One of the most important events in any economist’s calendar is the Jackson Hole Economic Symposium. Held every year in Jackson Hole, Wyoming, and hosted by the Federal Reserve Bank of Kansas City, the focus of the annual symposia is to debate one key issue affecting world economies.
With both Mario Draghi, President of the European Central Bank, and Janet Yellen, Chair of the Board of Governors of the Federal Reserve System speaking at the event, economists, central bankers and financial analysts were keen to see how much insight both would give about their future economic plans.
Would the FED raise interest rates again in the face of low inflation and high asset prices? And how would Draghi look to recalibrate the monetary policy of the Eurozone with high unemployment in three of its four leading economies?
The outcome was considered one of little insight. Both Draghi and Yellen gave little away in terms of their monetary policy plans, instead opting to focus on the importance of free trade and financial regulation, leaving many economists still without clarity and with many unanswered questions.
This week’s Tweet of the Week is Jackson Hole related and comes from Jeroen Blokland, an investor at Robeco:
The Tweet links to a blog post by Blokland that gives a fascinating reflection on the last decade of loose monetary policies and the economic effects this has had, plus his views on what the summit might bring:
“While there could be a lack of monetary policy announcements during this year’s Jackson Hole summit – Yellen pretty much confirmed the start of balance sheet unwinding to be September and Draghi will try hard to prevent a Sintra-like experience – it’s likely a turning point in the history of central banks anyway”
The article is also peppered with some excellent charts, such as this one below, which shows the increase in central banks’ balance sheets and the total number of negative yielding debt that’s occurred since 2007:
Demonstrating brilliantly Twitter’s value for not only seeing breaking and developing financial news, but also insightful blogs, articles and opinions from financial professionals, it’s our Tweet of the Week.
Throwing some doubt over US growth, last week the U.S. Census Bureau Tweeted figures that showed US orders for manufactured durable goods (cars, furniture and home electronics) fell by more than expectations last month – down by 6.8% compared to a rise of 6.4% in June.
Posted on 9/1/2017 1:52:12 PMEarlyBird News