The governor of the Bank of Canada is warning about persistent imbalances between major economic powers in a rare speech to a business audience overseas.
Tiff Macklem is in Paris today where he’s taking aim at global imbalances like overproduction from countries like China and outsized investment flows into the United States.
He says trade or fiscal imbalances aren’t inherently problematic and can be part of the normal functioning of global financial systems.
But he warns that when those imbalances have become too one-sided for too long, they can spill over with consequences for inflation, stock prices and relationships between countries.
Macklem says innovations like artificial intelligence and cryptocurrencies are exacerbating some of these imbalances and making them harder to track and regulate.
Protectionism might offer some short-term relief to countries grappling with these imbalances, but Macklem urges financial leaders to lean more into open trade and stronger co-operation across borders to build a more resilient global system.
This report by The Canadian Press was first published June 23, 2026.
