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Taming Inflation Without Hurting GDP Hard But Possible, IMF Says

  • Path to avoid recession getting narrower, chief economist says
  • G-20 Common Framework for debt needs to improve: Gourinchas
Pierre-Olivier Gourinchas
Pierre-Olivier GourinchasPhotographer: Stefani Reynolds/AFP/Getty Images

Central banks’ challenge to clamp down on inflation without engineering a recession is becoming more difficult but isn’t impossible, the International Monetary Fund’s chief economist said. 

“It’s a very, very narrow path, and I think it’s getting narrower and narrower,”  Pierre-Olivier Gourinchas said in a Twitter Spaces event Wednesday. “For countries like the US or the UK -- or the euro area, it’s going to become increasingly difficult, not impossible.”