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Against the imperative of infrastructural development, the States have been under pressure to provide guarantees for facilitating the flow of funds to the high-priority sectors, State public sector enterprises, developmental institutions and local bodies, for commercial as well as non-commercial activities as also for urban development. | Other tools are designed to condense the information into risk dashboards, colour coded systems or web diagrams to present an overview of the highly complex picture. More sophisticated methods include stress tests to study the effects of different scenarios and specified econometric models capturing potentially destabilising feedback loops and systemic effects. Clearly, these tools are important and helpful in preventing and managing systemic risks. | 0 |
In the absence of a nominal exchange rate the alignment of national fiscal policies and the prevention of imbalances via rules is a necessary condition to support the credibility of the single currency. The recent agreement reached by the European Parliament and the Council on the “Six Pack” is a step in the right direction. | The Stability and Growth Pact has been strengthened; imbalances and competitiveness will be monitored at an earlier stage. 2. Since the beginning of this year, the European Systemic Risk Board and the European Supervisory Authorities are operationally. | 1 |
I know that my colleagues in the cash area appreciated the constructive cooperation that you have been able to establish over the years, and they look forward to seeing further progress on these issues. | Fostering innovation: 21st century ways to pay 25 years ago, nobody would have expected that the way we work, communicate and access information and entertainment would be changed as profoundly as it has through the invention of the chip, the internet and the mobile phone. However, the diffusion of innovations in retail payments has been strikingly slow. | 1 |
The continuation of real estate developments at Apes Hill, Lime Grove, St. Peter’s Bay and the Four Seasons BIS Review 14/2010 16 Resort, as well as new ventures such as Port Ferdinand and Beachlands should provide an increase of foreign financing. However, outflows will increase with the repayment of a $ million loan due in June 2010. | Total financing is not expected to be sufficient to fully finance the anticipated external current account deficit in the absence of new borrowing. Consequently, the NIR is projected to decline somewhat in 2010, and the foreign reserves cover may revert to the levels of 2008. | 1 |
The overall vision is to contribute to an inclusive and sustainable globalization – to overcome poverty, enhance growth with care for the environment, and create individual opportunity and hope. | In the long run, the ultimate size of the balance sheet will depend mainly on the demand for Federal Reserve liabilities--currency, reserves, and other liabilities--and on the Committee’s longrun framework for setting interest rates. 21 The next slide compares the Fed’s balance sheet of May 2007 with that of May 2017 (figure 8). | 0 |
Another of our consistently repeated messages has been the need to guard against inflation risks coming from various sources, such as high and rising oil prices, increased pass-through to consumer prices, the risk of stronger than expected wage developments and, in the medium- to longer-term, strong money and credit growth. | Our actions, in raising rates eight times, including the most recent increase, have been consistent with these messages. With respect to the outlook for interest rates, I would emphasise that our future decisions are not predetermined and there is no pre-commitment to any future policy action. Our position is clear and has been consistent over time. | 1 |
Third, the Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. This will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance. | And fourth, we also decided to continue to conduct the main refinancing operations and threemonth longer-term refinancing operations as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the last reserve maintenance period of 2019. | 1 |
Surveys suggest that approximately half of equity extraction shows up in additional household expenditures, reducing savings commensurately and thereby presumably contributing to the current account deficit. | Interestingly, the change in U.S. home mortgage debt over the past half-century correlates significantly with our current account deficit.6 To be sure, correlation is not causation, and there have been many influences on both mortgage debt and the current account. Nevertheless, over the past two decades, major innovations in the United States have improved the availability and lowered the costs of home mortgages. | 1 |
Governing Council spent a lot of time discussing our expectations for growth once we get past the current surge in the virus. We recognized that, while the arrival of vaccines has reduced uncertainty from exceptional levels, uncertainty remains elevated. In particular, the timing and strength of the economic recovery will depend importantly on the evolution of the virus and the rollout of vaccines. | Similarly, in a low income country such as ours, we also believe that the ability of market participants, ranging from far flung subsistence farmers to the ultra sophisticated financial market players, such as you, is much more varied than in a developed country. | 0 |
We need to ensure we are able to offer the breadth and depth of statistics they require. In this regard, we recently relaunched our online statistics to make access easier for users. The third is communication. | When the Central Bank of Barbados was established 47 years ago, we undertook the task of educating and sensitizing the public on economic matters, using, inter alia, quarterly press conferences and physical documents for our Economic Review and Annual Reports. Now, our audiences are more fragmented than ever, and consume information in different ways. We have to retool our communications to meet their needs. | 1 |
I am also pleased to report the progress being made by other MFIs outside the BSP’s supervision in moving the industry forward. | While we acknowledge the rights of the lenders to recover overdue loans, I would like to make it clear in no uncertain terms that the Reserve Bank has zero tolerance for misconduct towards the borrowers. You would agree that exclusive focus on business growth and bottom lines without considering the vulnerabilities of the borrowers by any entity is fraught with pitfalls. | 0 |
In Japan, there are reports of more and more successes, especially in the retail sector, as the older generation seems willing to pay more for those goods and services that satisfy their needs. 3.2. Adjusting to ubiquitous ICT Now I turn to ICT. As I have explained, ICT disrupts the status quo because it is one great global leveling force. | These include, to varying degrees across countries and banks, cost inefficiencies, excess capacity and a lack of income diversification, while NPLs still remain high in some countries. In this context, a comprehensive action plan for dealing with legacy asset quality issues has been adopted by the Council of the European Union and is now being followed up by EU and national authorities. | 0 |
This photo was taken during an informal gathering at a country house hotel outside Frankfurt about three years ago. Let's take a look. Here you can see a group of mostly middle-aged, white European men sitting around a large table. There is also one woman at the table, President Lagarde. So, what can we deduce from this? First, decisions are taken by a group. | That is positive by itself, because ideally the decision-making process should reflect the different values and perceptions of all members. However, the group appears to lack diversity. True, a person's outer appearance can be deceptive. It does not necessarily tell you anything about his or her value set or perceptions. | 1 |
In fact, the Wallis recommendations increase our responsibilities in this area, so much so that we are getting a separate Board to oversee payments system issues. | As you will know, we already have a lot on our plate in this area, with the RTGS project nearing the operational stage and with the next major project likely to be in the area of reducing foreign exchange settlement (including Herstatt) risk. | 1 |
