On January 6, Janet Yellen will likely be confirmed as the next Chair of the Federal Reserve System……how can Janet Yellen, as chief monetary policymaker, reorient the economy using the power of money creation to address climate change?
Interesting idea. So far economic growth has created environmental problems linked to CO2 emissions; but policy makers are unwilling to address the environmental problems because their priority is economic growth. If the potential loss of economic growth by capping CO2 emissions could be offset by reimbursing people through a “citizens dividend” then the economy could be sustained. But if this “dividend” is spent on the consumption, of the goods which will become scarce because they are linked to CO2 emissions, then there will be inflation. Best to spend the “dividend” on investment in production of goods that have low CO2 emissions associated with it.