Strategy Boffins

Strategy Journal

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

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