So we actually face some quite difficult judgements in assessing how policy settings and global conditions will affect domestic economic activity and inflation in the months ahead. Despite increased global risk aversion, it is not yet evident that the carry trade is dead. We have still seen a relatively strong issuance in the New Zealand dollar in recent months via Uridashi bonds for example. | The New Zealand dollar remains at relatively high levels and has recently been at a post-float high against the US dollar, albeit largely reflecting the weakness in the US dollar itself. | 1 |
Whether small or large, all of the meetings brought together small business owners, small business trade groups, financial institutions and other private lenders, bank supervision officials, CDFIs, and other small business support service providers to discuss ways to improve credit flow to viable small businesses. | As one IEO study noted : It is now recognized that a world economy dominated by integrated markets, and with countries at very different levels of economic and institutional development, requires a system of global, yet non-binding, rules of conduct (“soft law”) that are internationally promulgated and nationally implemented….IMF surveillance has been seen as the instrument to disseminate the new sets of rules across the Fund’s near-universal membership, and to facilitate their implementation by member countries.1 14. | 0 |
With employment conditions being that favourable, Ireland now sees net immigration. Ireland is the only EU country that has consistently seen double-digit growth in private investment since 1994. Productivity has thus risen faster than in most EU countries. Ireland is now among the most productive countries in the EU. Last year, GDP per worker was 15 percent above the EU average. | Foreign direct investment has been important in financing the Irish boom. Inward direct investment nearly tripled between 1998 and 2000. The major part originated outside the EU; the US alone contributed three-quarters. Ireland is now a favourite location for enterprises trying to gain a foothold in the EU. | 1 |
In this context, higher capital requirements mean both, a higher quantity of capital as well as a higher quality. Particularly, the minimum core capital requirements will rise from currently 2% to then 4.5%, plus an extra 2.5% that will be introduced in stages from 2016 on. Tier 1 capital requirements will increase from currently 4% to then 8.5%. | Then, traditional financial relationships aren’t necessarily still true. Finally, time-honored policy transmission mechanisms no longer seem to hold in the past. In response to these challenges, BSP has had to realign our own policy framework – to go beyond considering price stability as a sole objective to one that nurtures financial stability alongside price stability. | 0 |
In Mauritius, recurrent strikes by trade unions, demands for higher wages and salaries, recurrent inclement weather conditions, high inflation rates fueled by high prices of oil and high unemployment rates were certainly not ideal conditions for a take-off to self-sustained growth. It was a decade of restlessness and crises in many respects. Admittedly, the economy did however undergo meaningful transformation. Policy mistakes were made. | During the next 18 months you will be working closely with experts from the ECB as well as with experts from national central banks of the Eurosystem. I am very pleased that we have found leading experts who will be able to support you in the areas of your choice. What will we be working on? | 0 |
By signalling a clear increase in preference for local inputs, localisation policies could (unintentionally) encourage firms in supported sectors to increase their price markups. Indeed, there is empirical evidence that global geopolitical risks are associated with higher inflation. [13] One approach to supply chain reorientation is “friend-shoring”, whereby supply chains linkages with like-minded trade partners are increased. | This system, which is being fine-tuned as we speak, further explores the informational potential of both the Central Credit Register and the Central Balance Sheet Database and will provide Banco de Portugal with its own internal credit risk assessment system, thus reducing its dependence on external sources. | 0 |
BIS central bankers' speeches 19 Table 9 Objectives for the public finances and the budgetary packages (percentages of GDP and millions of euros) 2010 Economic and Financial Document (13 April 2011) Net borrowing 4.6 Primary balance -0.1 Debt 119.0 GDP Istat revision of GDP (19 October 2011) Debt GDP 2013 2014 133.1 3.9 0.9 120.0 2.7 2.4 119.4 1.5 3.9 116.9 0.2 5.2 112.8 167.5 -2,108 -5,578 -24,406 -47,973 277.0 Decree Law 138/2011 (ratified by Law 148/2011) Effect on net borrowing GDP 2012 1,548,816 1,593,314 1,642,432 1,696,995 1,755,013 Decree Law 98/2011 (ratified by Law 111/2011) Effect on net borrowing (1) Economic and Financial Document Update (22 September 2011) Net borrowing Primary balance Debt 2011 Memorandum item: 10-year BTP/Bund spread (basis points) -732 -22,698 -29,859 -11,822 433.7 4.6 -0.1 119.0 3.9 0.9 120.6 1.6 3.7 119.5 0.1 5.4 116.4 -0.2 5.7 112.6 1,548,816 1,582,216 1,622,375 1,665,018 1,714,013 398.7 118.4 1,556,029 516.0 2012 Stability Law (Law 183/2011) Effect on net borrowing -1 -2 -1 Decree Law 201/2011 Effect on net borrowing -20,185 -21,310 -21,424 376.0 (1) The effect takes account of the amendments to the safeguard clause contained in Decree Law 138/2011. | 20 BIS central bankers' speeches Table 10 Minimum contribution and age requirements for retirement Years Long-service pensions Employees age contribution period age + contribution period or: contribution period (3) 2011 2012 2013 2014 Additional months (1) Years Years (2) Years (2) 60 35 96 12 40 12 61 35 97 18 40 18 Old-age pensions (4) age men (5) women (private sector) (5) 65 60 12 (18) 12 (18) women (public sector) contribution period 61 20 12 Self-employed workers age contribution period age + contribution period or: contribution period (3) 42 and 1 month (41 and 1 month) 42 and 5 months 42 and 6 months (41 and 5 months) (41 and 6 months) 42 and 1 month (41 and 1 month) 42 and 5 months 42 and 6 months (41 and 5 months) (41 and 6 months) 66 66 and 3 months 66 and 3 months 62 62 and 3 months 63 and 9 months (63 and 6 months) (63 and 9 months) (64 and 9 months) 66 66 and 3 months 66 and 3 months 20 20 20 (1) Interval between satisfaction of the requirements and payment of the first pension. | 1 |
In order to cut the toxic links between banks and sovereigns, I have for some time been calling for an end to the preferential regulatory treatment of sovereign debtors, although it is clear that this will not happen overnight. The year 2015 must be used to make progress in this area. | We have already achieved significant progress this year. A total of 200 bps reduction in 2018 is in line with our medium-term goal of reducing RRR from 20 percent to single-digit level over a six-year period. Moving forward, the BSP will continue to review and improve the operational features of the IRC system to ensure greater flexibility and efficiency in conducting monetary operations. | 0 |
In the long term, innovation due to increased competition is the main reason why market integration raises welfare.5, 6 But for newcomers to be able to challenge incumbents, they must not trip over red tape. | Unfortunately, bureaucratic barriers to setting up a business are still high in many European countries – not least in Germany, which ranks 114th in the World Bank’s Doing Business report in this regard. Spain does comparatively better, ranking 74th. But this still implies a considerable distance to the frontier of best practice. | 1 |
In refreshing contrast, in India, we have had remarkable financial stability, not fortuitously, but thanks to pre-emptively and pro-actively delivered prudential measures like increase in risk weights for exposures to commercial real estate, capital market, venture capital funds and systemically important non-deposit accepting Non Banking Finance Companies (NBFCs). | These pre-crisis prudential regulatory measures of Reserve Bank of India represented what now are famously known as “countercyclical prudential measures” and have been strongly commended for adoption by various recent Working Groups / Committees of international regulators. | 1 |
