ECB faces tightening quandary; how climate risks affect bank lending
Wednesday 2 February 2022 – Vol.13 Ed.5.3
Commentary: ECB must tighten now to avoid sharper correction later
By Jürgen Stark in Frankfurt
Independent central bankers are not known for taking undue risks. But what happens when they misjudge sharply rising inflation rates and fail to live up to their mandate? The core mandate of the European Central Bank is to ensure a stable price level. However, the governing council has neglected increasing signs of a prolonged and unacceptably higher inflation that could become self-reinforcing.
Read the full commentary on the website.
Commentary: Four climate questions for central bankers
By Steven Rothstein in Boston
Central banks have an important role to play in protecting our financial systems. As the guardians of monetary policy and supervisory practices in their respective nations, they need to fortify our economic systems against the ever-growing threat of physical and transition-related climate risk. There are four important questions that central bank officials must ask themselves.
Read the full commentary on the website.
