Overview
Christian Mumssen, the International Monetary Fund's new director of strategy, urged government officials on Wednesday to preserve credibility in fiscal and monetary frameworks to keep inflation under control while global economic uncertainty persists. Speaking at the Atlantic Council, Mumssen framed recent years as a sequence of major shocks that have strained economies and policy frameworks.
Recent shocks and current context
He cited a string of disruptive events that have affected the global outlook - the coronavirus pandemic, cost-of-living crises, trade frictions and wars in Ukraine and the Middle East. On the technological front, he noted rapid advances in artificial intelligence and digital finance. Geopolitically, he said that "the post-war global order is giving way to a more fragmented, multipolar world."
Resilience and uncertainty
Mumssen acknowledged the resilience the global economy has shown in response to these pressures, but he warned that the combination and scale of these shifts have produced "an exceptionally high degree of uncertainty - and we should expect the unexpected."
Policy priorities
He urged governments to maintain careful stewardship of public finances and debt while attending to inflation, jobs and growth. Mumssen warned that price stability is likely to be challenged by recurring supply disruptions, and he called for steps to enhance resilience to such shocks and to global political tensions.
Technology and inclusion
On technology, Mumssen stressed the need to respond to rapid technical changes so that the quick pace of AI-driven transformation contributes to inclusive growth. He described the current situation as distinct because multiple large-scale transformations are occurring simultaneously.
International cooperation at risk
He concluded with a caution on global governance: "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 said.
This account reflects Mumssen's remarks and the policy priorities he outlined at the Atlantic Council event.