The first lesson that can be drawn from the last ten years is the importance for an economy like the euro area of having its own monetary policy. This seems self-evident, but it is not always the case. We currently see around the world many important countries and economies that have actually chosen not to have their own monetary policy.
[4] However, overall emissions continue to be improperly priced, implying that economic activity – including the flow of finance – remains biased in favour of high-emission activities. Besides the gap in carbon pricing, a second gap is that capital markets are not playing their potential role in supporting the green transition. ECB research shows that stock markets can strongly encourage investment in greener technologies.