What policy mix for the ecological transition?

Author(s) :
Esther Jeffers, Dominique Plihon

This article looks at how to make fiscal, monetary and prudential policies greener in order to address the massive financing needs and major risks associated with climate change.

Starting with the observation, based on the recent experience of the financial and health crises, that the separate and independent implementation of monetary and fiscal policies undermines their effectiveness, this study also shows the need for, and strategic role of, a green policy mix that ensures the coordination of fiscal, monetary, and prudential policies to meet the challenges of climate change.

Key Words: fiscal policy, monetary policy, prudential policy, ecological transition, green policy mix