Post-Pandemic Greenness? How Central Banks Use Narratives to Become Green

Radu Șimandan (), Cristian Valeriu Păun and Bogdan Glăvan
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Radu Șimandan: Department of Economics, Polytechnic University of Bucharest, 060042 Bucharest, Romania
Cristian Valeriu Păun: Department of International Business and Economics, Bucharest University of Economics, 010374 Bucharest, Romania
Bogdan Glăvan: Department of Trade, Economic Integration and Business Administration, Romanian-American University, 012101 Bucharest, Romania
Authors registered in the RePEc Author Service: Radu Ioan Şimandan

Sustainability, 2023, vol. 15, issue 2, 1-28

Abstract: Suggested only a few years ago, green central banking has received a new impetus with the central bank interventions implemented in the wake of the COVID-19 pandemic. Several central banks, with the European Central Bank (ECB) and the Bank of England (BoE) being prominent examples, have stepped up their public communication on this issue in an effort to explain and justify their planned or ongoing policy actions. Carefully recorded and easy to find, these public communication messages are a rich source of insight into the process of monetary policy formation. In this article, we analyze the messages from two central banks, with the primary objective of identifying the narratives they use (if any) and describing the key features of these narratives, thus shedding new light on an ongoing process of policy change. A secondary objective of the article is to contribute to the growing literature related to the use of narratives in public policy by studying narratives in monetary policy through qualitative means, an approach that, to date, has received relatively little attention from scholars. To this end, we discuss two expectations related to the use of policy narratives derived from the literature. Thus, we hope to show how the two central banks devise and deploy narratives to help implement an unprecedented turnaround in monetary policy.

Keywords: monetary policy; monetary sustainability; central banking; green central banking; European Central Bank; Bank of England; low-carbon transition; central bank activism; policy paradigm shift; narrative policy framework (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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