And that has to be explained: you cannot be a free rider in a monetary union; you need to have the right policies at home and in Brussels. The European elections could have been the right time to have the discussion. But it didn’t happen, and misunderstandings and misgivings will stay with us. This creates a lingering fragility.
How involved should central banks be in combating climate change? Climate change is a defining issue for the global economy. No one can ignore it, certainly not central bankers. We cannot be blind and deaf to the discussion. We need to understand how climate change will shape the economy. The time horizon has shortened.