samchain/econo-pairs-v2 huggingface dataset:
##urer and the customer. ultimately, we all should recognize that it is the interests of the customers, which is at the heart of it. jack ma of alibaba, aptly said it, “ customers should be number one. ” the challenge presented upon you today, is to embrace the digital economy and not lose sight of this. on that note, let me once again thank piam for the opportunity to share some thoughts with you today and i wish you a productive convention ahead. 4 / 4 bis central bankers'speeches

and productivity. in this regard, time and effort saved from less handling of cash and cheques can be directed to more productive tasks such as to increase sales, even by usage of whatsapp. second, increasing your digital accessibility to prospective clients. for a long as i am aware, the agency force has always dominated the insurance distribution 2 / 4 bis central bankers'speeches channel. in 2017, there was a total of over 56, 000 agents constituting a market share of approximately 63 %. irrespective of whether in general or life insurance, the agency force has traditionally been the physical point of contact and engagements with clients. but, with the internet and improved access amongst a growing number of the malaysian population, online insurance solutions will not only become more viable, but also easier to adopt. in this, the agency force cannot afford to stagnate. other industries with heavily digitalised services, like the air travel, hospitality and retail sectors, have elevated the digital literacy of the malaysian population and improved their appetite for efficient delivery and transparent pricing of services. in this sector, there remains significant untapped demand for general insurance products as a whole. the low penetration rate of 1. 4 % for general insurance, which is measured in terms of premiums as a share of the nation ’ s gross domestic product, is actually symptomatic of this. thus, agents who move quickly to improve their digital outreach will have a first mover ’ s advantage and are likely to gain a growing group of digitally literate malaysians. thirdly, conducting robust suitability assessment for customers. one thing worth emphasising repeatedly is this ; financial services offered must be suitable to the needs of the customers. while the bank ’ s guidelines on product transparency and disclosure attempts this by stipulating the ‘ rules of the game ’, we look to insurers and the agency force to ‘ play ’ according to these rules and seek out ways to achieve the outcome of ensuring consumers obtain financial services that are suitable to their needs. agents should develop their individual capacity to analyse customer requirements to identify their needs and develop risk profiles to match them with suitable products or combinations of products. for example in the case of motor insurance policies, agents should create awareness on optional add - on covers that are available and underwriting factors that will affect motor insurance premiums. appropriate profiling of a customer can be crucial in helping agents identify customised product recommendations efficiently. finally, perhaps i should bring your attention to
alone in absorbing goods and resources from around the world to feed its economic expansion. the extent of the strong worldwide demand, particularly the demand for commodities coming from the emerging powers of china and india, has fuelled canadian and australian growth and also has reminded us of just how closely intertwined countries have become. canada has traditionally been known for its net exports of non - energy commodities. minerals and lumber continue to be important commodity exports for us. however, over the past decade, thanks to plentiful oil and gas reserves and sharply higher prices for oil and natural gas, we are now increasingly known for our energy riches. similarly, australia's reserves and exports of minerals, uranium, and coal are among the largest in the world, and demand for those commodities helps to shape the views of global markets about your country. as well, we're both major exporters of grains, traditionally among the top three in the world. as such, i can certainly understand and sympathize with your farmers who are suffering the effects of drought. with such strong world demand and interest directed towards our commodities, it's perhaps a good time to pause for a moment and reflect on how we might try to strengthen the global trade and financial systems that we rely on so much. world commodity markets are subject to ups and downs. the movements in commodity prices and our exchange rates can pose serious economic challenges for firms and workers. in turn, central bankers and governments must design policies that allow businesses and workers to react rapidly to changing economic circumstances. the healthy, steady prosperity of our two economies is a testament to domestic policies that are working to encourage flexibility, and thus facilitate adjustment. policies to encourage flexibility on the domestic front, it seems that both canada and australia have been on the right track - and we both have the economic record to demonstrate that! in terms of monetary policy, both the bank of canada and the reserve bank of australia have embraced a policy of inflation targeting backed by a floating exchange rate. for over a decade, both the reserve bank of australia and the bank of canada have concentrated on maintaining low and stable inflation. inflation targeting helps to preserve confidence in the future value of money and, in that way, anchors inflation expectations. this helps business in making appropriate investments, by maximizing the clarity of the signals that are sent by prices. controlling inflation is also crucial to maintaining the confidence of markets at home and abroad. central banks pursue inflation targeting by adjusting interest rates with the goal of keeping total supply

