IMF strategy chief calls for price stability amid global uncertainty

Christian Mumssen, the fund’s new director of strategy, pointed to a series of major economic shocks in recent years, including the coronavirus pandemic, cost-of-living crises, trade frictions and wars in Ukraine and the Middle East.   “Technologically, artificial intelligence and digital finance are advancing at a speed few of us anticipated. And geopolitically, the post-war global order is giving way to a more fragmented, multipolar world,” he told an event at the Atlantic Council.   “The global economy has proved remarkably resilient in the face of these forces. But the sheer scale of what is under way creates an exceptionally high degree of uncertainty – and we should expect the unexpected.”      Mumssen said governments must pay close attention to sound public finances and debt, inflation, jobs and growth. He added that price stability is likely to be threatened by frequent supply disruptions. Governments should enhance resilience from supply shocks and global political tensions and work to manage uncertainty, he said.      Mumssen said it was critical to address fast-moving technical innovations, including to ensure the rapid AI transformation translates to inclusive growth.   The major difference in the current global financial situation is that large transformations are happening at the same time, he said.

“The problem is: just when massive structural challenges and a new technological revolution would call for greater international cooperation, the global governance system is fragmenting,” Mumssen added.