WASHINGTON — The International Monetary Fund’s newly appointed strategy director is calling on governments around the world to protect their economic credibility and keep inflation in check as global uncertainty continues to mount.
Christian Mumssen, the fund’s new director of strategy, spoke Wednesday at an event hosted by the Atlantic Council, pointing to a wave of major economic disruptions that have hit in rapid succession — including the coronavirus pandemic, surging costs of living, trade conflicts, and ongoing 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,” Mumssen said.
He acknowledged that the global economy has shown surprising strength in the face of these pressures, but cautioned that the scale of ongoing changes creates an unusually high level of unpredictability.
“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,” he said.
Mumssen stressed that governments need to stay focused on healthy public finances, managing debt, controlling inflation, and supporting employment and economic growth. He noted that price stability is particularly at risk due to frequent disruptions in global supply chains.
He also emphasized the importance of building resilience against supply shocks and geopolitical tensions, and urged nations to better manage the uncertainty that comes with today’s rapidly shifting landscape.
Mumssen called attention to the fast pace of technological change, specifically noting that the rise of artificial intelligence must be managed in a way that benefits all people, not just a select few.
He pointed out that what makes the current moment especially challenging is that multiple large-scale transformations are all happening simultaneously.
Mumssen encouraged nations to partner with the IMF in finding solutions, but expressed concern about the direction of global cooperation.
“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,” he said.
