samchain/econo-pairs-v1 huggingface dataset:
The role of the central bank in this process is the comfortable one of a knowledgeable observer, posing relevant questions in working groups and committees and pointing out inadequacies in suggested solutions. There is much to say about this process, but I shall have to leave it for a different occasion. 2. Day-to-day oversight  The second strand of financial stability work is the day-to-day oversight. This may be described as resting on three pillars: •  the first pillar is the supervision of individual banks,  •  the second pillar is the surveillance of systemic stability,  •  and the third pillar is payment system oversight. The first pillar is clearly the responsibility of the supervisors, whether they are a separate FSA or, as in many countries, a department within a central bank. The supervisors collect data from the banks, analyse these data and make on-site inspections. Prudential supervision performed by a competent authority must be the basis for all day-to-day oversight. The second pillar is the joint responsibility of the FSA and central bank. The division of responsibility is really one of perspective. While the FSA bases its work on individual institutions, the central bank looks at the banking system as a whole and attempts to assess the risks that could arise in it both in the short and the long run. Of course, there is overlap in the tasks of the FSA and the central bank, but it is often fruitful to approach a problem from somewhat different angles.

Globally interconnected markets have resulted in a situation in which financial institutions everywhere have been hit, even if not exposed to the institutions or assets at the core of the crisis. My home country Sweden is a good example of this. What we have witnessed in recent months, since the default of Lehman Brothers, is the acute phase of a global financial crisis. To respond, authorities have taken action to prevent a systemic break down of the financial system. Both the US and the EU have delivered financial support plans committing governments and central banks to providing the necessary support to the financial industry. BIS Review 134/2008  1  These plans are now being implemented and we cannot yet be certain of their success. However, in my view, the support plans contain the necessary measures to solve the most critical issue right now, namely to restore market confidence by providing guarantees to creditors that their money will be repaid. Therefore, the prospects for restoring financial stability and enhancing the availability of credit for firms and households should be good. That the support plans also provide measures for government capital injections and takeovers is obviously good, but for the purpose of getting markets to function properly ownership issues really are of secondary importance. After all, what creditors are looking for is to get their money back. To them it should not really matter from where or from whom that money comes.
If we have reason to believe that the exchange rate will remain permanently strong or weak, Norges Bank will inform the authorities that measures other than those available to the Bank are required. We note, however, that the present exchange rate level has more or less prevailed for more than 10 years. On the basis of its analyses, Norges Bank does not find grounds for regarding this level as inappropriate. 9. How does the Norwegian regime differ from inflation targeting? Price stability is an important part of long-term exchange rate stability, and the setting of interest rates will often be the same whether the goal is exchange rate or inflation targeting. However, Norwegian monetary policy differs in some respects from monetary policy in countries with an inflation target. •  Norway has a long tradition of cooperation between the political authorities and social partners. Income and wage determination is fairly centralised, and the social partners evaluate the effects of wage outcomes on employment. •  In a number of countries that have switched to a monetary policy regime based on inflation targeting, fiscal policy is oriented towards reducing government debt and deficits. A passive fiscal policy implies that in practice monetary policy assumes a greater role in stabilising the 11  BIS Review 121/1999  economy. In Norway fiscal policy has an important role in demand management. The fulfilment of this task is facilitated by the fact that the Norwegian government has greater financial leeway than most other countries due to its oil revenues.

