Summers and Stansbury warn of ‘black hole’ as central bankers debate solutions
Economists say they hope for revolutionary thinking at Jackson Hole conference
Economists Larry Summers and Anna Stansbury warn monetary policy is being sucked into a “black hole”, and central bankers may not have the tools to escape. The intervention comes as the annual Jackson Hole conference is set to kick off.
“Black hole monetary economics – interest rates stuck at zero with no real prospect of escape – is now the confident market expectation in Europe and Japan, with essentially zero or negative yields over a generation. The United States is only one recession away
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