Central banking for a social-ecological transformation

Louison Cahen-Fourot

No 40, Ecological Economic Papers from WU Vienna University of Economics and Business

Abstract: In the perspective of a social-ecological transformation, this article sets the discussion on the future of central banking back in the context of ecological limits to growth. It first surveys the literature on proposals to introduce sustainability in central banking. It then draws from the conceptualization of money as a social relation to discuss central banks’ mandates, independence, governance and instruments. This article therefore adopts a normative stance. Central banks should be politically accountable with a renewed governance and committees composition. In line with the endogenous nature of money, their mandate needs not to include price stability and should focus on fostering full employment, social cohesion and relevant economic development within the ecological limits of the planet. Three policy instruments are then discussed to shift the nature of central banks’ operations responsive to prescriptive: differentiated target interest rates, credit control and qualitative tightening in assets purchasing programs.

Keywords: monetary policy; central banking; sustainability; social-ecological transformation; post-growth; endogenous money (search for similar items in EconPapers)
Date: 2021-06-30
New Economics Papers: this item is included in nep-cba, nep-hme, nep-mac, nep-mon and nep-pay
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://epub.wu.ac.at/8204/ original version (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://epub.wu.ac.at/8204/ [308 PERMANENT REDIRECT]--> https://epub.wu.ac.at/id/eprint/8204 [302 FOUND]--> https://research.wu.ac.at/en/publications/cda7db4d-0c62-4aad-85a1-0ee7cafca66f)

Related works:
Chapter: Central banking for a social-ecological transformation (2022)
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:wiw:wus045:8204

Access Statistics for this paper

More papers in Ecological Economic Papers from WU Vienna University of Economics and Business Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by WU Library ().