Should central banks be involved in sustainable finance?

Research output: Contribution to journalArticlepeer-review

Abstract

Much of the academic literature on role of central banks argues for the adaption of monetary policy instruments to encourage “green” activities and for integrating climate-related risks into financial stability frameworks. I argue that using monetary policy to direct credit flows is a discredited policy and that central banks should focus on meeting the challenges that climate change poses to financial stability.
Original languageEnglish
JournalBancaria
Issue number4
Publication statusPublished - Apr 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 13 - Climate Action
    SDG 13 Climate Action

Keywords

  • Sustainable finance
  • central bank policy
  • banks
  • environment

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