FT Alphaville reported last night (and because of the importance of the issue I quote extensively):
We know central banks have the power to support asset classes and to move markets, and do so frequently in the name of financial stability.
But are there other social threats that could be stabilised or mitigated by central banks in a similar way?
For example, should central bank monetary policy be charged with a green agenda? Should central banks take it upon themselves to encourage and support the formation of liquid environmentally-focused markets?
That’s just one of the ‘unconventional’ areas the BoE’s One Bank Research agenda – revealed by the Bank on Wednesday – is keen to explore in a bid to stay ahead of fundamental change affecting the economy and financial stability in the market.
It was five years ago that Colin Hines and I created the idea of Green quantitative easing. It looks possible we may now get it.