Developments in the 1970s and 1980s showed that a higher rise in costs in Norway relative to other countries leads to a slacker labour market. This will also be the case this time. 5) Pressures on the exchange rate of commodity-based economies There is a correlation between price inflation and the exchange rate. As mentioned, the exchange rate has a significant influence on prices and costs through its effect on import prices. Furthermore, a precondition for maintaining a stable exchange rate against European countries is that inflation in Norway is over time on a par with the inflation rate prevailing in these countries. The high rise in costs in 1998 was probably the main factor that weakened confidence in the krone. International conditions also played a significant part. In 1998, the world economy was hit by the financial crisis in Asia, Russia and Brazil, falling commodity prices and widespread unrest in international financial markets. The Asian crisis proved to be more serious and prolonged than envisaged, and the contagion effects were more severe than most observers had anticipated. Weaker global demand contributed to a sharp fall in commodity prices, which in turn had a severe impact on commodity-based economies such as Norway, Canada, New Zealand and Australia. For all these countries, the terms of trade worsened and exchange rates depreciated. The Asian crisis also made investors more cautious, with an outflow of investment from countries perceived as risky.
Back office operations, important as they are, can prove distracting in managing a financial institution, where the focus should firmly be on the heart of the institution's business. Outsourcing arrangements can lighten the load of such a burden and these operations can often be performed more effectively and efficiently by skilled outsourcing providers than if performed in-house. Ladies and gentlemen, The essence of a successful outsourcing arrangement rests on the institution's overall strategy. In executing a successful outsourcing strategy, the various risks involved have to be recognised and mitigated. Controls and effective oversight on the external parties have to be put in place to ensure that there is no over-reliance or loss of an institution's control. Clarity on roles and responsibilities is paramount. Outsourcing strategies which maximise rewards and minimise risks can prove invaluable to an institution in enhancing its competitiveness. Therefore, a key to this is to conceptualise the outsourcing approach and early identification of the gains and pains that may arise. Bank Negara Malaysia , in our efforts towards facilitating the development of stronger and more focussed institutions in the financial sector, will endeavour to reconsider any regulatory barriers deemed to be impeding the outsourcing arrangements of banking institutions and insurance companies in the future. Our only wish is that the outsourcing arrangements should not in any way affect stability in the financial system. On that note, I wish you a productive and successful forum. Thank you. 2  BIS Review 133/2007

William C Dudley: Conducting monetary policy – rules, learning and risk management Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the C Peter McColough Series on International Economics, Council on Foreign Relations, New York, 24 May 2012. *  *  *  It is a great pleasure to have the opportunity to speak here today. My remarks will focus on how I think about monetary policy in today’s challenging economic environment. As part of this, I will discuss how simple policy rules might appropriately be used as a guide to decisionmaking. I do this not because policy rules play a dominant role in my own thinking, but because the use of these tools is widespread, with many framing their arguments this way. To start with the punch line, although I believe simple policy rules can provide useful input into the policymaking process, it would be unwise to rely on them mechanically. As always, what I have to say today reflects my own views and not necessarily those of the Federal Open Market Committee (FOMC) or the Federal Reserve System. Policy must strive to promote the dual mandate objectives of maximum employment and price stability given to the Federal Reserve by Congress. I believe that this should be done in a transparent and systematic manner because this will help us to achieve our objectives.
Regarding the euro area, a digital euro would also contribute to supporting monetary sovereignty and strategic autonomy, by preventing the use of external digital assets – such as private crypto assets and non-euro CBDCs – as settlement assets, and by facilitating the emergence of a pan-European payment solution at the point of sale, which could serve as a vehicle for the use of a digital euro. But such a digital euro could and should be decentralised in its implementation, in the spirit of public / private partnerships mentioned earlier. On the other side of a mountain, you will obviously always find a side that is less exposed to the sun; here, this northern face is wholesale CBDC. It currently attracts little public interest, although it poses relatively less complex legal issues, and has two strong business cases. First, a wholesale CBDC could significantly contribute to improving cross-border and cross-currency payments, a topic on which we have made progress over the past year. Following a first report delivered to the G20 in July 2021, the Future of Payments Working Group of the BIS has recently finalised a new report outlining options for access and interoperability of CBDCs for cross-border payments. Second, a wholesale CBDC could accompany the tokenisation of securities as a safe and liquid settlement asset for them on a blockchain technology. Failing to offer market participants a wholesale CBDC could open the door to an extensive use of socalled stablecoins, which would pose a systemic risk.

