BOC Gov: Canada, EU Should Deepen Trade
Bank of Canada Governor Macklem says Canada and EU should deepen open trade as US pulls back, criticizing tariffs and currency devaluation
Must make investment outside the US more attractive - - China must consume, US must save, Europe must invest - - Imbalances are growing as China’s outward flow of capital continues, and the United States has been the biggest destination of capital - - US trade deficit matched by large foreign capital inflows - - Concerned about lack of global crypto oversight - - Leveraged trading strategies of hedge funds and non-bank financial intermediaries may be making this core market more fragile - - We can address imbalances deliberately, or let unwind ‘in ways we can’t control’