Lagarde Warns Against Fragmenting World Economy

The video discusses the potential changes in global consumer prices, ranging from 5% in the short run to 1% in the long run. It highlights shifts in the central bank landscape, suggesting a move towards a multipolar world. The speaker emphasizes the importance of preparing for geopolitical fragmentation, quoting Ernest Hemingway to illustrate how fragmentation can occur gradually and then suddenly. The role of central banks, particularly the European Central Bank, in providing stability in an unstable world is underscored.

What does the speaker mean by fragmentation occurring in two ways?

What role does the speaker believe central banks will play in the current unstable environment?