RIYADH—Global recession can be avoided if governments’ fiscal policies were consistent with monetary policy tightening, but likely there would be countries falling into recession next year, the International Monetary Fund’s managing director said on Monday.
In the context of monetary policy tightening, fiscal policy cannot stay idle because the cost of living crisis is hitting parts of society dramatically, Kristalina Georgieva said.
“We do need central banks to act decisively. Why, because inflation is very stubborn … It is bad for growth and it is very bad for poor people. Inflation is a tax on the poor,” Georgieva told Reuters in an interview during a visit to Saudi Arabia….