· Agustín Carstens Wiki · Bank for International Settlements WikiA story of tailwinds and headwinds: aggregate supply and macroeconomic stabilisation
Read full speech on bis.org ↗ContextSpeech at the Jackson Hole Economic Symposium; the BIS serves central banks worldwide and warns that supply has become less flexible.
Why it mattersCarstens argues that supply tailwinds have become headwinds.
Problems raised
- Supply-side tailwinds are turning into headwinds.
- Economies became fragile relying on stimulus.
- Inflation reached decades-high levels.
Solutions proposed
- Focus on aggregate supply.
- Pursue structural reforms.
- Reduce reliance on stimulus.