| dc.description | consider selecting assets that will promote sustainability, including climate change mitigation and adaptation. During the 2008 financial crisis, central banks deployed unconventional means to rescue failing banks and insulate economies from depression. Their asset purchases have had strong social impacts, but traditionally, central banks have not explicitly factored social objectives into their
decisions or evaluated their impacts beyond the narrow monetary domain. The amount of global investment needed for sustainable energy, for instance, is manageable in the context of the global supply of potential capital. Social impact investing is consistent with a central bank’s mandate to maintain price stability. Central banks like to maintain their independence, but they are not independent
of the societies that created them or Mother Nature. Central banks that are not yet ready to move in this direction should at least incentivize bankers and asset managers to invest in, or lend to, climate mitigation activities and low-emission growth. Central banks should also support a financial transaction tax, which could fund a new or established global fund for climate mitigation or
adaptation or sustainable development more generally. | en_US |
