As a father of two, I very much regret seeing often half-hearted climate policies and a lack of credible commitment to a clear transition path. But central bankers do not have the democratic legitimacy to correct political action or inaction. We were not granted independence to make the decisions that politicians are unwilling to make themselves.
We were granted independence because independent central banks are better equipped to safeguard price stability than central banks that are controlled by the government. [17] Yet an active role in climate policy – or other ﬁelds of politics – could undermine our independence and, ultimately, jeopardise our ability to maintain price stability.