European Central Bank President Christine Lagarde said on Friday that deep transformations in the global economy could lead to inflation volatility for years to come, complicating efforts to control prices. However, she emphasized that commitment to inflation targeting remains the best option.

Lagarde warned that the global economy faces divisions similar to those that led to “economic nationalism” and the collapse of global trade in the 1920s.

In her speech at the International Monetary Fund in Washington, she noted that the world has experienced the worst pandemic since the 1920s, the worst conflict in Europe since the 1940s, and the largest energy shock since the 1970s, resulting in permanent changes to global economic activity.