From economics to ecology: the role of central banks as agents of the common good

Sophie Harnay, Laurence Scialom and Guillaume Vallet

Chapter 10 in Central Banking, Monetary Policy and the Common Good, 2026, pp 192-210 from Edward Elgar Publishing

Abstract: This chapter examines the changing political role of central banks, particularly in the context of recent financial and pandemic crises and global warming. Traditionally focused on price stability, central banks are now playing a crucial role in addressing societal challenges, including climate change. This chapter underscores the failure of traditional policies to address this global issue and the “tragedy of the horizon” that complicates effective action. In response, central banks can use their structural power to manage climate-related financial risks, such as through the Network for Greening the Financial System (NGFS). This chapter therefore argues that central banks can contribute to the common good by adopting new frameworks of responsibility. It concludes that by overcoming short-term political pressures, central banks are uniquely positioned to guide economies towards long-term stability, benefiting society, finance, and the environment.

Keywords: Central banks; Climate change; Common good; Global public good; Greening policies; Monetary policy (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035348299
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035348305.00017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:24020_10

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().