The markets are quite, not just because its August and many investors are on leave but also in anticipation to Jackson Hole meeting. So, why is this tiny place usually known for its winter ski complex, such an important economic event ?
Many of the world’s most powerful financial players and policymakers will gather for three days in Jackson Hole, a mountain resort in Wyoming. It goes back to 1978, when the first meeting of such kind was held and since then it offers a chance for central bankers, finance ministers and academics to talk about the world economy in a public but informal setting. The event is formally the Federal Reserve Bank of Kansas City’s “Economic Symposium”. All 12 of the Fed’s district banks organize research conferences. So how did Jackson Hole become Davos for central bankers?
The first one, on “World Agricultural Trade: The Potential for Growth”, took place in Kansas City, Missouri, where the bank is based. In 1982 the conference moved to Jackson Hole (which is in the Kansas City district) and persuaded Paul Volcker, then chairman of the Fed and an avid fly-fisherman, to attend. In a textbook case of network effects, Volcker’s regular attendance attracted oth…
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