Green Quantitative Easing
In a Green Quantitative Easing program, new money is created – literally out of thin air – and used to buy bonds, but in this case they would be bonds issued by a government-owned Green Investment Bank. Alexander Barkawi writes that policy makers should steer away from securities backed by car loans:
- “The current environment of ultra-low interest rates, together with significant asset purchases by central banks could offer a remarkable opportunity to channel more capital towards a low-carbon economy, and to pursue what several experts and policymakers have coined as “Green Quantitative Easing....Leading central bankers are increasingly clear that dealing with the financial risks of climate change is part of their job. Making sure that monetary policy is pointing in the same direction is a logical and necessary next step.”
- The Economic Failure Of Green Quantitative Easing, By Tim Worstall, December 4, 2018.