Template-Type: ReDIF-Article 1.0

Author-Name: Pal Peter Kolozsi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kolozsip@mnb.hu
Author-Person: pko336

Author-Name: Balazs Istvan Horvath
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: horvathba@mnb.hu

Author-Name: Judit Csutine-Baranyai
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: csutinej@mnb.hu

Author-Name: Veronika Tengely
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: tengelyv@mnb.hu


Title: Monetary Policy and Green Transition

Abstract: One of the biggest challenges in the coming decades is the achievement and
maintenance of environmental sustainability, regarding which the central banks
have also shown an increasingly active and supportive attitude in recent years.
A new monetary policy approach is emerging, but it is unclear how central banks
can participate in the green transition. In this paper, we briefly present the most
relevant issues in this regard, namely how price stability, which is the most important
objective of central banks, is affected by climate change and the green economic
transformation; what follows from the potential conflict between the goals of green
transition and price stability in terms of the green activity of central banks; and what
challenges are faced as a result by central banks that also have the sustainability
goal in mind.

Classification-JEL: E58, E61, Q5
Keywords: environmental sustainability, green finance, monetary policy
Pages: 7-28
Volume: 21
Issue: 4
Year: 2022
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-4-ove1-kolozsi-horvath-csutine-baranyai-tengely.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:21:y:2022:i:4:p:7-28