Markets in the grip of Jackson Hole symposium

Rio Olympics has just ended. But an intellectual Olympics begins this week in Jackson Hole—the Olympics of global central bankers. Each year, finance ministers, apex bankers, economists, academics, visionaries and policymakers look forward to participating in the biggest monetary policy summit.

Leaders gather in Kansas City Fed’s region of Jackson Hole, Wyoming, in the United States to take a long term perspective on monetary issues rather than solving issues at hand. They deliberate on future emerging issues and trends that help in setting up policies and targets for the global economy.

Not everyone can attend the three-day programme held annually in the late August. The number of participants has been limited as thought-provoking discussions are an important part of the symposium. Media seats are also regulated, though requests come from many countries. And all of them pay to attend the session.

But those who have been rejected need not be disheartened. The proceeding, papers and discussions will be made available on the official website www.KansasCityFed.org some time later. Viewers have access to important papers, commentaries and discussions from past Symposiums, as well.

This year, the conference is from August 25 to August 27.

The topic for the symposium 2016 is: “Designing Resilient Monetary Policy Frameworks for the Future.” Discussions will be focused on the future of monetary institutions—like the central banks—in view of past experiences, daring the currently held principles.

The pinnacle of the summit is on Friday when the Federal Reserve chair Janet Yellen addresses the conference. The speech could provide some indication to the next Fed monetary policy scheduled for September 14. The Wall Street will be curiously watching Yellen's speech as market is in the grip of any Fed chair indication at the symposium.

Brief History
Over the three decades, the symposium has gained importance. In the past, some of the ideas put forward by the meet were rejected, but later turned out to be reality. Likewise the economic crisis of 2007-10 was foreseen at Jackson Hole. Markets take the symposium outcomes seriously as they can possibly influence currency markets and stock exchanges everywhere.

Except for four years in the beginning, the Federal Reserve Bank of Kansas City has continuously hosted the symposium at Jackson Hole. The event was held at various locations from 1978 to 1981. From 1982 onwards, Jackson, Wyo., one of America’s most beautiful national parks, became the permanent venue of the world’s top economic symposium.

Topics, too, have broadened along with this.

The Money Museum
Visitors to Jackson Hole have another attraction: a money museum operated by the Kansas City Fed. The museum offers a total understating of the Federal Reserve System. The visitors have access to one of the largest vaults, which keeps millions of dollars. During the one hour guide tour, visitors can see Harry Truman coin collection and can raise gold bars in their hands. The interactive exhibit is a delight for money enthusiasts.