Several NGOs including Positive Money Europe are demanding that the central banks’ green finance forum step up their work to make sure emergency measures taken by central banks against Covid-19 do not harm long-term climate action.
The Eurogroup confirmed the highly needed suspension of fiscal constraints on Eurozone governments. But allowing countries to spend more does not mean all of them can afford to spend more.
By refusing to affirm the ECB’s willingness to “close spreads” on the Italian bonds market, Christine Lagarde’s mistakenly caused major indignation among citizens, politicians, and financial markets. But while Lagarde’s ambiguous comments were devastating, they mostly reveal the Eurozone’s flawed architecture.
The ECB’s primary mission is to maintain consumer price stability, but while doing so it omits an important item of household consumption: the cost of housing. It is now time to fix this strange exception which induces biases in the design of the ECB’s monetary policy.
The recent declarations of new European Central Bank president Christine Lagarde on the possible role of her institution in the fight against climate change have revived pushbacks from central bankers and financial commentators against “green quantitative easing”. However, the critics have often misrepresented what campaigners actually want.
The team of Positive Money Europe has compiled a list of books on monetary policy, banking and finance which are definitely worth adding to your reading list.