Policy Research in Macroeconomics

Financing the Green Transition – why we can afford it

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Last month Ann Pettifor gave a ‘Green Talk‘ in Bristol, organised by Climate Works. The five minute talk ourlines how we can afford to finance the Green Transition – watch below:

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One Response

  1. In the video, Ms. Pettifor makes it very clear that “If we create more credit than we’re capable of doing, we create inflation. If the central bank and the banks create too little credit, that contracts economic activity.”
    But if indeed her statement is correct, and a central bank’s mandate is to carefully monitor credit creation and contraction, then wouldn’t there be years where the central bank would be faced with conflicting mandates? One mandate saying “create more credit so that we can finance our carbon reduction program,” and a second mandate contrarily saying “destroy more credit so we can avoid inflation.”

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