Larry Summers says central banks should not abandon their goal to lower inflation to 2% and that it’s better to risk recession now than face a larger recession later. Inflation in the US is currently at 6.5%, and 10.4% in the EU. Central banks are raising interest rates in a bid to lower inflation. Larry Summers also said there are temporary reasons for relief but central banks have to stay the course. <i>Europe has not frozen. Recession has not come. China has adjusted its policies towards the world and inflation has decelerated. Those are all positive things and reasons why we should feel better than we felt a few months ago. But relief must not become complacency. Inflation is down. But just as transitory factors elevated inflation earlier, transitory factors have contributed to the declines that we have seen in inflation. And as in many journeys, the last part of the journey is often the hardest. And that's true with respect to a return to the inflation target. </i> Watch the video to learn more about what Larry Summers shared about inflation, recession, and more at Davos 2023.