But monetary policy is not the right tool for addressing a decline in production that reflects a change in consumer preferences, away from fossil fuel-driven cars and towards electrical vehicles. Central banks will face such identification issues more often in the future. And they will need to think about how they incorporate green and sustainable considerations in their investment behaviour.
It is, of course, very apt to discuss this important topic at the embassy of a country who so proudly gave the world the ideas of liberty, equality and fraternity. In Delacroix’s famous painting, it is a woman, Liberty, leading the people in pursuit of those ideals.