That would also render a further question redundant – the matter of whether the asset purchase programme in its existing form favours carbon-intensive enterprises and thus cements the existing structures.13 A monetary policy which pursues explicitly environmental policy objectives is at risk of being overburdened. And in the long run, the central bank’s independence might be called into question.
What matters to me is that we do not generally promote sustainability using instruments which serve other purposes. I think a decisive and effective climate policy is the right course of action – but it needs to be implemented using the right instruments and by agents which have the democratic legitimacy needed for that purpose.