Global Inflation Fight ‘Has Been Largely Won’ Without Recession, Says IMF Chief Economist

The global fight against inflation “has been largely won” without triggering a significant economic downturn, says International Monetary Fund (IMF) chief economist Pierre-Olivier Gourinchas. IMF officials published the October edition of the World Economic Outlook, forecasting that headline inflation will cool to 3.5 percent by the end of next year, slightly below the two-decade average before the pandemic. Lowering inflation while averting a global recession has been “a major achievement,” Gourinchas noted. Therefore, because inflation is inching closer to advanced economies’ 2 percent target, major central banks now can pursue monetary easing. The IMF chief economist said that while much of the disinflation has been attributed to the unwinding of the supply and demand shocks and improvements in labor supply, monetary policy has also “played a decisive role in keeping inflation expectations anchored.”...