New IMF chief economist faces multiple pressing issues

Washington

JUST a few months into the job, the challenges are already piled high for the International Monetary Fund's new chief economist Maurice Obstfeld.

There's the Federal Reserve's plan to raise interest rates - which poses a deep test to economies worldwide. There's Europe's migration crisis. And not to be forgotten is Britain's threat to leave the eurozone when the region's economy is already frail.

That's all on top of slow global economic growth and climate change.

In an interview, Mr Obstfeld, an economic adviser to US President Barack Obama before being named to the IMF, spoke of a "nightmare scenario" in which various pressures conspire to weaken the economic bonds of Europe.

"I worry a lot about the strong trend in Europe to pull back from market integration," he said. "One factor is the refugee crisis, where there's a lot of pressure on open borders and workers' mobility," he added. "There is a lot of political pressure coming from the extremes, which could undo a lot of the economic integration that has occ…