Wednesday, April 23, 2014
By A.N. Kini ‘13
Geopolitical risks cloud global recovery, says David Lipton '75, First Deputy MD at the International Monetary Fund. In a conversation with the Wall Street Journal, David discussed the key takeaways for the spring meetings of the IMF and World Bank, in which they grappled with "a host of issues that threaten to destabilize the global economy."
David gives an outlook on global recovery, inflation, the Ukraine crisis, the economic risks from sanctions against Russia, IMF governance reforms, and other risks to the global economy:
There’s some sense that the world economy is improving, and that has led people to be more calm about the situation…the risks have receded.
The greatest risk is complacency.
...the new set of risks are geopolitical risks. Most of the attention is to the question of what’s happening in the Ukraine, and the relationship between Russia and the U.S. But we’ve also pointed to the geopolitical risks in the Middle East, what’s happening in Syria, and geopolitical risks in terms of the relationship between China and Japan. So there are geopolitical risks that are a bit more on the radar screen than in past years, and given the fragility of recovery, they’re more salient than they might otherwise be.
Image: c/o International Monetary Fund
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