Global Economic Leaders Call for New Playbook

Global Economic Leaders Call for New Playbook Amid Pandemic and Geopolitical Upheaval in Jackson Hole

  1. Shift in focus: From inflation to new challenges like the pandemic and the war in Ukraine.
  2. Urgent call: Policymakers advocate for a new economic playbook.
  3. Main concerns: Frequent supply shocks, higher prices, and increased financial volatility.
  4. Inflation: Optimism exists, but victory is not yet declared.
  5. Interest rates: Likely to remain in restrictive territory for an extended period.
  6. Neutral rate of interest (R-star): Debate on its future level.
  7. Public debts: Warning issued about the difficulty of reducing them.
  8. Emerging economies: 60% are in or close to debt distress.
  9. Fiscal support capacity: Concerns raised about the ability to provide large-scale fiscal support in future crises.