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

By: STA Date: 2022. 12. 09. 11:41

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International cooperation and dialogue must be prioritized in solving global issues such as a sustainable, green transition – said economics professor Jeffrey D. Sachs, director of Columbia University’s Center for Sustainable Development, in his presentation at the Magyar Nemzeti Bank (MNB), according to a statement from the MNB. which was delivered to MTI on Friday.

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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.

Mihály Patai, the vice-president of the MNB, introduced the professor in his greeting, according to the statement, as a person with significant influence on global affairs, who helps the work of decision-makers on the international scene. Jeffrey D. Sachs is active in many research areas, including climate change and sustainability, the fight against extreme poverty, economic policy reforms, and pandemic crisis management. In 2005, Time Magazine listed him as one of the most influential people in the world. In September, the professor also participated in the Budapest Eurasia Forum 2022 event organized by the MNB, he recalled in the MNB’s material.

MTI