She explained, according to a report published by the Financial Times and reviewed by Sky News Arabia, that volatile inflation may complicate efforts to control prices, but commitment to inflation targeting systems remains the best option, according to her.
And I warned Lagarde The global economy is now facing divisions similar to the pressures that led to the rise of “economic nationalism,” the collapse of world trade, and the Depression of the 1920s.
She said Christine Lagarde In a speech she delivered at the headquarters International Monetary Fund In Washington: “We faced the worst pandemic since the 1920s, and the worst conflict in Europe “The worst energy shock since the 1940s, and the worst since the 1970s.”
She explained that these disruptions, along with factors such as supply chain problems, may have permanently changed global economic activity.
She said in her speech, which came two days after the bank cut Federal Reserve interest rates by 50 basis points, sending U.S. stock markets to record highs, there are many similarities between the 1920s and the 2020s, pointing to “setbacks in global trade integration” and significant technological advances in both periods.
Although monetary policy in the 1920s made matters worse by pushing the commitment to the standard gold Leading economies to recession and banking crises, as she put it, Lagarde stressed: “We are in a better position today to address these structural changes than our predecessors.”
