As a matter of fact, a recent notable example of monetary policy coordination among major central banks took place at the onset of the global crisis of 2008, when the world’s four leading central banks (the Federal Reserve, the ECB, the Bank of England and the Bank of Japan) took coordinated action, affirming the need to go beyond traditional ways of conducting monetary policy in order to continue to provide liquidity to the financial system and prevent a collapse of transactions and a global crash.
The situation changed in 1994 when China began to have twin surplus, and intensified following China’s accession to the WTO in 2001, as current account surplus widened markedly and became the major contributor to BOP surplus.