Summers and Stansbury warn of ‘black hole’ as central bankers debate solutions

Jackson Hole
Every August, central bankers convene at Jackson Hole in rural Wyoming
Shepard Humphries/Pixabay

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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