Coordination among the world's largest central banks is nearly impossible, according to the chair of one of Canada’s largest institutional investors, due to each of the three major global economic zones facing different circumstances.
The other option is to accept longer-term inflation above the current two per cent target held by many central banks. However, Wiseman said when inflation is entrenched in an economy it causes “a whole other set of problems.” “You've obviously got North America which has an inflationary problem,” he said, adding that the Bank of Canada and U.S. Federal Reserve are likely to continue aggressive interest rate hikes.
Coordinate steps between major central banks
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