Coordination among major central banks 'almost impossible': AIMCo chair

Coordination among the world's largest central banks is nearly impossible, according to one fund manager, due to each of the three major global economic zones facing different circumstances.

Amid persistent inflation, the world's central banks have two options, Mark Wiseman, chair of the Alberta Investment Management Corp. (AIMCo), said in a television interview Wednesday.

The first option is to aggressively raise interest rates to control inflation, Wiseman said, which could put an economy into a “very deep and potentially prolonged recession.”

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.”