IMF chief warns there will be ‘people on the streets’ worldwide unless measures are taken to reduce inflation

“It’s important to remember that this exacerbated impact of multiple crises is already testing people’s patience and resilience. And if you don’t take action to support the most vulnerable, there would be consequences,” she told Christiane Amanpour from CNN.

“If we don’t bring inflation down, it will hurt the most vulnerable because an explosion in food and energy prices for those better off is inconvenience – for the poor people, tragedy. So we think of poor people first when we argue for a vigorous attack on inflation,” Georgieva said.

Central banks around the world have “no choice” but to raise interest rates in an effort to fight inflation, she added.

“Fiscal policy, if it’s going to be generous to help everyone, will actually get in the way of monetary policy, it would be the enemy of monetary policy, because you increase demand and that pushes prices back up, and then more needs to be done.” tightening,” the IMF chief said. “The crucial question before us is to restore the conditions for growth, and price stability is a critical condition,” she added.

Events that led to price increases — mainly the Omicron variant of Covid-19 and the Russian invasion of Ukraine — have “made inflation our worst enemy today,” the IMF chief told Amanpour.

“This year is tough, next year is harder. Why? By shock after shock after shock. In just three years: the pandemic (not over yet), the war, the Russian invasion that is pushing up energy and food prices, and then the The result is a cost of living crisis,” she told CNN.

Asked about an increase in support for far-right candidates in Italy and Sweden, Georgieva said she’s “not surprised to see people getting angry. They’ve been locked up in their homes for months, and months and months. Watch prices rise dramatically. And that’s why my appeal to policy makers is ‘be attentive’.”

“If we cannot protect the sense of survival and the sense of solidarity, this is what will happen,” she warned. There will be “people on the streets” worldwide unless measures are taken to protect the most vulnerable from inflation.

The IMF chief told Amanpour that events that have caused price increases — mainly the Omicron variant of Covid-19 and the Russian invasion of Ukraine — “have made inflation our worst enemy today.”

“If we cannot protect the sense of survival and the sense of solidarity, this is what will happen,” she warned.

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