Two of them focus on improving cross-border payments by working on interoperability between CBDCs with innovative solutions, such as a liquidity management tool based on decentralised finance technology (AMM, automated market maker), which we upgraded in the first half of 2022. The third experiment aims at deepening previous ones on the use of central bank money as a safe settlement asset for tokenised securities, together with other European partners. It involves issuing and distributing tokenised bonds on a blockchain. ***  Let me conclude by recalling that in the 1980s it was decided to design and build a large glass pyramid in its courtyard of the Louvre. This disruptive architecture by I.M. Peï was first met with outrage, as critics considered it incompatible with classical style. It was nonetheless built, and has since then become a cherished symbol of the Louvre. I hope that we central bankers will find our way to make tokenisation fit in the existing architecture, while regulating it to the extent necessary. Thank you for your attention. And I would now like to hand the floor over to Ms Mairead McGuinness. Page 6 sur 5 Villeroy de Galhau, F., Central banks and finance in the face of a triple revolution, speech, 25 November 2021 Villeroy de Galhau, F., Ethics of currency: a possible guide for central bankers?, Michel Camdessus Central Banking Lecture, 14 September 2022 iii See for instance Waller, C.J., CBDC - A Solution in Search of a Problem?
It starts with a boy being taught the history of the Olmecs, Mayans, Toltecs and Aztecs; of the Grito de Dolores of Don Miguel Hidalgo – the real “Zorro”; and of La Reforma of Don Benito Juárez. It starts with a boy who spent Saturdays at las charreadas, cruised the then-clean waters of Xochimilco, water skied on Lake Tequesquitengo, and whose mother took him on Sundays to La Villa to the Basilica of Our Lady of Guadalupe. It starts with a boy laughing at Cantinflas and weeping for Marcelino Pan y Vino. It starts with a boy playing Little League baseball for los Tigres and later, los Leones, coached by a man named Norman Borlaug. On weekends, Mr. Borlaug would take that wideeyed boy on tractor rides through corn and wheat fields, where at the end of the day they would eat paletas while the coach analyzed samples from the fields. Those samples became the basis for the Green Revolution that he started in Mexico and that ended up feeding billions of people around the world. Well, I think by now you know that the boy I’m speaking of is me. I may be the only central banker on the planet whose Little League baseball coach went on to win the Nobel Peace Prize! My fondest childhood memories are from Mexico.

Small wonder that I delighted when President Clinton asked me to become deputy U.S. trade representative and help implement NAFTA – even if it meant matching wits with formidable negotiators like Luis de la Calle and Herminio Blanco! Small wonder that as president of the Federal Reserve Bank of Dallas, I have delighted in working closely with Guillermo Ortiz and Agustín Carstens. Small wonder that at meetings of the Federal Open Market Committee or in U.S. banking circles, I have often argued Mexico’s case. Or taken sheer pleasure in pointing out to U.S. congressmen and senators, and in speeches and media interviews, that the Mexican government – unlike my own government – actually can agree on a budget, keep deficits under control, bring about structural change and resist interfering with the workings of an independent central bank. BIS central bankers’ speeches  1  I am full of pride for Mexico. I am full of pride that this country, the country of my happiest childhood years, would now choose to honor me with the Order of the Aztec Eagle. The citation for this honor speaks of my being a fierce defender of price stability. In the parlance of central banking, I am referred to as a “hawk.” Well, it may not surprise you to learn that taxonomists place the eagle and the hawk in the same bird family.
With its internationalisation, Islamic finance is therefore increasingly  BIS central bankers’ speeches  1  contributing to the more efficient mobilisation and allocation of funds across regions, and strengthening the financial and economic linkages in particular in between our emerging nations. In this regard, the transition of Islamic finance into the mainstream of the global financial system is an opportunity for the Nusantara financial intermediaries, in particular in Indonesia and Malaysia, to open new frontiers and to participate in this trend and thereby strengthen further our economic and financial linkages. With our own respective comparative advantages, we can leverage on the complementarities between our respective economies that will bring forth synergistic effects which will in turn contribute towards expanding the markets, widen the spectrum of products and services, and enhance financial markets activities. The Islamic Finance Agenda: enhancing linkage between Malaysia and Indonesia The linkages and relationships have been fostered in Islamic finance by several key developments. By the private sector, it has been in terms of enhanced presence and participation in each € respective financial institutions, and by practitioners, it has been in terms of practising in each others financial markets, intermediaries, and learning institutions. For policy makers and regulators, it has been in joint initiatives to create the enabling environment for effective and efficient cross-border financial business. There has been a greater sharing of technical expertise and experiences on financial markets and infrastructure development including the harmonisation of regulatory arrangements.