To the extent that short-term rates assist with the timely and accurate measurement of financial risk, they also play a crucial role in maintaining financial stability. | Both of these speak directly to the mandate of the SARB, which is to achieve and maintain price stability in the interest of balanced and sustainable economic growth in South Africa while, together with other institutions, playing a pivotal role in ensuring financial stability. | 1 |
Federal Reserve Bank of Kansas City and Center for Popular Democracy (2016). “Federal Reserve and the Center for Popular Democracy Listening Session,” August 25, https://www.kansascityfed.org/publications/research/escp/symposiums/escpevent. Ganong, Peter, and Daniel Shoag (2015). “Why Has Regional Income Convergence in the U.S. Declined?” working paper. Cambridge, Mass. : Harvard Web Publishing, January, https://scholar.harvard.edu/files/shoag/files/why_has_regional_income_c onvergence_in_the_us_declined_01.pdf. Goetz, Stephen, Mark Partridge, and Heather Stephens (2017). | All the indicators show that the degree of competition in the Italian banking system increased significantly in the eighties. Between 1979 and 1989 the average number of banks present in each province rose from 20 to 27. The concentration of the loan market fell by 15 per cent nationwide and by 20 per cent in the Centre and South. | 0 |
It involves not only competition between Chinese and foreign-funded companies, but also equal and adequate competition among Chinese companies. Opening-up accelerated the access of domestic private capital, and subsequently brought in the concept of national treatment. Market access criteria should be the same for domestic and foreign-funded companies. | This means we need to understand that central banks need to act when facing difficulty, but at the same time acting could be a big threat to the bank itself. So, when deciding on their policies, central banks need to consider not only the overall economic impact of those policies, but also the possible implications for their own sustainability. | 0 |
We are also supporting the adoption of innovative financing schemes such as the Agriculture Value Chain Financing and Supply Chain Financing to enhance the bankability of agri-businesses and MSMEs and to increase the capacity of financial institutions in serving these underserved market segments. Digital Financial Inclusion of MSMEs The BSP has launched initiatives that will fast track the digital transformation of the financial ecosystem. | Weighing up the advantages and disadvantages of simple and complex regulation, it is probably better in this instance to use risk weightings in combination with the leverage ratio – which is precisely what the new rules envisage. Consequently, my answer to the first question is that regulation must be as simple as possible and as complex as necessary. | 0 |
The Government is moving in this direction, as the measures recently adopted also testify. The objectives are commendable. The means must be given careful consideration: liberalizing signifies relying for consumer protection as much as possible on transparency and competition and the oversight of the competent authorities. | The structural reform agenda is still a long one and I shall come back to it on another occasion. Let me just say here that it is easier to implement reforms when the economic situation is favourable; the present offers an opportunity that must not be missed. The recovery also creates favourable conditions for continued action to consolidate the public finances. | 1 |
5 First, the sample size of the very largest firms is obviously small, limiting the ability of researchers to derive precise statistical relationships between cost, on the one hand, and firm scale and scope, on the other. | In fact, the rapid expansion of MBF in the pre-crisis years was driven largely by competitive market forces, financial innovation, and the ongoing expansion and deepening of 2 BIS central bankers’ speeches financial markets. So, if the associated risks are properly managed, MBF can be beneficial to the economy. In aggregate, the MBF sector is big. | 0 |
The abatement of the tensions on sovereign debt markets, which began in mid-2012, gathered 12 The Governor’s Concluding Remarks Annual Report 2016 BANCA D’ITALIA momentum in 2013, and at that point made desirable the establishment of a publicly supported company to manage banks’ non-performing assets, a possibility which we actively supported. | Its fruition was, however, impeded by the position on State aid adopted by the European Commission in mid-2013. In part following the proposals drawn up by European institutions, in recent months the idea has been mooted again. | 1 |
Secondly, the current accommodative stance of monetary policy coupled with the increased competition in BIS central bankers’ speeches 1 the housing market calls for greater vigilance by banks in monitoring risks linked with housing loans. In Mauritius, credit for housing purposes has always constituted a large share of total credit to households. | Currently, advances granted by banks for housing purposes account for around 62 per cent of total household credit. As a percentage of GDP, housing loans have increased from 7.1 per cent at end-March 2008 to 12.1 per cent in the first quarter of 2013. | 1 |
It also involves teaching them the essential skills and concepts they will need to make major financial choices. High school students might not recall specific information from a lesson about loans a year later when they go to get their first car loan or student loan. | However, if they understand and remember some basic ideas – for instance, that it’s important to shop around for a loan to get the lowest interest rate, to review the fees charged, and to know how to contact financial counselors and advisers – they will be more likely to make a good decision. | 1 |
Now in September 2019, part of the package that we announced a couple of weeks ago was: we did a small policy rate cut – the deposit facility rate went from –40 basis points to – 50 basis points, we provided reinforced forward guidance and we restarted the net asset purchase programme (APP), running at € billion a month. | Average inflation is seen to slightly exceed the upper end of the target band of 2-4 percent this year but is projected to settle close to the midpoint of the target range in 2022 and 2023. Inflation expectations remain firmly anchored to the baseline projection path. | 0 |
Moreover, after the tragic events of September 11, many economists feared that the U.S. economy would weaken substantially and that productivity growth would suffer a severe setback as well. In the event, output per hour in the nonfarm business sector has grown in excess of 5 percent over the last four quarters. How should we interpret this truly extraordinary performance? | The risks to the projection are estimated to be less pronounced than three months ago, as the uncertainty regarding gas supply to Europe has decreased and economic activity indicators for the euro area at end-2022 and early this year turned out better than expected. | 0 |
So, we’re featuring three very different cities in a series of video reports that will be accessible on the Federal Reserve’s website. These “Reports from the Field” showcase three promising stabilization efforts that highlight grassroots innovation and collaboration. Cleveland Cleveland neighborhoods face five decades of population loss, outmigration of jobs, and urban sprawl, in addition to the more recent wave of foreclosures. | Despite these persistent challenges, city leaders have responded with dynamic leadership. In Cleveland, public and private partners have created an innovative stabilization strategy that uses targeted data to help community leaders focus scarce resources on the neighborhoods that have the best chance for success. This is a model that has great potential to be replicated in other cities. Let’s watch Cleveland’s story. | 1 |
First, the interdependence of monetary policy and the financial system means that central banks have a strong and natural interest in financial stability. Second, central banks in most countries are strongly involved in banking supervision and can therefore bring their expertise to bear in this field. | Despite all this, there’s one point we should put on record: basically it’s a good sign for us in Germany that, when it comes to gender equality, the discussion is usually, though not always, about careers. It means that in other areas we have evidently come a long way. | 0 |
