Rising risks to the inflation outlook and rapidly changing views about the likely pace of monetary policy tightening have been dominant themes affecting financial stability. The latest Global Financial Stability Report (GFSR) says the Russian invasion of Ukraine has also exerted a material drag on the global recovery from the pandemic and increased financial vulnerabilities. Fabio Natalucci heads the GFSR and Global Financial Markets Monitoring. In this podcast, he says with inflation now at a multi-decade high and tightening financial conditions, it will take time for investors and policymakers to adjust to the new world. Read the full report at IMF.org/GFSR Read the blog at blogs.imf.org