Rocky Mountain High Finance

Holders of Economics' Toughest Ticket Convene for a Fed Policy Dissection

JACKSON HOLE, Wyo.

It's nirvana for nerds. Oscar night for economic policy wonks. The most coveted invitation in the clubby world of central bankers, Wall Street analysts, academic economists and financial reporters who closely follow the U.S. Federal Reserve and its illustrious chairman, Alan Greenspan.

The envelope please: "The Greenspan Era: Lessons for the Future."

This is the title of the 29th annual economic symposium hosted by the Federal Reserve Bank of Kansas City, which begins here tonight.

"For those who are turned on by good economics and rigorous debate about economic policymaking, this is it ," said Mickey Levy, chief economist at Bank of America, as he prepared to attend the three-day meeting.

Forget Davos, the Swiss resort town where the elite World Economic Forum holds its annual gathering of more than 2,000 executives, politicians, power brokers and movie stars. The Jackson Hole conference is much more exclusive: Only about 100 participants are allowed each year (though each may bring a guest to the meals and receptions).

Last year, more than two dozen of those slots went to Fed policymakers and staff, and about a dozen more went to journalists. That left roughly 60 seats open to the scores of academic and government economists, analysts, investment bankers, reporters and others hoping to go -- either for the intellectual fruits or professional status to be gained.

This year, the lobbying was particularly intense because of the topic, according to several people familiar with the process who spoke on condition they not be identified. Greenspan just observed his 18th anniversary as Fed chairman and has indicated that he intends to step down next year after his term expires Jan. 31. He is planning to deliver his "Reflections on Central Banking" at the opening of tomorrow's meeting and to add some personal remarks at the closing session on Saturday.

Provocatively, former Fed vice chairman Alan S. Blinder, who clashed with Greenspan at times during their service together at the central bank, is scheduled to deliver the first paper, titled "Understanding the Greenspan Standard."

Many people who had hoped to attend the conference were disappointed -- or even angry -- about being left out.

The Kansas City Fed bank hosts the conference every year, picking the theme and compiling the guest list. Trying to pull strings through the Federal Reserve's Board of Governors in Washington or through the other regional Fed banks doesn't help. Scalpers would have a field day -- if there were any tickets for sale.

Kansas City Fed officials decline to discuss how the guests are chosen, but others said the bank tries to tailor the participants list to the topic, in this case inviting many current and former Greenspan colleagues. There were just far more people who wanted to be there than could possibly be included.