EU Taxonomy and ECB Monetary Policy: Moving Towards Centrally-Directed Green Capital Allocation?

Prominent ECB representatives have stressed the goal of the ECB to green its monetary policy, inter alia by moving from market neutrality to (green) market efficiency as guiding principle of monetary policy making. The paper explores how the EU taxonomy could become the benchmark for a monetary poli...

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Bibliographic Details
Published in:The Economists' voice 2023-02, Vol.19 (2), p.255-261
Main Author: Schnabl, Gunther
Format: Article
Language:English
Subjects:
E40
E44
ECB monetary policy
EU taxonomy
green capital allocation
Q54
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Summary:Prominent ECB representatives have stressed the goal of the ECB to green its monetary policy, inter alia by moving from market neutrality to (green) market efficiency as guiding principle of monetary policy making. The paper explores how the EU taxonomy could become the benchmark for a monetary policy of the ECB, which influences the credit allocation of commercial banks, with a negative impact on allocation efficiency and growth in the European Union.
ISSN:1553-3832
1553-3832
DOI:10.1515/ev-2022-0030