The central bank conference at Jackson Hole usually brings news about the Federal Reserve, but this time round it was the same story from Chair Yellen that the unemployment rate isn't everything. Instead, ECB President Draghi seized centre stage. By pointing out that the participation rate explains much of the difference between US and Eurozone unemployment, Draghi made clear that monetary policy is no longer about just inflation and unemployment.
About the authors
Economist Insights is written by Joshua McCallum and Gianluca Moretti. Joshua has been working at Global Asset Management with the title of Senior Fixed Income Economist since 2005. Prior to this, he worked at the UK Treasury as a macroeconomist. Gianluca joined Global Asset Management in 2010. Prior to this he worked at the Italian central bank.
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