Central Banks
ECB’s Nagel Warns Economic Fragmentation Risk Is Escalating
- Trade tensions could lead to greater inflationary pressures
- Bundesbank president speaks at economic conference in Tokyo
Joachim Nagel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European Central Bank Governing Council member Joachim Nagel sees the threat of a further fragmentation of the global economy, which could present central banks with new challenges in the form of higher or more volatile inflation.
“The first signs of geoeconomic fragmentation are becoming increasingly evident – and unfortunately, we may be on the brink of significant escalation,” the German central bank chief said on Monday in Tokyo. “This is a concerning development, and we should all strive to restore cooperation and free trade.”