Central Bankers Face Up to Changing Global Economy With No Playbook at Jackson Hole

At the Jackson Hole meeting, global officials expressed concern over the new challenges brought by the pandemic and Ukraine war, disrupting established economic relationships. They called for a revised approach to address persistent price pressures, market volatility, and the global debt problem, particularly in emerging economies. Despite confidence in battling inflation, officials warned against early victory declarations and highlighted the need for new models to address sector-specific shocks. There was also doubt about the capacity to provide significant fiscal support in another large shock, indicating a precarious position.