By Mathew Carr
Aug. 22, 2025 — As central bankers meet in Jackson Hole, here’s what they could do today to make the world a better place.
One
Acknowledge that it’s been increasing money supply, NOT WAGES, that has caused most of the inflation the past five years, and even beyond that (since the 2008 global financial crisis).
Two
In recognition of number one, push for lower interest rates immediately and globally, preventing continued rapacious behavior of middle-man banks, which are slow to pass on interest rate increases to savers …yet immediately pass on interest rate reductions to savers. Banks should be forced to raise rates for savers in lock step with central bank moves.
Three
Repair the monetary system to ensure poorer countries get access to finance at interest rates that don’t include paying a premium. That is, derisk lending to emerging nations, especially for things like climate protection and adaptation, nature revival. Blockchain and trade policy can be used to help encourage all national governments to act in favor of their people. Relatedly, central bankers should consider debt forgiveness for nature and climate protection. They should publish a strategy to help increase to $1.4 trillion a year climate finance from governments by 2035, as per agreement at UNFCCC climate meetings called Conferences of the Parties (COPs).
Four
Acknowledge that AI and robotics will hurt employment levels and require better safety nets to ensure inequality does not worsen to the point of societal unrest, across the world. This is one of the biggest challenges for money supply. Now that US President Mr Donald Trump won so much money for security at the NATO summit, there clearly IS money to prevent the inequality and climate crises from worsening. (See related Tweet, below, from central bank advisor Kathleen Tyson)
(more to come)
NOTES
https://www.kansascityfed.org/research/jackson-hole-economic-symposium/2025/
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