Navigating the Fragmented Global Economy: Insights from Christine Lagarde and Central Banks.

European Central Bank president Christine Lagarde warned that the global economy is becoming more fragmented into competing blocs, leading to lasting instability resulting in lower growth, higher costs, and more uncertain trade partnerships. The pandemic, war in Ukraine, climate concerns, and deepening tensions between the US and China could make these problems more routine. Policymakers need to focus on securing resilient supply chains with allies and diversifying energy production, rather than simply using fiscal policy to supplement people's incomes, which is inflationary.