• NPLs to total loans and net NPLs to net loans ratios have improved to 8 percent and 2.1 percent respectively over the period CY 2000 to June 2006. • All the capital adequacy ratios have shown improvement. | Jürgen Stark: Cyclical and architectural issues of the international economy Keynote speech by Dr Jürgen Stark, Vice-President of the Deutsche Bundesbank, at the conference on the international financial architecture organised jointly by the Deutsche Bundesbank and the American Council on Germany, Frankfurt, 6 September 2002. | 0 |
However, it is also important to bear in mind the historic dimension of the euro area as a common European project, and the adequate approach to evaluating the exchange rate of the euro against the USD is certainly a long-term one. … How can we turn the current expansion in the euro area into a prolonged period of non-inflationary growth? | There is no doubt that this is a challenge for both society as a whole and policymakers. What it takes is people who are prepared to act as entrepreneurs and are willing to take risks. What it takes are policymakers who set incentives and push for continuous economic reform and adjustment. | 1 |
(2007), Source: ECB, St. Louis FRED database Global Financial Data, Datastream, Freddie Mac and Bureau of Note: The consumption growth standard deviation is computed Labor Statistics as the 5-year moving standard deviation of per capita Note: The equity (S&P 500) and the housing (owner-occupied consumption growth. | In the Indian context, this ratio has increased eight fold over last four decades, from 14 per cent in 1972 to well over 100 per cent now. These statistics clearly reflect the country’s growing trade and financial integration with the rest of the world. | 0 |
This complexity is compounded by the challenges posed by the novelty of the monetary policy regime, which implies that the tools and approaches used to identify risks to price stability as well as the procedures used to produce macroeconomic forecasts for the euro area need to be continuously re-evaluated and monitored closely. | Even less than would be possible under “normal” circumstances, in such an environment monetary policy cannot be reduced to reacting in a quasi-mechanical manner to monetary developments or inflation forecasts. The complexity of the environment requires a more sophisticated approach, embodied in the ECB’s strategy. | 1 |
With computer-assisted design, experiments can be evaluated in a virtual reality setting, where mistakes can be readily corrected without the misuse of time and materials. | And new technologies have had extensive applications in the services sector -- for example, in health services, where improvements in both diagnosis and treatment have been singularly impressive; in airline efficiency and safety; and in secretarial services now dominated by word processing, faxes, and voice and electronic mail. | 1 |
To address dollar funding pressures worldwide, we have significantly expanded reciprocal currency arrangements (so-called swap agreements) with foreign central banks. These agreements enable the foreign central banks to provide dollar funding to financial institutions in their jurisdictions, which helps to improve the functioning of dollar funding markets globally. | Over the past seven years the driving force behind the development of financial stability analysis at the ECB, both at the conceptual and practical level, has been Tommaso Padoa-Schioppa. As you are aware, today is also Mr. Padoa-Schioppa’s last working day at the ECB. | 0 |
With the BIS Review 63/2009 5 sharp weakening of economic activity in the region, the Bank of Greece has called on banks to be prudent in their assessments of economic conditions in those economies so as to limit risk exposure. | Finally, in line with all EU governments, the Greek government has been implementing a plan for enhancing liquidity and strengthening banks' capital base. The Bank of Greece has been encouraging banks to make use of the plan. The challenges ahead The recovery from this crisis may be slow, but there will be a recovery. What, then, are the policy challenges that lie ahead? | 1 |
The platinum coin we launched last year has increased 16% in terms of platinum value. The gold coin we launched here in 2007 did even better, its value increasing by 42%. That “barbarous relic of a bygone age”, as Keynes dubbed gold, has not lost its shine over the centuries and may still be pressed into monetary service! | There are, of course, other possible outcomes. Continued low income growth, together with falling housing prices, would be an unwelcome combination and would make for a softer outlook for the economy. Some Australian households have high levels of debt, so there is a degree of uncertainty about how they would respond to this combination. So we are monitoring things closely. | 0 |
Similarly, it is also crucial to avoid a renewed round of competitive depreciation. In the long run, nobody would benefit, but everyone would suffer. The exchange rate policy has to be credible and in line with the development of the fundamentals. V On January 1, 1999, for eleven countries of the European Union, the single European currency will become a reality. | This will create a currency area with a population of almost 300 million. The euro, the future European currency, will start on an - all in all - positive economic basis, notwithstanding that unemployment is still too high. | 1 |
Concluding remarks Ludwig Erhard was prized for his courageous policies, which were based on the principles of free competition, flexible prices and open markets. On many occasions he stressed the importance of price stability. | In fact, the continued strength of consumption may explain why firms are still hiring even as growth slows, with permanent contracts accounting for the vast majority of the increase in employment this year. But clearly this could change if firms start to see the slowdown as more persistent. | 0 |
Real gross domestic product (GDP) dropped 5 percent between its pre-recession peak in the fourth quarter of 2007 and the trough in the second quarter of 2009; the drop in real disposable personal income was similar in magnitude. In addition, households lost an estimated $ trillion in home equity – half of the aggregate home equity that existed in early 2006. | The main reason for this is that because of the European sovereign debt crisis investors prefer investments which they consider to be particularly safe. In the end, it can be said that the ECB with its monetary policy has, above all, kept the interest rate low for very short-term loans. | 0 |
New ideas need to be encouraged; initial cost which will be typically high needs to be recovered; initial period risks and failures need adequate return and compensation. On the other hand, these compulsions will militate against consumer protection. As regulators, we recognise this dilemma. | Jens Weidmann: A central banker’s take on improving the euro area’s stability Speech by Dr Jens Weidmann, President of the Deutsche Bundesbank and Chairman of the Board of Directors of the Bank for International Settlements, at the Bank of Portugal, Lisbon, 10 December 2015. * 1. | 0 |
• From decline in aggregate supply to decline in aggregate demand →Aggregate supply>Aggregate demand? • Liquidity provision Deflation or low inflation? • Income compensation • Capital injection • Expansionary fiscal and monetary policy Chart 10 II. | Living with COVID-19 and Future Conduct of Monetary Policy COVID-19 and Prices Outbreaks of Infectious Diseases in the United Kingdom and Consumer Price Index y/y % chg., 5 year rolling averages, % 20 15 10 5 0 -5 -10 CY 1250 1350 1450 1550 1650 1750 1850 1950 Note: The event lines indicate the start of infectious disease epidemics such as the Black Death, the plague, and influenza in the United Kingdom. | 1 |
To date the contribution from the implementation of public works has been limited; it must be boosted. The curb on public expenditure must not penalize firms in the weakest parts of the country. New prospects must be created for research, for the application of advanced technologies in production and for the development of alternative energy sources. It is necessary to increase confidence. | This can be done by drawing up a credible and broadly supported economic policy to reduce the absorption of savings by the State, lower (in part through faster growth) the ratio of public debt to GDP, and charts a course for progress in the years to come. | 1 |