•  For without sound ethics, there can be no trust. Without trust, there can be no confidence. And without confidence, there can be neither growth nor stability. We are gathered here to discuss the future of financial market regulation. May I suggest that restoring a culture of trust based on strong ethical standards is imperative to securing a bright future for a purposeful financial industry. Thank you and I wish you all fruitful deliberations. 6  BIS central bankers’ speeches
M R Chatu Mongol Sonakul: Thoughts and reflections on the development of the domestic bond market in Thailand  Speech by Mr M R Chatu Mongol Sonakul, Governor of the Bank of Thailand, at the ADB Conference on Government Bond Market and Financial Sector Development in Developing Asian Economies, held in Manila, 28-30 March 2000. *  *  *  Mr Chairman, distinguished Guests, Ladies and Gentlemen, I am honored for the opportunity to share with you some of my thoughts and reflections on the development of the domestic bond market in Thailand. The Asian economic crisis, which started in Thailand in 1997, posed the most severe challenges to policymakers - how to contain the crisis, how to ease the burden of the poor and how to ensure a sustained recovery. But the biggest challenge to us all must be how the crisis could have been avoided in the first place. If I can turn back the clock and have a wish, my list may be long. But high in its ranking would be a well functioning Thai baht bond market. Benefits of bond markets A bond market provides a basic infrastructure for the development of the financial system and the overall economy. The bond market is an important alternative to bank lending. During a crisis, banks themselves often come under liquidity pressure, from both domestic and foreign withdrawals. Not only do they cease to lend, they also recall loan from their best debtors.

Currently, we have a semi-automated real-time delivery versus payment (DVP) system in place. It is a stop-gap measure but it serves as an important infrastructure in the settlement of the scripless government bonds. The system, when fully developed, will be supplemented by the intraday liquidity facilities and queuing mechanism, employing the latest digital signature technology to ensure secured and smooth real-time delivery and payment transactions. We are entering an era when capital flow across borders can only become more volatile than in the past. And we still have fresh memories of how disruptive it was before the crisis. In fact, it was a major cause of the crisis. How do we go forward? How do we guard against this? The work on the new International Financial Architecture seems to be very much lacking in the area of the behavior of key players, especially the highly leveraged institutions. In the eyes of the large  3  BIS Review 30/2000  Western countries, such issues have somewhat lost their urgency since the event surrounding the Long-Term Capital Management (LTCM) left the headlines. In the absence of such rules, it appeared that emerging markets can only look to our own selves for protection. We have to help ourselves. A well functioning bond market is an important tool in this respect. It will act as a reservoir that absorbs capital inflow, and channel it to good use.
The labour market held up well, with the number of people in employment (on the LFS measure) rising by 184,000 in the year to April, to an all-time high; and while the number of unemployed people on the same measure rose somewhat over the year, it fell on the claimant count basis, to 945,000 in May, a 26 year low. And inflation, though rather more volatile from month to month, averaged 2.2% over the past year very close to our 2½% target, although it fell to 1.8% in May. For only the third time in the past nine years the rate of growth in the year to the first quarter fell below the rate of inflation. So we have much to be thankful for, despite the hostile external environment we have had to contend with. We can also be grateful that the difficult international environment has not seriously undermined the stability of the global financial system - though that’s another story. The key question now is where are we going from here. Well, the relatively good news is that the external economic storms seem to be beginning to abate. The US in particular, which experienced negative growth in the middle of last year, saw a surprisingly strong recovery on the back of a reversal of falling stocks, over the winter; and while this may not have continued on the same scale through the spring, consumer spending has remained encouragingly resilient.

Conversely, the scope of the European exercise will be much broader, including in its adverse scenario shocks – both at the level of the global economy and at that of each national economy – that affect all types of exposures, including the sovereign debt portfolio. All told, Spanish banks’ starting position ahead of the new exercise can generally be confirmed as relatively favourable, if we consider the disposals of problem assets, especially by the most vulnerable banks, the recognition of impairment of the assets most affected by the crisis and the sizeable increase in all banks’ loss-absorption capacity. 4. Beyond the analysis exercise  In any event, the exercise will, irrespective of its final result, be a good opportunity to reflect on the relative strengths and weaknesses of the Spanish banking sector. And this can provide a platform for banks to take strategic measures enabling them to strengthen their competitive position in the new institutional framework. In this connection, the regional diversification of the major banks – following a model of stand-alone subsidiaries, in terms of both capital and liquidity – has clearly been an advantage that has enabled them to soften the impact on their profits of adverse but not synchronised macroeconomic developments in different economic regions. Also worth highlighting is their proven capacity to obtain high levels of profitability in the retail business and to maintain the value of franchises, despite the shortcomings evidenced in the selling of loan and deposit products.