Research Archive

A diver swims among tall fronds of kelp as sunlight streams down from the surface
Research| August 7, 2024

Inflation as an Ecological Phenomenon

In a changing ecological and economic landscape, central banks must support the green transition and adapt inflation models to prevent persistent price instability.

Published by Positive Money
Two men work beneath a ground-mounted solar panel surrounded by brown hills in Afghanistan
Research| July 30, 2024

Green Monetary Policy to Combat Climate Change

Theory and Evidence of Selective Credit Control

Climate change threatens price stability, this paper explains how a green monetary framework, including selective credit controls, can reduce emissions and protect prices.

Published by Journal of Climate Finance
Homes flooded in Nicaragua
Research| June 25, 2024

From Financial Stability to Price Stability in Sustainable Central Banking

Climate change is driving price instability and central banks like the Federal Reserve should include climate in their price stability and inflation work, climate economists say. …

Published by Just Money
A stretch of cracked, dry earth seen from a low angle. The blazing sun hangs low in the sky and a small shrub sits near the horizon.
Research| April 18, 2024

Global Warming and Heat Extremes to Enhance Inflationary Pressures

Climate change may increase global inflation in nonlinear, persistent and varied ways, jeopardising price stability, say ECB and climate scientists.

Published by Communications Earth & Environment
An view from orbit of snow-covered mountains and clouds
Research| March 26, 2024

Climate Actions, Market Beliefs and Monetary Policy

Irrational market players wrongly perceive climate policy as a temporary shock and overlook the structural change it represents, with adverse impacts on prices and inflation.

Published by Journal of Economic Behavior and Organization
Flooding in a street in Steyr, Austria.
Research| October 12, 2023

How Climate Change Affects Potential Output

Climate change and the actions taken to tackle it will cause structural changes to the economy with “profound effects” on potential output, says this ECB report.

Published by European Central Bank
A line of huge wind turbine components in a factory, being worked on by a number of people
Research| July 27, 2023

Using Green Credit Policy to Bring Down Inflation

What Central Bankers Can Learn From History

Green credit policy is “necessary, justified and feasible” in the fight against inflation, and draws on longstanding central bank practices of shielding deflationary sectors from interest hikes, economists say.

Published by LSE Grantham Institute
A row of flagpoles bearing EU flags in front of a large office building.
Research| July 10, 2023

Structural Changes in Energy Markets and Price Implications

Effects of the Recent Energy Crisis and Perspectives of the Green Transition

The 2021-22 energy crisis was driven by record-breaking rises in wholesale gas prices and this paper discusses lessons that financial regulators can learn regarding price implications of the transition.

Published by European Central Bank
A sign displaying prices for unleaded petrol and diesel
Research| June 29, 2023

Options for the ECB to Neutralise the Negative Effects of Its Monetary Policy for the European Energy Transition

As volatile fossil fuel prices drive inflation, the Sustainable Finance Lab says the ECB should adopt dual interest rates for green projects or risk exacerbating price instability.

Published by Sustainable Finance Lab
Smoke pouring from the tops of two tall industrial chinmeys
Research| June 20, 2023

The CO2 Content of the TLTRO III Scheme and Its Greening

Researchers explore how to design green targeted longer-term refinancing operations that address the “carbon bias” of ECB refinancing schemes and support price stability.

Published by LSE Grantham Institute
An olive tree burns from the inside, patches of smouldering orange embers visible through the trunk
Research| May 16, 2023

The Asymmetric Effects of Weather Shocks on Euro Area Inflation

Weather shocks have asymmetric and non-linear impacts on inflation in the eurozone that introduce significant price volatility, according to research from the European Central Bank.

Published by European Central Bank

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