Article published in La Revue Française d’Économie
This paper examines the contribution of SFC modelling to the definition of a green policy mix that would facilitate the implementation of a climate transition policy. First, traditional SFC models are used to assess whether unconventional monetary policies can increase the budgetary leeway and contribute to finance the high cost of the climate transition. Second, the analysis is extended to national or world SFC models that integrate the environmental dimension. Some of the various aspects of a green policy mix (green QE, selective credit policy, fiscal measures, active public spending) are discussed in this framework.
