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Central Banks and Climate Policy : Unpleasant Trade–Offs? A Principal–Agent Approach

Masciandaro, Donato; Russo, Riccardo - 2022

This paper focuses on the trade–offs that central banks would face if they were to start tackling climate change. Disruptive natural events can hamper growth and capital accumulation, thereby affecting price and financial stability – elements for which central banks are responsible. Yet, the...

Persistent link: https://www.econbiz.de/10013405241

Financial system stability, the timing of climate change action and the Federal Reserve

Schellhorn, Carolin D. - In: Journal of central banking theory and practice 9 (2020) 3, pp. 45-59

Timely and effective climate action is a precondition for the stability of the global financial system and for long-term, inclusive prosperity. Because the Federal Reserve and other central banks share responsibility with legislative and regulatory authorities and other experts for maintaining...

Persistent link: https://www.econbiz.de/10012306781

Taking up the climate change challenge: a new perspective on central banking

D'Orazio, Paola; Popoyan, Lilit - 2020

The awareness about climate-related financial risks is gaining momentum both in the policy and academic debates. The role of countries' institutional dimension and central bank governance structures in the adoption of green prudential regulation is, however, overlooked in the current discussion....

Persistent link: https://www.econbiz.de/10012240346

Monetary Policy for the Climate? A Money View Perspective on Green Central Banking

Vestergaard, Jakob - 2022

Central banks can potentially influence the investment decisions of private financial institutions, which in turn will create incentives towards green technology adoption and development of lower emission business models. This paper examines how monetary policies can be deployed to promote a...

Persistent link: https://www.econbiz.de/10014077436

Too Green to Be True? Forging a Climate Consensus at the European Central Bank

Deyris, Jérôme - 2022

In its strategy review, the European Central Bank's Governing Council unanimously decided to make climate change one of its priorities for the coming years. In this article, we try to understand how this change was achieved, and to what extent it represents a break from central banking as usual....

Persistent link: https://www.econbiz.de/10013405556

Climate challenges : central banks in the hot seat - rethinking monetary policy and educational activity

Kurowski, Łukasz - In: Journal of banking and financial economics 21 (2024) 1, pp. 29-41

examines the frequency with which central banks refer to climate issues in their inflation reports. Applying a text mining … approach to the analysis of 459 inflation reports published by 10 central banks from post-communist countries between 2013 and … 2023 confirms that climate issues make up a small part of inflation reports. On the positive side, the frequency of central …

Persistent link: https://www.econbiz.de/10015334624

CAROs : Climate risk-adjusted refinancing operations

Böser, Florian; Colesanti Senni, Chiara - 2021 - This Version: June 2, 2021

Policy makers have argued that markets are not pricing climate risk appropriately yet, which may lead to a misallocation of resources and financial instability. Climate riskadjusted refinancing operations (CAROs) conducted by the central bank are one possible instrument to address this issue....

Persistent link: https://www.econbiz.de/10012544313

Toward a green economy : the role of central bank's asset purchases

Ferrari, Alessandro; Nispi Landi, Valerio - 2023

We use a DSGE model to study the effectiveness of green-asset purchases by the central bank (Green QE), along the transition to a carbon-free economy driven by an emission tax, abstracting from price stability considerations. We find that Green QE helps to further reduce emissions, especially in...

Persistent link: https://www.econbiz.de/10013552671

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

Ferrari, Alessandro; Nispi Landi, Valerio - 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,...

Persistent link: https://www.econbiz.de/10012384477

Independence of central banks : the need for an urgent revamp!

Moutot, Philippe Pierre - In: Accounting, Economics, and Law : AEL ; a convivium 13 (2023) 2, pp. 133-167

Persistent link: https://www.econbiz.de/10014303405