##sch, yves ( 2017 ), “ digital base money : an assessment from the ecb ’ s perspective ", speech at the farewell ceremony for pentti hakkarainen, deputy governor of suomen pankki – finlands bank, european central bank, 16 january. 14 hayek, f. a. ( 1974 ), “ the pretence of knowledge ”, nobel memorial lecture, 11 december. published american economic review, 79 ( 6 ) : 3 - 7, 1989. 9 / 9 bis central bankers'speeches
and much learning. 5 / 5

- sectional heterogeneity in income and wealth, the so - called heterogeneous agent models, or bewley - huggett economies. the main takeaway from these earlier models is that one could rationalize the low observed real interest rate, inconsistent with representative agent models with complete markets, in a model in which households have precautionary savings motives to insure against income shocks. in this framework, the degree of income uncertainty and credit constraints shape wealth inequality and imply a real interest rate in equilibrium that better resembles that in the data. another key development was the widespread increase in access to large - scale microdata, which helped the profession to evaluate existing economic theories and build better economic models. microdata has been a cornerstone to the inclusion of heterogeneity into macroeconomic models, as it allows a deeper understanding of individual behaviors. without it, theoretical models could not be adequately tested. for 2 / 5 bis - central bankers'speeches example, the work by benjamin garcia, mario giarda, and carlos lizama that will be presented in this conference combines location - based microdata on credit and debit card transactions with income surveys to show that fiscal policy programs that focused on lower - income regions are associated with larger consumption responses, as predicted by models of heterogeneous agents with liquidity constraints. these theoretical and empirical advances in the literature were complemented by the improvement of computational capabilities. these gave rise to the recent development of the so - called heterogeneous agents new keynesian model or hank model, which incorporated important features that improved the standard new - keynesian - model'fit to the data and introduced new transmission mechanisms of monetary policy. one of the main lessons from these models is that the direct effects of monetary policy on consumption, the so - called intertemporal substitution channel, can be very small compared to its indirect effects on income, which are shaped by general equilibrium forces that depend on the characteristics and behavior of households. another important recent theoretical development is the model of heterogeneous firms and financial frictions, which alters the way we think about the transmission of monetary policy. while the empirical evidence suggests small effects of monetary policy on aggregate investment, the use of disaggregated data allowed us to observe that investment of firms with " good " financial conditions reacts strongly to monetary policy but not so the investment of financially constrained firms. therefore, the effect of monetary policy depends on the distribution of firm
at 4 1 / 4 per cent. the current level of the policy interest rate is judged, at this time, to be consistent with achieving the inflation target over the medium term. mr. chairman, paul and i will now be happy to answer your questions.

advisors or radiologists. modern social media enable grievances to be amplified many times over. by contrast, the opportunities being created by the application of new technologies — and the broad, positive spillover benefits to the rest of the economy — are much harder to identify and measure. this brings me to my first policy implication : it falls to policy - makers to explain the process, and offer concrete evidence that it is unfolding as usual. we need to demonstrate that beyond the initial negatives are many positives, which are likely to dominate over time. we need to acknowledge that real people and businesses are being disrupted and require policy support. and we need to point to the new and different jobs that are being created and explain that the new incomes are being spent in a wide array of traditional economic sectors. in other words, when mushrooms grow, they have yeast - like second - round effects as the growers spend their incomes. we can do this now because the narrative around technological disruption is not much different from the disruption associated with globalization, which has been with us for some 20 years. but 1 / 3 bis central bankers'speeches beyond explaining and documenting these complex dynamics, we also need to be attentive to potential pitfalls, such as those connected with the rise of so - called superstar firms, as we discussed earlier here. these and other legitimate public policy concerns make it imperative that policy - makers reallocate some of the benefits of growth to cushion the impact on those who are directly affected by disruption, and help them adjust. all that being said, let us consider the possibility that we are living in a profound, global, positive expansion of aggregate supply — the product of digital disruption. as with all major supply shocks in the past, it could take a long time for us to truly understand that it is happening. still, we must conduct monetary policy in the meantime. we can start by measuring growth in the digital economy itself. one rough proxy for the digital economy — the computer system design and related services sector — accounts for close to 2 per cent of canadian gross domestic product today and has been growing by about 7. 5 per cent annually for the past five years. but that growth is likely to be only the tip of the iceberg — what we need to know is how it is spreading through other sectors and affecting aggregate supply. for example, in the automobile industry, advances in computer technology are driving improvements in quality and represent significant value added from one model year to the next
the private and public sector must act together by sharing vital data and information to guide macroeconomic monitoring and policy. it is therefore important to get your support in collecting more frequent, timely and accurate data on developments in the economy. i want to take this opportunity to appeal to private investors to continue to cooperate and provide timely and accurate data. i also wish to thank those who have responded to our previous surveys.

