Countries do not have the space to maintain a very lax monetary policy, says IMF chief economist

Central banks do not have the space to maintain a monetary politics expansionary and low interest rates, the chief economist of the International Monetary Fund (IMF).

Gita Gopinath held at an event of the World Health Organization (WHO) on financing vaccines: “We are now in the phase where countries around the world simply do not have the space to maintain a very loose monetary policy, to keep interest rates extremely low.”

“We are seeing inflationary pressures building up around the world,” he said.

“We think of a situation that could make this pandemic last longer, there are longer supply disruptions that are putting inflationary pressures, and then we run the real risk of something that we have avoided so far, which is concerns about stagflation.” Gopinath added.



Reference-www.eleconomista.com.mx

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