MNB: according to the American economist, there is no green transition without cooperation

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In his presentation to the employees of the central bank and invited guests, the professor emphasized that it is also the responsibility of the central banks to ensure that the sustainability of the world economy can be realized. He highlighted that the supply shocks that have appeared in the real economy since the beginning of 2020 cannot be handled by the central bank, but they are able to maintain liquidity and financial stability. Climate change may cause an overwhelming economic shock on the international scene in the future, which central banks can help solve, he added. The central banks must create the foundations for the transition to a sustainable economy and prepare the financial systems of the nations for the green turn and the financing of the sustainable economy, he explained. As an example, he said that nations cannot achieve decarbonisation individually, in this case also international cooperation is needed. Therefore, the solution is not closure and economic separation, but the construction of green energy networks and mutually beneficial trade, he concluded.

MTI