Author information:
Pál Péter Kolozsi: Magyar Nemzeti Bank, Director; John von Neumann University, Associate Professor. E-mail: kolozsip@mnb.hu
Balázs István Horváth: Magyar Nemzeti Bank, Economic Analyst. E-mail: horvathba@mnb.hu
Judit Csutiné-Baranyai: Magyar Nemzeti Bank, Economic Analyst. E-mail: csutinej@mnb.hu
Veronika Tengely: Magyar Nemzeti Bank, Senior Economic Analyst. E-mail: tengelyv@mnb.hu
Abstract:
One of the biggest challenges in the coming decades is the achievement and maintenance of environmental sustainability, regarding which the central banks have also shown an increasingly active and supportive attitude in recent years. A new monetary policy approach is emerging, but it is unclear how central banks can participate in the green transition. In this paper, we briefly present the most relevant issues in this regard, namely how price stability, which is the most important objective of central banks, is affected by climate change and the green economic transformation; what follows from the potential conflict between the goals of green transition and price stability in terms of the green activity of central banks; and what challenges are faced as a result by central banks that also have the sustainability goal in mind.
Cite as (APA):
Kolozsi, P. P., Horváth, B. I., Csutiné-Baranyai, J., & Tengely, V. (2022). Monetary Policy and Green Transition. Financial and Economic Review, 21(4), 7–28. https://doi.org/10.33893/FER.21.4.7
Column:
Our Vision (Essay)
Journal of Economic Literature (JEL) codes:
E58, E61, Q5
Keywords:
environmental sustainability, green finance, monetary policy
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