Jean-Claude Trichet: Enhancing the EU regulatory and supervisory framework – the Eurosystem’s perspective Speech by Mr Jean-Claude Trichet, President of the European Central Bank, at the 2007 Eurofi Conference “Achieving the Integration of European Financial Markets in a Global Context”, European Parliament, Brussels, 3 December 2007. | * * * Ladies and gentlemen, It is a great pleasure for me to introduce the discussion on the EU regulatory and supervisory framework at this year’s EUROFI conference. The issue is particularly topical at the present juncture for two reasons. | 1 |
The scheme provides guarantees on loans by banks to the sector in order to absorb some of the risk elements that inhibit banks from lending to the real sector. The activities covered under the scheme include manufacturing and agricultural value chains; SMEs, processing, packaging and distribution of primary products. | Similarly, if avenues for portfolio flows or equity-transfers from domestic to foreign investors are easily available and attractive, the flows under FDI defined in terms of adding to domestic production-capacities will tend to be smaller. | 0 |
A key element here is the pick-up in wages growth that I just mentioned. So, in summary, there has been progress in lowering unemployment and having inflation return to around the middle of the target range, and we expect further progress in these two areas over the next couple of years. | The other key point is that the progress we are making is only gradual: our central scenario is for a gradual pick-up in wages growth, a gradual lift in inflation, and a gradual reduction in the unemployment rate. While we might like faster progress, it is encouraging that things are moving in the right direction and are likely to continue to do so. | 1 |
Those offering advice, who usually (and rightly) point out to people the power of compound interest, 5/6 will surely see people concerned about that power being weakened through a long flow of commissions. One can easily imagine the fees for financial advice and managing funds being of more community interest than the fees on bank accounts. | The key parameters under IRB approach are PD (probability of Default), LGD (loss given default), M (Maturity) and EAD (Exposure At default). Under the FIRB, the banks calculate PD of their portfolio, while the other parameters i.e. LGD and EAD are prescribed by the regulator. Minimum PD is 0.03% for banks and corporates; no floor has been prescribed for sovereigns. | 0 |
But now the IMF is concentrating on identifying vulnerabilities such as excessive sovereign debt or balance sheet mismatches. Also, its stance on capital account liberalization has changed. Now the IMF advocates that member countries should first have the institutional capacity and a relatively strong financial sector with a good supervision before taking this major step of liberalization. | IMF members are advised to move to flexible exchange rates as a shock absorber as well as to implement fiscal policies that permit cyclical behavior in the case of a crisis. One important initiative is the Financial Sector Assessment Programs (FSAP) which are conducted together with the World Bank. | 1 |
The Plan targeted to achieve a high growth rate and recognised that the management of balance of payments was critically dependent on a sizeable improvement in earnings from exports and from invisibles. It conceptualised self reliance not merely in terms of reduced dependence on aid but also in terms of building up domestic capabilities and reducing import dependence in strategic materials. | However, several developments that put severe pressure on the 2 BIS Review 126/2006 balance of payments position during the Plan need attention. First, the CAD assumed a structural character in the 1980s. With underlying expansion in economic activities, exports and imports grew in tandem, keeping the trade deficit at a high level. | 1 |
In a market economy, even more than taxonomies and prudential rules, what really counts are relative prices, a key tool for allocating resources efficiently. As is now widely acknowledged, it would be quite difficult for a transition strategy to work without carbon pricing: without, that is, incorporating into the price of fossil fuels the damage that they cause to the ‘common good’,19 i.e. | 1HC .8 9 & ) $ $ 2 + ! 8 501 9 266? @+A 501 5290 7 1 37915 903? | 0 |
The compensation issue has, therefore, been at the BIS central bankers’ speeches 5 centre stage of the regulatory reforms. | We are now one of the fastest growing economies in Asia, with an annual GDP growth of more than 6.0 percent since 2012, notably exceeding the long-term average of 4.3 percent. Our external position continues to be favorable, with Gross International Reserves (GIR) of $ billion as of end-September. Inflation is benign and broadly within the BSP’s target range. | 0 |
When demand lies above the potential of the economy, there is a positive output gap. Currently, the negative output gap in Japan is about 2 percent, and during the process of closing this gap, growth will accelerate. | Thus, in conditions of subdued inflationary pressures, the National Bank of Serbia continued to provide additional support to economic growth and a sustainable rise in employment. As so far, monetary policy decisions will continue to be made in consideration of the effects of past monetary easing on the future inflation profile, as well as of the effects of other domestic and external factors. | 0 |
While RBI has cautioned the public through advertisements in the media, banks also need to be watchful. But an important question that begs an answer here is that in many of these cases money has been paid by the unsuspecting public into bank accounts from where the funds have been withdrawn. How did these accounts get opened in the first place? | One possibility is that new technologies, by lowering the barriers to workforce entry, could raise employment and labor force participation. | 0 |
Clearly, according to this methodology, a significant part of the decline in long-term inflation expectations has been due to the weakening in aggregate demand – the yellow area – at the time of the sovereign debt crisis, and again in 2018 on the back of the deterioration in the global growth outlook. | Technological innovation, and in particular the spread of information technology, has revolutionized the conduct of business over the past decade and resulted in rising rates of productivity growth. Accelerated productivity has been elevating standards of living, and it has been containing cost and price pressures, even as the economy operates at unusually high levels of labor resource utilization. | 0 |
The introduction of the euro, together with technological innovations and the deregulation, liberalisation and globalisation of financial markets, have led to even fiercer competition among the banks. An increasing shift from traditional forms of banking intermediation towards the securitisation of assets and liabilities does not mean that the “Anglo-Saxon market-oriented model” of a financial system is principally superior to a bank-oriented system. | Both systems have their inherent advantages and drawbacks. This is why the financial system in a particular economy is not based exclusively on one model or the other. Only the extent to which one financing alternative is preferred to others differs from one economy to the next. | 1 |
Equally, six months (so far) contributing to the conduct of monetary policy in South Africa is far too narrow a span to allow one to claim any first hand expertise in the distinctive circumstances of emerging market economies. | But the privilege of serving successively on the Monetary Policy Committees of two such different countries is given to relatively few central bankers and it has been fascinating to try to assess whether monetary policy really is different in Africa. What strikes one initially, in moving from a developed to an emerging market economy, is the remarkable similarity in the monetary policy process. | 1 |
