EconPapers    
Economics at your fingertips  
 

Monetary and financial policies for an ecological transition: An overview of central banks actions and some reflections on post-Keynesian insights

Romain Svartzman

Chapter 4 in Central Banking, Monetary Policy and the Environment, 2022, pp 90-110 from Edward Elgar Publishing

Abstract: Central bankers across the world have recently acknowledged that the physical impacts of climate change, just like the sudden and disorderly transition to a low-carbon economy, could create systemic financial risks ("Green Swans"). In order to manage these climate-related risks within the remit of their price and financial stability mandates, some central banks have started to explore climate-related prudential and monetary policies. While some scholars and civil society members call for greater efforts from central banks, including actions that would go beyond their existing mandates (e.g. 'green' quantitative easing), fewer have questioned the strategy of relying almost exclusively on central banks to address climate change. In this context, insights from post-Keynesian theory will be critical to factor in the inability of monetary and financial policies to generate a structural economic change, and the need for a much larger role for fiscal policy. This chapter therefore highlights how post-Keynesian theory can help manage climate-related systemic risks, but also why mitigating climate change and other ecological risks requires considering new questions (such as the potential limits to economic growth and the need for new institutional arrangements to govern our environmental commons) which still largely escape the post-Keynesian toolbox. Indeed, as we enter the Anthropocene, post-Keynesian theory will be useful only to the extent that it can contribute to building an analytical framework tailored to the new ecological reality.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800371958/9781800371958.00012.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:20017_4

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 Darrel McCalla ().

 
Page updated 2025-03-31
Handle: RePEc:elg:eechap:20017_4