and rate of change of the exchange rate. the exchange rate is of crucial importance for low income economies for at least three reasons. first, these economies generally exhibit a strong and rapid pass through of exchange rate movements to domestic prices. volatility in the nominal exchange rate imparts volatility to domestic inflation. in mid 2011, a very sharp fall in the nominal exchange rate against the dollar, by 18 percent in three months, made a large contribution to the acceleration of inflation in the third quarter of that year ; this is not an experience we wish to repeat. secondly, exchange rate volatility is very disruptive for firms which have to transact in foreign exchange markets. thirdly, an overvalued real exchange rate is damaging for the competitiveness of traded goods industries and discourages private investment in these industries, which in turn retards long term economic growth and development, as a large volume of research, including research by imf staff, has demonstrated. the approach that we have adopted at the bou is to dampen short term volatility in the nominal exchange rate through sterilized intervention in the interbank foreign exchange market ; i. e. sales or purchases of foreign exchange accompanied by secondary market operations to keep the stance of monetary policy ( the interest rate ) unchanged. our experience shows that sterilized interventions can be effective in influencing the exchange rate. for example, when the exchange rate was depreciating very rapidly in the last few days of february following announcements by donors that they would suspend aid, the bou intervened and was able to stem the depreciation. the effectiveness of sterilized intervention most probably arises from portfolio balance effects in the context of imperfect capital mobility. we also attempt to lean against prolonged overvaluation of the real exchange rate, also using sterilized intervention. however, there are constraints on the extent to which this is practically feasible. sterilization to stem appreciation involves the issuance of domestic securities to mop up the liquidity created by foreign exchange purchases, which requires that the central bank must have a sufficient quantum of securities at its disposal for this purpose. it is also expensive for the central bank because of the large interest rate differential between domestic currency securities and the assets in which the central bank holds its foreign currency reserves. in uganda this differential is currently about 11 percentage points. the speed of transition to itl i would like to make a brief comment about our experience with regard to the speed of transition
four themes that i have highlighted today - - the benefits of risk - focused supervision, the value of sound accounting and disclosure, the need for adequate capital, and the importance of international supervisory coordination. i appreciate having the opportunity to meet with you today to discuss key supervisory issues. i look forward to our continuing joint supervisory efforts toward coordinated international bank supervision.

