 (http://www.bundesregierung.de/nn_1498/Content/DE/Rede/2009/06/2009-06-02-merkel-insm.html). BIS Review 81/2009  1  thorough examination of the risks, in much the same way as a disease calls for a sound diagnosis if it is to be properly treated. I will start the discussion by explaining how deflationary risks should be monitored and assessed by central banks, in particular with respect to the current situation. I will then turn to inflation expectations, over the short and medium term, to assess in particular how well they are anchored to the objective of price stability. Then I will consider how monetary and credit aggregates can be of use in the current conditions to assess the balance of risks. I will conclude with the monetary policy actions required to ensure price stability in an environment subject to downward and upward pressures to price stability. 1.
The interest rate reductions during the past year from 4.35% in June 1998 to 2.9% in March this year took place with a view to stimulating demand, increase employment and increase capacity utilisation in order in this way to bring inflation up to the goal of 2%. The Riksbank’s most recent inflation report makes the assessment that there are unused resources in the present situation but that the available resources will gradually be taken into use during the forecast period. The statistics published thereafter give a somewhat fragmented picture but, taken as a whole, do not occasion any change in the view of growth prospects in the economy. The assessment of the Riksbank is now that inflation in 1 to 2 years will be marginally higher than in the most recent inflation reports. In the light of this, the Riksbank made the assessment at its meeting on 11 November to conduct monetary policy in a less expansive direction. The repo rate was therefore increased by 0.35 percentage points to 3.25%. As has been said, the difficult balance to be struck in the present situation is to adjust the instrumental rate at a rate that does not interrupt the upswing in capacity utilisation but does it with sufficient foresight to avoid a drastic rise. We do not want to experience “stop-go” policies again. Let us not forget the late 1980s and early 1990s. That period represents a tragic failure for economic policy, a failure that cost Sweden destruction of both physical and human capital.

Low inflation expectations However, as has been said, it is also important not to increase interest rates too early and thus dampen growth unnecessarily. A difficult question that the Riksbank must take a position on in its assessment of inflationary pressure is whether the relationship between growth and inflation has changed and, in this case, which factors have contributed to this. A concept that has been frequently discussed during the past year is the “new economy”. Discussion has above all centred on the American economy, which now seems to be at the end of a long period of high growth. It seems as if the USA has skipped an entire business cycle. This was in fact also the case in the 1980s. There was an upswing in 1982 and no downturn occurred before 1990-91. However, it is now speculated whether the new technology, IT investments and computerisation have changed transaction costs, management functions and production processes so that the growth in productivity has been durably increased and that growth has therefore been able to increase more quickly without leading to increased inflationary pressure. The hypothesis about the new economy has also been put forward with regard to the Swedish economy. However, it will be first in ten years’ time when researchers have long and many series of data to analyse that we make any more certain pronouncement about the actual situation.
As rates declined in response to a weakening of the economy, the Federal Reserve’s MBS holdings would decline more rapidly, effectively adding to the supply of duration held by the market. 4 This increase in the duration held by the market would tend to damp the decline in yields. With the change in strategy at its August meeting, the FOMC no longer lets its aggregate duration holdings flow back into the market. This approach allows long-term interest rates to adjust fully to a weakening of the economy, which should act to better stabilize the economy. Implementing the reinvestment policy So far, I have focused on the FOMC’s August policy decision; however, you may also be interested in the details of how the Desk has actually implemented the reinvestment policy. The instructions from the FOMC to the Desk, from both the August FOMC statement and the directive that was adopted at that meeting, were to keep the total face value of domestic securities held in the SOMA portfolio near their level at that time. The published size of the securities portfolio just ahead of the August meeting was $ trillion, so the Desk adopted this level as the target for the portfolio. This is a notable development by itself, as the directive from the FOMC now involved two targeted variables – the target range for the federal funds rate, and the target size for its asset holdings. To implement this directive, the Desk has been purchasing Treasury securities on a monthly schedule.

From LIBOR to SONIA: a bridge to the future  Remarks given by Andrew Hauser, Executive Director, Markets At the ‘Is Your Business Prepared for LIBOR?’ webinar 18 September 2020  I am grateful to Stefania Spiga for her help in writing these remarks, and to Amber Evans, Tom Horn, Al Hughes and Alieda Moore for their input and guidance. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  Thank you Phil. It’s great to be with you, and it’s great to have such a fantastic line up to discuss this vital issue for every company in the UK. We’re here today to talk about what it will take to get your business ready to transition away from LIBOR. But I want to start somewhere different. I want to start with a bridge: Hammersmith Bridge in London, to be precise. It’s been around forever. People love it: it can carry over 20,000 vehicles a day. And to the naked eye, it seems in the prime of health: beautiful to look at, safe as houses? Well no, actually: it’s completely unsafe. Below that shining metalwork, there are big and growing cracks – and sooner or later, if nothing is done, someone driving over it is going to fall headfirst into the Thames. So the local council has closed the bridge – it had no choice. But the disruption has been huge. Journeys that used to take a few minutes can now take hours. There are traffic jams everywhere.
The time to liquidate a given position is now seven times as long as in 2008, reflecting much smaller trade sizes in fixed income markets. In part the current liquidity illusion is a product of the risk asymmetries implied by the zero lower bound on interest rates, excess reserves in the system, and perceived central bank reaction functions. However, interest rates in advanced economies won’t remain this low forever. Once the process of normalisation begins or perhaps if market perceptions shift and it is expected to begin, a re-pricing can be expected. The orderliness of that transition is an open question. Certainly, conventional leverage and liquidity cycles – while dampened by reforms – can be expected to operate. High volatility, combined with lower prices, will tighten financing conditions, forcing some asset sales, dampening prices and increasing volatility further. An overshoot is possible. Some have argued there is an additional risk arising from pricing and asset allocations based on an illusion of liquidity. This could lead to “redemption risk” as detailed by Hyun Shin and others.15 Their argument begins with the observation that much of the shift towards market-based finance has been accompanied by an increase in assets under management. We know that almost half of the $ trillion in managed assets globally are in funds that offer their investors redemption at short notice.16 At the same time, funds are investing increasingly in higher-yielding, less liquid assets.

Despite the challenges now facing recent college graduates, I want to assure you that the value of a college degree remains high. While the Great Recession and its aftermath have made it more difficult to find a job out of college these past few years, those without a college degree have had an even tougher time. Students who major in technical fields – such as engineering, mathematics and computer science – have tended to have a much easier time finding a good job and have earned a high return on their educational investment. Although it is true that the labor market has been difficult for college graduates in recent years, I am confident that most of you will find good jobs, especially as the labor market continues to improve. Thank you for your kind attention and I would now be happy to take some questions. BIS central bankers’ speeches  5