If there is excessive inequalities, it becomes difficult to achieve sustainable growth, she added.
Further, Lagarde said there was a large backlash from several economists including from her own institution when she first talked about inequality in 2013 here at Davos in a plenary session.
“If the policymakers do not listen now, I don’t understand what can be done… There is no silver bullet response to excessive inequality,” she said, adding that turning back on globalisation will be a wrong approach.