The events during the last three months have shown once again that – in times of crisis – Europe can rise to the challenge. In particular, by agreeing on a common European Action Plan in October, the responsible EU and national authorities demonstrated their ability to live up to their responsibilities and to act in a swift and concerted manner. | Importantly, this boom has been shared by all countries in Africa, except for a few countries where armed conflicts took place. Admittedly, for some larger commodity-exporting African countries, such as Nigeria or Angola, the boom has been driven largely by the commodity super-cycle. We, in the Netherlands, are well aware that natural resources can be a mixed blessing for an economy. | 0 |
The ports of the old Hanse-cities Bremen, Hamburg, Lübeck, Rostock, Wismar and Tallinn all lie within the euro area – but so too do Helsinki, Rotterdam, Antwerp, Bordeaux, Cadiz, Porto, Marseilles, Genoa and Venice – to name but a few. The European single market is a vast economy. The euro area itself is a truly continental economy. | Most notably, the Treasury recently announced the Making Home Affordable program that will provide financial incentives to encourage lenders and servicers to refinance existing mortgages with new mortgages having lower payments, thereby helping at-risk homeowners to avoid foreclosure. | 0 |
There are four pertinent remarks that I would like to make concerning these figures. | First, the current share of the euro in global official reserves as calculated from the IMF statistics is higher than the share of the sum of all legacy currencies of the euro – notably that of the Deutsche Mark – in global official reserves at the end of 1998 before the euro was launched, which was about 18%. | 1 |
Achieving the FRBM target of zero revenue deficit by 2008-09 requires continued focus on containing expenditures, increase in tax revenues and reduction in tax exemptions. Revenue augmentation would critically depend upon improvement in tax/GDP ratio as non-tax revenue is set to decline in the coming years. In this context, the reversal of the declining trend in tax-GDP ratio is welcome. | Even banks with satisfactory capital adequacy ratios under Basel II became distressed. The expansion of excessive leveraging served as a factor in ramping up financial system instability. Secondly, in addition to strengthening the existing micro prudential regulations, this item on the agenda sets out to construct a framework of macro prudential regulation to deal with systemic risks. | 0 |
As markets change and products evolve, 2 BIS Review 65/2007 questions arise about how existing rules apply in new circumstances. We often address these matters with amendments that specifically target a particular issue, or by updating the interpretations published in the commentaries to our regulations. | That was the case with the Board's recent revisions to the rules governing electronic fund transfers, which addressed electronic check conversions and payroll card accounts. It was also the case with our recent amendments to the TISA rules addressing overdraft protection programs. As a matter of policy, the Board periodically conducts a comprehensive review of each regulation. | 1 |
Both Britain in the period before the First World War – from 1870 to 1913 – and the United States in the period after the Second World War enjoyed a so-called “exorbitant privilege” from being at the centre of the international monetary system [Meissner and Taylor, 2006]. The privilege stems from the possibility to issue low-interest domestic currency-denominated liabilities to finance higher-yield investments abroad. | The banks would, therefore, need to streamline and reorient their client acquisition and retention strategy. Finally, implementing the ICAAP under the Pillar 2 of the framework would perhaps be the biggest challenge for the banks in India as it requires a comprehensive risk modelling infrastructure to capture all the risks that are not covered under the other two Pillars of the framework. | 0 |
That being said, I must say that this new frontier of cryptocurrency brings up legitimate concerns that affect people… that affect the public. These issues are being looked into by the BSP and other financial regulators globally. One issue is private cryptocurrency as an investment option. Its value is volatile for starters. | Thus, we earnestly caution the public that before speculating or investing their hard-earned money in cryptocurrencies — as with any other type of investment — prospective investors should first know and fully understand the risks involved. Because people matter, we at the BSP, like SharePHIL, value investor education. | 1 |
The financial environment that we faced in the run-up to the crisis – and, by “we”, I mean the public, investors, counterparties, supervisors and regulators – was non-transparent, and the risks were getting more and more complex. And then it all went wrong, and many financial institutions had to be bailed out by governments. | Moreover, for issues related to the secondary markets, development of the infrastructure to provide information on market prices is currently under discussion to facilitate appropriate investment decisions by investors and determination of issuance environment by issuers. The Bank of Japan hopes that market participants will continue to take initiatives to strengthen market infrastructure, thereby improving stability and accessibility in the corporate bond markets. B. | 0 |
Why did we adopt specifically this set of measures? Our policy deliberations started off from three contingencies that could generate further downside shocks to inflation, and keep it low for a longer period than consistent with our medium-term horizon. | The forecasts of the majority of the Policy Board members are constructed as follows: each Policy Board member's forecast takes the form of a point estimate -- namely, the figure to which they attach the highest probability of realization. These forecasts are then shown as a range, with the highest figure and the lowest figure excluded. Source: Bank of Japan. | 0 |
Key features of the ECB’s communication policy are our Monthly Bulletins and the monthly press conferences given by the President of the ECB and myself. The press conferences usually directly follow the first Governing Council meeting of each month. During these press conferences, the President makes an introductory statement summarising the Governing Council’s discussions and conclusions before answering questions from journalists. | 11 Biais, B., J-C. Rochet, P. Woolley, “Innovations, rents and risk”. 12 Gennaioli, N., A. Shleifer, R.W. Vishny, 2012, “Neglected Risks, Financial Innovation and Financial Fragility” Journal of Financial Economics. 13 Beck, T. et al. (2012), “Financial innovation: The bright and the dark sides”. | 0 |
Such issues need to be addressed by the State Governments as this would impact on their credibility and market perception of their financial position. | At the same time, issues relating to the insistence of certain (re-financing) institutions for provision of State Government guarantees, irrespective of the financial viability of projects, perhaps on account of legal requirements, also need to be addressed at an appropriate forum. The State Government expenditures on education and health remain low at around 2.5 per cent and 0.7 per cent of GDP, respectively. | 1 |
The introduction of such a new regime would also raise the following questions, among others: • How to ensure that business models, size and systemic importance are part of the equation? • Can the bail-in of senior unsecured debt and uncovered deposits with the accompanying destabilising effects on financial stability be avoided? | The full implementation of all our monetary policy measures will provide the necessary support to the euro area recovery and bring inflation rates towards levels below, but close to, 2% in the medium term. Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic activity. | 0 |
And while sub-Saharan Africa is not directly involved in the present trade conflicts – in large part because it is not a strong direct competitor to US manufacturing producers, and also because its countries do not run large bilateral surpluses with the US – the region would still be vulnerable to a structural shift in global trade growth, as are most small economies with limited internal markets that rely in part on exports for development. | The view we have taken, pending further evidence, is that there is probably both noise and signal in the result. Hence, our assessment is that inflation is not quite as low as it might have looked six to twelve months ago, but nor is it accelerating to the extent a literal reading of the latest data might suggest. | 0 |
