IMF's Georgieva says central bankers must be 'stubborn' in fighting inflation
International Monetary Fund Managing Director Kristalina Georgieva speaks on the High Level Seminar, Strengthening Global Collaboration for Tackling Food and Insecurity, during the G20 Finance Ministers and Central Bank Governors Meeting in Nusa Dua, Bali, Indonesia on Jul 15, 2022. (File photo: Reuters/Sonny Tumbelaka)
WASHINGTON: Central bankers must be persistent in fighting broad-based inflation, International Monetary Fund chief Kristalina Georgieva said on Wednesday (Sep 14), conceding that many economists were wrong when they predicted last year that inflation would ease.
"Inflation is stubborn, it is more broad-based than we thought it would be", she said, "And what it means is ... we need central bankers to be as stubborn in fighting it as inflation has demonstrably been."
If fiscal policy and monetary policy worked well, next year might prove less painful, she said. But if fiscal policy was not targeted sufficiently, it could become the "enemy of monetary policy, fueling inflation."
