With nearly a third of the UK population having received at least one dose of a vaccine, there is light at the end of the Covid-19 tunnel. Still in partial lockdown, challenges remain for both the public health and the economy. Chancellor Rishi Sunak’s 4 March Spring Budget announcement reflected these two realities. On one hand, the Budget extended and expanded expenditure measures aimed to insure and boost the UK economy this year and next. On the other hand, the Chancellor announced increases in both personal and corporate taxation in later years in an attempt to address the deficit that is likely to remain after the pandemic and to help stabilise public debt. The Guardian referred to this as the “spend now, pay later” budget1 and the Financial Times similarly called it theRead More »
Articles by Ilzetzki, Jia
Concerns about climate change have been central to the economic policy discussion in recent decades, with increasing urgency. More recently, debates have emerged on central banks’ role in mitigating climate change, or on increasing their awareness of their environmental impact (Brunnermeier and Landau 2020). The February 2021 CfM-CEPR survey asked members of its European panel of experts about measures the ECB could take to address the environmental impact of its bond-purchasing policies, in light of some suggestions that the bonds the central bank purchases overweigh industries that have negative environmental impact. The panel was also asked whether it would consider changing the ECB’s mandate to contain environmental targets.
Concerns about the ECB’s environmental impact