The banks for which the assessment identified capital shortfalls have been assigned targets that are largely in line with the plans they presented following the exercise. In recent years the need to observe more stringent capital adequacy requirements has affected the banks’ propensity to lend during a cyclical downturn. | Additional requirements for capital increases must be carefully calibrated so as not to undermine the signs of economic recovery. More generally, in the new context of Banking Union, a clear and stable supervisory review process in the spirit of Basel rules will make it easier for banks to draw up long-term plans, improve market transparency, and limit the potential pro-cyclical effects. | 1 |
A final issue which the recent global financial turmoil has brought to prominence concerns corporate governance. The experience of the conventional financial sector has been a reminder that financial institutions need high standards of corporate governance as they are entrusted with other people’s money. | Supervisory Colleges should, instead, provide a framework to enhance effective supervision of international banking groups on a consolidated and solo basis and inform decision making in this regard. | 0 |
In the meantime, the Financial Services Ombudsman is preparing a Strategic Plan which would give consideration to: 1. Removing the current limitations in the scope of services for addressing complaints that come under the Ombudsman; 2. Expanding the Ombudsman’s mandate to have oversight over new financial institutions – Credit Unions, the Unit Trust Corporation, Pension Schemes and Mutual Funds; 3. | Formalizing the Office’s consumer protection programs in line with the World Bank’s Good Practices for Financial Consumer Protection, and the G-20 High Level Principles for Financial Consumer Protection, which are useful reference points; 4. Resourcing the Office with the skill sets and talent consistent with the increased scope and expanded mandate. | 1 |
* * * We at the Bangko Sentral ng Pilipinas are happy to join you to witness the start of the consolidation of our ATM networks under the umbrella of the Bankers Association of the Philippines. This is the second significant program that we are launching today to move our financial system forward. | Two hours ago, the BSP launched the electronic trading platform for the BSP’s Reverse Repurchase Electronic Trading System. This time, it is the private sector that is launching its own milestone: the consolidation of our Bancnet and Megalink ATM networks. | 1 |
CFAL brings its financial management expertise and literacy promotion experience to the campaign. Blue Orchid Bahamas is providing creative direction and strategic communications support. The Central Bank recognizes the need to educate consumers more on personal finances, financial products and the economy, especially in the context of increasingly vocal concerns about the cost of banking services, and the ease of access to banking services. | Icelandic deposits (and assets) were carved out of the failing banks and moved to new banks, leaving the bulk of the banking system to be liquidated (Figure 2). Because some of the deposits were placed in branches of one of the Icelandic banks (not a subsidiary) the Icelandic deposit guarantee fund would have been liable to pay, but was unable to do so. | 0 |
Another such indication is our increased emphasis on defining the price stability goal more clearly. Already the FOMC has extended its forecast horizon to indicate where the Governors and Reserve Bank presidents would like to see inflation coming to rest over time. And we are continuing to discuss within the Committee whether an explicit numerical objective for inflation would be beneficial. | Under current circumstances, those benefits would include underscoring our understanding that our legislative mandate for promoting price stability encompasses both preventing inflation from falling too low in the near term and from rising too far as the economy recovers. Have we compromised our independence? No. | 1 |
Under the Payment Systems (REGULATION) Act 1998, any standards or access regimes that the Bank might propose to apply cannot be implemented without appropriate public consultation. In the case of the current review, the process of consultation and debate has been particularly extensive. | This has been partly because of the comprehensive nature of the review itself, and also because of the complementary role played by the Murray Inquiry in examining many of the same issues. The Bank first publicly indicated its intention to hold a review of this nature in its March 2014 submission to the Murray Inquiry. | 1 |
Conclusion Esteemed colleagues We are facing two challenges simultaneously: to reanimate economic growth, and to build a sustainable financial system that is fit for the 21st century. 4 BIS central bankers’ speeches I am convinced that our policies need to set their sights on a long-term solution – a lasting cure, if you will, not an endless supply of painkillers. | We should not turn a blind eye to the short-term challenges we face, of course. But what we must do is refrain from solutions that encourage excessive indebtedness. Finance will be an important ingredient in the cure for growth – but it will need to be of a better quality, not a greater quantity. | 1 |
The functioning of global economy in the past three decades suggests that the process of financial development and globalisation is susceptible to crisis. Nevertheless, the recurrence of financial crisis has not changed the positive relation between financial development and growth (Lipsky, 2009). | As the current crisis shows, the problems in finance and financial regulation need to be addressed at a national as well as global level to ensure that the benefits of financial developments become more widespread and enduring in nature. Thus, what is needed is not more regulation but sharper regulation of the financial system to ensure sustained financial development with stability. | 1 |
For example, loans originated at the peak of the boom with LTVs between 80–90 per cent and LTI multiples of 5–5.5 experienced default rates of around 23 per cent and 20 per cent respectively.3 This contrasts to loans issued originated prior to the peak with lower LTV and LTI ratios, which suffered default rates of around 12 per cent or less, that is, they were half as risky. | The risk of bubbles But that was then and this is now – surely we have learned our lessons and there is little risk of a repetition of the years of imprudent lending? Two factors suggest to me that we must always be on the lookout for risky lending. | 1 |
We also need structural reforms at the European level. And here, a lot has been done since the crisis broke out. First, the rules of the Stability and Growth Pact were tightened and a fiscal compact was adopted in order to restore confidence in public finances. Second, a procedure for identifying macroeconomic imbalances at an early stage was established. | Financial institutions have expanded and increased their range of activities; mergers have taken place both across sectors and across borders; and financial markets have become much more integrated at a global level. As a result, cross-linkages have become stronger and there is a greater risk that shocks are propagated through the financial system. Institutional developments are the second major change for central banks. | 0 |
By adopting this forward looking attitude any “double counting” of news, which may first influence our decisions via their anticipation and then again when they materialise, is avoided. After this substantial rate cut the remaining room for manoeuvre is very limited, potentially allowing for small steps only. | For example, the profitability outlook for banks remains weak as lower-for-longer interest rates dent margins and structural challenges persist. In addition, corporate sector vulnerabilities have increased, and higher corporate default rates are to be expected once policy support measures are withdrawn. This would lead to the quality of banks’ assets deteriorating, resulting in another challenge for these institutions in the coming period. | 0 |
