The ecological transition requires a fundamental transformation of our economies, and with it, financial flows. Historically, the key macroeconomic institutions - central banks and ministries of finance - coordinated together and with other government ministries to steer private credit & finance markets to achieve structural economic change.
Today, the dominant policy narrative relies on the private sector to lead the pace and direction of the green transition. Policy interventions by financial and fiscal authorities are limited to mandate-relevant actions that support price and financial stability and constrained by concerns over public debt sustainability. Emerging market developing economies face huge fiscal challenges in implementing large-scale green investment. This session critically examined the dominant policy narrative in which the private sector dictates the pace and direction of the green transition and considered alternative macrofinancial arrangements, including global reforms, that could more effectively steer economies towards sustainable well-being.
1 окт 2024
