KOENIGSWINTER, Germany — International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that global finance leaders may need to become more comfortable with fighting multiple bouts of inflationary pressures.
“I think what we need to start getting more comfortable with is, that may not be the last shock,” she said, noting that she stopped viewing inflation as a “transitory” one-time shock when the Omicron COVID-19 outbreak took hold late last year. China’s zero-COVID policy, which has led to widespread lockdown in major cities, is unworkable due to highly contagious variants, but officials in Beijing are “digging their heels” in to resist altering it, she said, adding that its effects would be discussed at the meeting.
Ms. Georgieva said efforts by countries to shift their supply chains from maximum efficiency to increased resilience, will raise some costs, as there will need to be redundancy.