With the global economy slowing significantly, and most of Europe and North America in recession; with China experiencing half the rate of growth than is customary and South East Asia, India, Australia and New Zealand experiencing significant downturns, or in recession, the expectation is that this must have a significant negative impact on Barbados and the Caribbean. | The questions that most of us want answered are: How badly is it likely to affect us? How long will it last and what can we do to mitigate its impact? What pre-emptive action can we take, collectively as a government or individually? | 1 |
First, everywhere in the world, whenever budgets are managed carefully, the costs of production are controlled and the social partners act with prudence, the reward is growth and job creation, even after the worse crisis since 1945. | Second, the euro area as a whole is faced with fewer problems than the United States or Japan, but it must take tremendous steps to strengthen its governance. Is speculation the big bad wolf that will devour the euro? The euro itself is not in question. The euro is a very credible currency that has done a remarkable job of ensuring price stability. | 1 |
We anticipate that the conduct of money market operations at longer maturities will not detract from our ability to influence the overnight rate. 10 Term repos will be useful to us from a policy perspective. They will help the Bank gather intelligence and analyze changes in liquidity conditions in short-term funding markets. | Large-scale financial institutions should take the lead, use digital transformation as the opportunity, and explore a new model of coordinated development where the development of large-scale institutions drives that of small-sized institutions and stronger 3/4 BIS central bankers' speeches ones support weaker ones through capacity output, technological transfer and collaboration within the sector, so as to bolster digital operations across the sector. | 0 |
The Young population of the market-economy world is then the sum of that of the Developed and of the Emerging area, about 2.14 billion. The Young populations of both regions want to trade their consumption goods of about 2.14 billion units for 100 million of PSV assets. | Without a doubt, the most momentous technical and strategic challenge was the introduction of the single currency, now more than five years ago. The very smooth transition that followed the adoption of the euro almost makes us forget the uncertainties, and sometimes even concerns, expressed before 1999 about the structural implications the euro might have on the euro area banking sector. | 0 |
Declines in the real value of the minimum wage, brought about by the combination of inflation and the fact that minimum wages are usually set in dollar terms, also affect the labor market. Some research suggests that this factor contributed to the relative decline in the wages of the least-skilled workers during the 1980s. | Economists have also pointed out that, although higher minimum wages increase the wages of those who remain employed, they may also lead to reduced employment of low-skilled workers. Thus, the net influence of the minimum wage on earnings and income inequality, as opposed to the inequality of observed hourly wages, is ambiguous (Neumark, Schweitzer, and Wascher, 2005). | 1 |
Over the past eight years, the National Bank of Serbia has demonstrated on its own example that, in terms of innovation and financial services, our country is on a par with the most advanced economies of the world, and sometimes even ahead of them. | Thanks to the state-of-the-art technology which we were among the first in the world to apply, our payment service users no longer need to go to a bank, as they can now make instant payments safely and quickly, at any time and any place, since the launch of the NBS IPS system in October 2018. | 1 |
While greater disclosure is not a panacea for international financial crises, adherence to the standards developed in the wake of the 1997 crisis would go a long way toward preventing future stresses and facilitating responses to those that do occur. Some have argued that an equally important issue is a disclosure standard for private participants in international capital markets, especially highly leveraged entities. | Making use of the NCBs' considerable experience in dealing with their national counterparties has been, and continues to be, a real benefit to the whole system. Ladies and Gentlemen, it would, however, be an incomplete account of the role of the NCBs in the Eurosystem to focus exclusively on implementation, or "downstream", activities. The NCBs also make a crucial contribution to decision-making further "upstream". | 0 |
As the experience with cooperative banking shows, a soft regulatory regime relative to scheduled commercial banks, be it in terms of governance or prudential aspects, trends to attract less than truly ‘fit and proper’ persons to capture such institutions. | The ECB’s accounts are audited by independent external auditors recommended by the ECB and approved by the Council (Article 27.1 of the Statute of the ESCB) and the competence of the European Court of Auditors (ECA) is limited to examining the operational efficiency of the management of the ECB (Article 27.2 of the Statute of the ESCB). [8] See in detail Mersch, Y. | 0 |
This rapid deterioration of the fiscal position is broadbased among euro area countries and is due to the economic downturn, additional revenue shortfalls and the fiscal stimulus measures adopted by many governments. In 2009 seven euro area countries are currently expected by the Commission to exceed the 3% of GDP reference value for the budget deficit. | Inflation forecast targeting has the advantage of being explicitly forward-looking. The Taylor Rule, in contrast, appears to be backward-looking, though the contrast is not as clear in practice as it might 3 BIS Review 110/1999 appear. Forecasts are exercises in processing information about current and past developments to yield anticipated future outcomes. | 0 |
Investors that provide funds in the CP and corporate bond markets and firms that provide trade credits to other firms also cannot take excessive risks in order to maintain their financial soundness. In other words, an adverse feedback loop may be initiated not only through bank loans, but also through practically every channel of financial activity, including financial markets and trade credits. | I am of course also very grateful for the kind words expressed by Mr. Eichel as regards my role in the euro cash changeover. However, it should not be forgotten that the success of the euro so far - in particular the success of the cash changeover should, at least in my view, be attributed first and foremost to the people of Europe. | 0 |
(Statement released after the MPM in Sept. 2016) 0 1 2 3 4 5 6 7 8 9 101520 30 40 residual maturity, year Note: In the left-hand chart, the JGB yield curve shows the most recent shape for when the Bank conducted an assessment for further effective and sustainable monetary easing on March 19, 2021. Sources: Bloomberg; Bank of Japan. | Chart 12 QQE with Yield Curve Control (2) (c) Transmission Mechanism QQE with Yield Curve Control Inflation-overshooting commitment Yield curve control Strengthening forward-looking expectations formation Stabilizing interest rates at low levels Nominal interest rates Inflation expectations － ＝ Real interest rates Adaptive expectations formation Observed inflation rates Boosting economic activity through improvement in financial conditions Inflation expectations ＝ ＋ Improvement in the output gap Chart 13 Japan's Economy under the Large-Scale Monetary Easing Unemployment Rate and Labor Force Participation Rate Inflation Rate and Output Gap 8 % y/y % chg. 4 7 s.a., % Output gap (left scale) 6 4 3 CPI (less fresh food and energy, right scale) 2 2 1 0 0 -2 -1 -4 -2 -6 -3 -8 CY07 -4 09 11 13 15 17 19 21 6 s.a., % Unemployment rate (left scale) Labor force participation rate (right scale) 63 62 5 61 4 60 3 59 2 CY07 58 09 11 13 15 17 19 21 Note: In the left-hand chart, CPI figures are Bank staff estimates and exclude mobile phone charges and the effects of the consumption tax hikes, policies concerning the provision of free education, and travel subsidy programs. | 1 |
Subsets and Splits