Full Description
Sustainability matters increasingly affect and concern central banks around the globe, while the perception of what they are legally empowered to do may differ depending on the jurisdiction at hand. This volume systematically assesses the role of central banks in matters of sustainability from different perspectives in academia and central banking practice - some more favourable of a proactive engagement of central banks in sustainability policies, others more critical and vigilant of legal and legitimacy boundaries of such engagement. The methodological approaches the authors deploy include legal-doctrinal analysis, qualitative empirical analysis, and economic theory. The essays together provide a balanced assessment of the role central banks can and should play in sustainability matters, addressing legal aspects, legitimacy concerns and concerns of inter-institutional balance as well as economic and operational considerations. The book covers both developed and developing economies, where central banks are already facing the dire consequences of the warming climate.
Contents
Introduction; 1. What role for central banks in fostering sustainability? Kern Alexander and Seraina Grünewald; Part I. Sustainability as a New Objective of Central Banks - Interpreting Mandates: 2. The green mandate of the Bank of England Kern Alexander and Paul G. Fisher; 3. Environmental and social sustainability in the mandate of the European Central Bank David Ramos Muñoz and Elia Cerrato García; 4. Environmental and social sustainability in the mandate of the Federal Reserve Kern Alexander; 5. Reshaping mandates in emerging markets and developing countries: what role for central banks in countries strongly affected by climate change? Elsie Addo Awadzi; 6. Is net-zero central banking possible in the Caribbean? Nicole Chapman and Dorian M. Noel; Part II. Understanding and Managing Sustainability Risks: 7. Sustainable central bank balance sheets and operations Paul G. Fisher and Diarmuid Murphy; 8. Climate-related risks, systemic risks, and macroprudential regulation Pierre Monnin; 9. Central bank supervisory role: micro-prudential supervision and regulation of ESG risks Agnieszka Smoleńska; 10. Operationalising the climate change action plan of the European Central Bank - legal considerations Sarah Jane Hlásková Murphy; 11. Designing stress tests for sustainability risks Bernadette Chmelar, Christoffer Kok and Isabel von Köppen-Mertes; 12. Central bank digital currency and financial inclusion Marco Dell'Erba; Part III. In Search of Guidance: Market Neutrality, Policy Coordination and Democratic Legitimacy: 13. Capital allocation by monetary authorities: law, theory and practice Will Bateman; 14. The law and politics of independent policy coordination: fiscal and sustainability considerations in the European Central Bank's monetary policy Nik de Boer, Seraina Grünewald and Jens van 't Klooster; 15. On the democratic legitimation of climate change mitigation activities of independent central banks Fabian Amtenbrink.
