At the regular meeting in Jackson Hole, Wyoming, heads of the globe’s leading central banks spoke in favour of reforms of the post-crisis period, along with that debating over the roots and ramifications of populist trends that have largely reshaped the political structure in Europe and across the pond.
The discussion wasn’t centered on monetary policy. But what was said about it by the Fed and ECB is that further actions will be focused on gradual unwinding stimulus at the time when global growth gains momentum.
Hot topic of the gathering was the ups and downs of free trade, and the bankers voiced their total support for the safety net developed through the years since the financial crash of 2008, which could be dismantled by the U.S. President. Brexit, presidency of Trump, as well as controversial presidential candidate Marine Le Pen greatly affected the agenda. The leaders slammed populist approach.
Fed’s Janet Yellen spoke to the staunch defense of castigated financial rules, as Europe’s Mario Draghi pointed to the dangers of protectionism. The discussion also dealt with the ways to neutralize globalization’s distributional issues so that it doesn’t harm the existing subdued global growth.