Transformation requires a green monetary • Table.Briefings

By Nicolás Aguila and Joscha Wullweber

Joscha Wullweber and Nicolás Aguila: Central banks should „see themselves as agents of change“.

To combat inflation, the European Central Bank (ECB) has raised interest rates and reduced the money supply. However, this approach makes financing the decarbonization process more difficult. Monetary policy could be not only greener but also cheaper.

Faced with the highest inflation in over four decades, the central banks of major economies have gradually increased interest rates and initiated a policy of quantitative tightening (QT) since 2022.

Transformation requires a green monetary policy from central banks

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