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Green money without inflation

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  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 88, Issue 2
  5. pp. 51–54

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Grauwe, P. Green money without inflation. Vierteljahrshefte zur Wirtschaftsforschung, 88(2), 51-54. https://doi.org/10.3790/vjh.88.2.51
Grauwe, Paul De "Green money without inflation" Vierteljahrshefte zur Wirtschaftsforschung 88.2, , 51-54. https://doi.org/10.3790/vjh.88.2.51
Grauwe, Paul De: Green money without inflation, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 88, iss. 2, 51-54, [online] https://doi.org/10.3790/vjh.88.2.51
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Green money without inflation

Grauwe, Paul De

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 2 : pp. 51–54

24 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.88.2.51
Language
English
Pages
4
Keywords

Author Details

Paul De Grauwe, London School of Economics, P.C.De-Grauwe@lse.ac.uk

Cited By

  1. The potential contribution of central banks to green finance

    Breitenfellner, Andreas | Pointner, Wolfgang | Schuberth, Helene

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 2 P.55

    https://doi.org/10.3790/vjh.88.2.55 [Citations: 21]

  2. Financial innovation for climate justice: central banks and transformative ‘creative disruption’

    Stephens, Jennie C. | Sokol, Martin

    Climate and Development, Vol. 16 (2024), Iss. 9 P.762

    https://doi.org/10.1080/17565529.2023.2268589 [Citations: 1]

  3. Whatever it takes to save the planet? Central banks and unconventional green policy

    Ferrari, Alessandro | Nispi Landi, Valerio

    Macroeconomic Dynamics, Vol. 28 (2024), Iss. 2 P.299

    https://doi.org/10.1017/S1365100523000032 [Citations: 14]

  4. Die Finanzierung unserer Zukunft

    Jenseits des Mantras der traditionellen Finanzierung: Bedeutung und Grenzen des konventionellen Ansatzes

    Brunnhuber, Stefan

    2023

    https://doi.org/10.1007/978-3-031-19625-6_2 [Citations: 0]

  5. Pandemic meltdown and economic recovery – A multi-phase dynamic model, empirics, and policy

    Semmler, Willi | Henry, Jérôme | Maurer, Helmut

    Research in Globalization, Vol. 6 (2023), Iss. P.100106

    https://doi.org/10.1016/j.resglo.2022.100106 [Citations: 4]

  7. Three tales of central banking and financial supervision for the ecological transition

    Oman, William | Salin, Mathilde | Svartzman, Romain

    WIREs Climate Change, Vol. 15 (2024), Iss. 3

    https://doi.org/10.1002/wcc.876 [Citations: 2]

  8. Handbook of Philosophy of Climate Change

    Central Banks and Climate Justice: The Case for Green Quantitative Easing

    Ferret Mas, Josep

    2023

    https://doi.org/10.1007/978-3-030-16960-2_126-1 [Citations: 0]

  9. Sustainable Macroeconomics, Climate Risks and Energy Transitions

    Climate Risks, Sustainable Finance, and Climate Policy

    Nyambuu, Unurjargal | Semmler, Willi

    2023

    https://doi.org/10.1007/978-3-031-27982-9_11 [Citations: 0]

  10. Les banques centrales au défi de la transition écologique

    Scialom, Laurence

    Revue économique, Vol. Vol. 73 (2022), Iss. 2 P.219

    https://doi.org/10.3917/reco.732.0219 [Citations: 3]

  11. Monetary architecture and the Green Transition

    Murau, Steffen | Haas, Armin | Guter-Sandu, Andrei

    Environment and Planning A: Economy and Space, Vol. 56 (2024), Iss. 2 P.382

    https://doi.org/10.1177/0308518X231197296 [Citations: 3]

  12. Financing our Anthropocene

    Upgrading the System

    Brunnhuber, Stefan

    2023

    https://doi.org/10.1007/978-3-031-23285-5_6 [Citations: 0]

  13. Central Banks and Climate Policy: Unpleasant Trade–Offs? A Principal–Agent Approach

    Masciandaro, Donato | Russo, Riccardo

    SSRN Electronic Journal , Vol. (2022), Iss.

    https://doi.org/10.2139/ssrn.4139124 [Citations: 0]

  14. Monetary and macroprudential policies: How to Be green? A political-economy approach

    Masciandaro, Donato | Russo, Riccardo

    Economic Modelling, Vol. 141 (2024), Iss. P.106931

    https://doi.org/10.1016/j.econmod.2024.106931 [Citations: 0]

