The Globe and Mail reports in its Friday edition that the Bank of Canada is exploring the idea of working more closely with Ottawa to co-ordinate interest-rate relief and government spending during economic slumps. The Globe's Barrie McKenna writes that emerging risks could make monetary policy less effective when the next shock hits, deputy governor Lawrence Schembri warned on Thursday. He said among the options to strengthen the bank's monetary policy framework is "more explicit" co-ordination of policy moves with government spending programs. He added, "The experience during the [2008-09 financial] crisis, when both aggressive monetary and fiscal stimulus were used, highlighted the benefits of simultaneous policy action." The proposal comes as the BOC lays the groundwork for the next scheduled five-year renewal of its 2-per-cent inflation target in 2021. Higher levels of household and government debt, a long-term decline in interest rates in the broader economy and slow growth are all making the job of central banks more difficult, Mr. Schembri said. He said, "Counter-cyclical fiscal policies, such as automatic stabilizers, and discretionary policies, such as infrastructure spending, are highly effective."