a success. the starting point : the debt crisis and the emergence of financial fragmentation let me start by briefly reviewing the evolution of the crisis in the euro area. very broadly speaking, the crisis has had two main phases. the first phase began with the bankruptcy filing of lehman brothers in september 2008. here the euro area shared in a global liquidity crunch that was largely imported from abroad. the second phase began in may 2010 with a sovereign crisis that was localised in the euro area, and that was partially exported to the world economy. this second phase was arguably the more pernicious for monetary union. the re - pricing of sovereign risk in the euro area spread from greece to other vulnerable economies, and from sovereign to private debt and vice versa. in the process, the liquidity crunch morphed into a systemic crisis for the banking sectors of a number of member countries, and for the integrity of monetary union as a whole. the traditional exposure of banks in vulnerable countries to their own sovereign issuers became a quick carrier of bis central bankers ’ speeches financial contagion as their sovereign bond holdings depreciated and eroded their capital in the eyes of creditors. this adverse sovereign - bank feedback loop interacted with existing vulnerabilities. countries with persistent competitiveness losses and associated large current account deficits – as was the case of portugal – were particularly sensitive to a reversal in external financing. this was exacerbated by capital flight to core economies which started to deplete banks ’ deposits in the most vulnerable countries. concerns that systemic sovereign issuers may lose market access fed fears that they may be forced to redeem their liabilities in a currency different from the euro, and thus de facto leave the euro area. “ redenomination fears ” became a new source of market anxiety. there was a risk that such unwarranted concerns would become self - fulfilling and the spectre of destructive tail scenarios was looming. in this context, the process of financial integration, which had evolved at a rapid pace since the inception of the euro, was partially reversed, giving way to fragmentation. interbank financial fragmentation per se was not a new phenomenon in the post - lehman world. however, during the most severe stages of the sovereign crisis the fractures across the euro area were not idiosyncratic but systemic – that is, they ran along national borders. this reversal of the integration process risked undoing one of the key benefits of the common currency. fragmentation led to an impairment
participants in the face of unanticipated losses. financial leverage was also an amplifying factor in many of these events. in some instances, there were unexpected patterns of correlation in the movement of asset prices and in credit losses across borrowers. these experiences led to changes in risk management practices, in supervision, and in our capacity as a central bank to contain systemic risk. these responses have reduced the overall vulnerability of the system to the types of shocks we ’ ve experienced. moreover, because we ’ ve experienced such a variety of different types of stress, overall risk may be lower. but this recent history also suggests that we need to maintain a degree of humility and caution about our capacity to anticipate the nature and dynamics of future stresses to the financial system. how strong and resilient is the u. s. financial system today? our sense is that the system is quite strong and resilient relative to the recent past. the major financial institutions at the core of the system are profitable and well capitalized. the total risk - based capital ratio for the ten largest u. s. - owned bank holding companies has averaged more than 12 percent over the past two years, a slight increase relative to prevailing levels since the mid - 1990s. at year - end 2003, nearly every bank in the country met the regulatory standards to be considered “ well capitalized ”, with fewer than 100 - representing less than 1 percent of banking industry assets - failing to meet these standards. while risk - based capital ratios do not always provide an accurate picture of true capital strength, especially for the larger and more complex institutions, these statistics are nonetheless broadly indicative of a very strong underlying capital position of the industry. robust capitalization is important because capital, along with earnings, provides the first line of defense against losses. counterparties and customers are less likely to lose confidence and pull back from a well - capitalized institution in the wake of a large loss or other negative event. capital, in effect, helps protect firms against “ runs, ” both traditional “ runs ” where short - term funding and liquidity are at issue, and more gradual, but just as damaging “ runs ” on franchise value, where customers turn elsewhere for services because they question the long - term viability of a firm. consolidation has resulted in larger and more diverse financial institutions at the core of the u. s. financial system. deregulation has enabled firms to better optimize the scale, geographic spread, and

potential spillover effects of europe on the united states, we will continue to monitor the situation closely. thank you for your invitation to testify today, and i look forward to your questions. bis central bankers ’ speeches
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in practice, though, things are more difficult and the use of other tools would raise a new set of complexities and operational and governance challenges. it is also worth recalling that the task of controlling inflation has been assigned to central banks following years of experience with other arrangements that did not work out so well. we do not operate in a vacuum, though, and other policies affecting aggregate demand and supply also affect inflation outcomes. managing demand and expanding supply broadly speaking, inflation is determined by expectations of future inflation and the balance between demand and supply. if demand is strong relative to supply, prices will rise more quickly. when firms are operating close to capacity, production costs increase and there is less incentive to discount. and when there is strong demand for labour relative to supply, workers tend to seek, and can achieve, larger wage increases. so both the demand - side and the supply - side of the equation matter for inflation, and policies on both sides can affect inflation outcomes. at the central bank, we work primarily on the demand - side of this equation. our tool – interest rates – influences the level of aggregate demand in the economy. at any point in time, we take the supply - side of the economy as given, even though, in the long run, successful monetary policy can create conditions that promote investment and the expansion of supply. our job is to make sure that demand grows in line with supply. over recent times we have been working to slow the growth of demand to establish a better balance with supply, thereby shortening the period of high inflation and avoiding an unhelpful adjustment in longer term inflation expectations. notwithstanding our focus on managing aggregate demand and expectations, supply - side considerations feature heavily in the board ’ s deliberations as they influence inflation outcomes. we saw this very clearly during the pandemic with the problems in global supply chains. a good example is the price of shipping a container, which surged during the pandemic but has now normalised ( graph 9 ). over time, lower shipping costs should be reflected in the prices of goods in australia. graph 9 global container shipping rates 2017 – 2019 average = 100 index index sources : rba ; refinitiv with the pandemic now behind us, our attention has turned to a few other supply - side issues. the first is the balance of supply and demand in the housing market. as rents make up 6 per cent of the cpi, what happens here can have a significant influence on overall inflation. over