Economies

Mohamed A. El-Erian in Bloomberg View on what the annual economic meeting in Jackson Hole, Wyoming should address. El-Erian talks about some of the important issues central bankers should address this weekend. "What can be done to put more people back to work? Long-term unemployment and youth joblessness remain big problems throughout the developed world, threatening to aggravate inequality (of income, wealth and opportunity) and permanently impair the ability of economies to grow and raise living standards. Some question whether the U.S. Federal Reserve can persist in its efforts to reduce unemployment without fueling inflation and financial instability. This will be the topic of Fed Chair Janet Yellen’s keynote speech." In addition to unemployment El-Erian also touches on the importance of tackling questions about the global role of central bank policies. "After a long period in which the world's largest central banks were all pushing in the same direction, they're now reaching the point where their policies will diverge. The Bank of England and the Fed are in the process of taking their foot off the stimulus pedal. The European Central Bank and the Bank of Japan will be going the other way. This multispeed world of increasingly contrasting policies could have big effects on markets and people far beyond the U.S., Europe and Japan. Jackson Hole offers a rare opportunity for central bankers to consider the international consequences in a direct and frank manner."