By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – The International Monetary Fund (IMF) hosted the 25th Jacques Polak Annual Research Conference at its headquarters in Washington, D.C., on November 14-15, 2024. This year’s conference, titled “Reassessing Policy Tools for Current and Future Challenges,” brought together prominent economists and policymakers to address the pressing economic issues of our time, including inflation, fiscal constraints, and the effects of geopolitical tensions.
Moderated by Pierre-Olivier Gourinchas, the IMF’s Economic Counsellor, the event featured a distinguished panel of experts: Şebnem Kalemli-Özcan, Ricardo Reis, Isabel Schnabel, and Nathan Sheets. Together, they provided valuable insights into the global economy’s current challenges and the tools necessary to navigate them.
In his opening remarks, Gourinchas emphasized the lingering economic impacts of the COVID-19 pandemic and the rising tensions from global conflicts. He noted that while inflation has shown some signs of easing, it remains a persistent issue, especially in countries where prices are once again climbing. The panel’s central goal was to reassess how monetary and fiscal policy tools can be adapted to respond effectively to these ongoing challenges.
Şebnem Kalemli-Özcan, an economist from Brown University, focused on the global trade and financial linkages that drive economic fluctuations. She highlighted how these interconnections are reshaping domestic policy outcomes in an increasingly globalized world. Her analysis underscored the need for a deeper understanding of how international dynamics influence national economic strategies.
Ricardo Reis, a professor at the London School of Economics, delved into the limitations of monetary policy tools in the current environment. He stressed that central banks must carefully adjust interest rates to combat inflation while taking into account the complex relationship between monetary and fiscal policies. Reis also emphasized the role that supply shocks have played in shaping inflationary trends, urging policymakers to adopt a more flexible, nuanced approach to managing inflation.
Isabel Schnabel, a member of the European Central Bank’s Executive Board, provided a comprehensive view of financial stability and banking regulation. She emphasized the crucial role of central banks in maintaining market confidence, particularly in times of heightened uncertainty. Her remarks came at a critical moment, as global financial systems continue to face vulnerabilities that could trigger future crises.
Nathan Sheets, Global Chief Economist at Citigroup, shifted the focus to emerging markets, highlighting the unique pressures they face. While developed economies grapple with inflation and slow growth, many emerging markets are contending with additional challenges such as capital flight and currency instability. Sheets underscored the importance of coordinated global efforts to help emerging markets navigate these hurdles and avoid deepening economic disparities.
The conference closed with a lively Q&A session, where attendees and panellists discussed policy recommendations and potential strategies for future economic stability. The event served as a crucial platform for exploring how economic policies must evolve to meet current challenges while fostering collaboration among economists and policymakers worldwide.
As inflation and global instability continue to challenge economies around the world, the insights and discussions from the IMF’s Annual Research Conference will play a vital role in shaping the future of economic policymaking. ZIJ/22/11/2024
