The Problem With “Green” Monetary Policy
Although there is increasing support for the idea that central banks should actively contribute to the fight against climate change, monetary policymakers have no mandate to do so, and for good reason. Tackling climate change is – and must remain – the responsibility of elected governments and parliaments.
FRANKFURT – As an alarming new United Nations report shows, climate change is probably the biggest challenge of our time. But should central banks also be worrying about the issue? If so, what should they be doing about it?