  15. Great Green Transition and Finance

    Kemfert, Claudia | Schäfer, Dorothea | Semmler, Willi

    Intereconomics, Vol. 55 (2020), Iss. 3 P.181

    https://doi.org/10.1007/s10272-020-0896-y [Citations: 30]

  16. Can renewable energy mitigate the impacts of inflation and policy interest on climate change?

    Akan, Taner

    Renewable Energy, Vol. 214 (2023), Iss. P.255

    https://doi.org/10.1016/j.renene.2023.05.023 [Citations: 16]

  17. Financing Our Future

    Beyond the Mantra of Traditional Finance: Significance and Limits of the Conventional Approach

    Brunnhuber, Stefan

    2021

    https://doi.org/10.1007/978-3-030-64826-8_2 [Citations: 1]

  18. Greener and cheaper: green monetary policy in the era of inflation and high interest rates

    Aguila, Nicolás | Wullweber, Joscha

    Eurasian Economic Review, Vol. 14 (2024), Iss. 1 P.39

    https://doi.org/10.1007/s40822-024-00266-y [Citations: 9]

  19. The effects of a green monetary policy on firms financing cost

    Bacchiocchi, Andrea | Ille, Sebastian | Giombini, Germana

    Journal of Economic Interaction and Coordination, Vol. 19 (2024), Iss. 4 P.727

    https://doi.org/10.1007/s11403-023-00400-0 [Citations: 0]

  20. The European Central Bank – A Review Essay by Martina Metzger

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 90 (2021), Iss. 1 P.143

    https://doi.org/10.3790/vjh.90.1.143 [Citations: 0]

  21. De-risking of green investments through a green bond market – Empirics and a dynamic model

    Braga, Joao Paulo | Semmler, Willi | Grass, Dieter

    Journal of Economic Dynamics and Control, Vol. 131 (2021), Iss. P.104201

    https://doi.org/10.1016/j.jedc.2021.104201 [Citations: 38]

  22. Fossil Fuels in the European Union

    Credit and Investment Policies of Banks Towards the Fossil Fuel Sector as Part of the EU's New Energy Governance

    Korzeb, Zbigniew | Niedziółka, Paweł

    2024

    https://doi.org/10.1007/978-3-031-56790-2_11 [Citations: 0]

  23. Handbook of the Philosophy of Climate Change

    Central Banks and Climate Justice: The Case for Green Quantitative Easing

    Ferret Mas, Josep

    2023

    https://doi.org/10.1007/978-3-031-07002-0_126 [Citations: 0]

  24. Distributive Justice, Political Legitimacy, and Independent Central Banks

    Ferret Mas, Josep

    Res Publica, Vol. 30 (2024), Iss. 2 P.249

    https://doi.org/10.1007/s11158-023-09619-x [Citations: 0]

References

  1. Galbraith, J., (2019): Financing the Green New Deal in Europe, Social Europe, February, https://www.socialeurope.eu/financing-the-green-new-deal.  Google Scholar
  2. Gross, M., P. Loungani, and W. Semmler (2019): Unconventional Monetary Policy in a Non-linear Quadratic Model, unpublished, International Monetary Fund and New School of Social Research.  Google Scholar
  3. Jourdan, S., and W. Kalinowski (2019): Aligning Monetary Policy with the EU’s Climate Targets, Veblen Institute for Economic Reforms, Positive Money Europe, April.  Google Scholar
  4. Piketty, T. (2018): Manifeste pour la Démocratisation de l’Europe, Un Budget pour l’Europe, http://tdem.eu/le-budget/.  Google Scholar
  5. Varoufakis, Y. (2018): Our plan to revive Europe can succeed, in The Guardian, https://www.theguardian.com/commentisfree/2018/dec/13/plan-europe-macron-piketty-green-new-deal-britain.  Google Scholar

Abstract

Summary: The ECB has announced that when government and corporate bonds come to maturity in the context of its QE-program, new bonds will be bought in the market so as to keep the money stock (money base) unchanged. This creates a “window of opportunities” for the ECB. It could replace the old bonds with new “environmental bonds”, i. e. bonds that have been issued to finance environmental projects. In doing so, the ECB would not create new money. Given the existential nature of the degradation of the environment, including climate change, the priority should be to use the ECB’s money creation capacity towards the support of environmental investments. This can be done without creating inflation.

Table of Contents

Section Title Page Action Price
Paul de Grauwe: Green money without inflation 51
Summary 51
Zusammenfassung 51
References 54

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