by Use ECB’s money-creation capacity to support environmental projects There is no limit to the amount of financial assets the ECB can buy. In principle, it could purchase all existing financial assets (all bonds and shares, for example) … There is also no restriction on what types of assets the ECB can buy … It could replace the old bonds with new ‘environmental bonds’, issued to finance environmental projects. The bottom line is that it is perfectly possible for the ECB to use the instrument of money creation to favour environmental investments without endangering price stability … Given the existential threat of the degradation of the environment, including climate change, the priority should be to use the ECB’s money-creation capacity towards the
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Lars Pålsson Syll considers the following as important: Economics
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Use ECB’s money-creation capacity to support environmental projects
There is no limit to the amount of financial assets the ECB can buy. In principle, it could purchase all existing financial assets (all bonds and shares, for example) … There is also no restriction on what types of assets the ECB can buy … It could replace the old bonds with new ‘environmental bonds’, issued to finance environmental projects.
The bottom line is that it is perfectly possible for the ECB to use the instrument of money creation to favour environmental investments without endangering price stability …
Given the existential threat of the degradation of the environment, including climate change, the priority should be to use the ECB’s money-creation capacity towards the support of environmental projects. This can be done without creating inflation.
So now we are eagerly awaiting the Krugman-Summers-Rogoffs denouncing this proposal as “dangerously wrong.” In the scientific world, it doesn’t matter who says what. So, if MMTers propose central banks to buy ‘green bonds’ that must be evaluated the same way as when a renowned mainstream professor at the LSE’s European Institute says so. Or …?