The green agenda dilemma – Central Banking

Central banks face a dilemma. The energy price shock resulting from the Russian invasion of Ukraine is likely to persist for many years. Western nations now want energy security (or, better still, energy independence). This ambition will likely lead to higher energy prices across the spectrum of energy sources, and represent a setback for net-zero-emission plans. Beyond their price-stability targets, most central banks have mandates that also include an obligation to provide support for wider

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