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Whatever it takes to save the planet? : central banks and unconventional green policy

Ferrari, Alessandro; Landi, Valerio Nispi - 2020

We study the effects of a temporary Green QE, defined as a policy that temporarily tilts the central bank's balance sheet toward green bonds, i.e. bonds issued by firms in non-polluting sectors. To this purpose, we merge a standard DSGE framework with an environmental model. In our model,...