Arbeitspapier
Is the green transition inflationary?
We develop a two-sector New Keynesian model to analyze the inflationary effects of climate policies. Climate policies do not force a central bank to tolerate higher inflation, but may generate a tradeoff between the central bank's objectives for inflation and real activity. The presence and size of this tradeoff depends on how flexible prices are in the "dirty" and "green" sectors relative to the rest of the economy, and on whether climate policies consist of taxes or subsidies.
- Language
-
Englisch
- Bibliographic citation
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Series: Staff Report ; No. 1053
- Classification
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Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Price Level; Inflation; Deflation
Monetary Policy
Climate; Natural Disasters and Their Management; Global Warming
- Subject
-
green transition
inflation
central bank's tradeoffs
- Event
-
Geistige Schöpfung
- (who)
-
Del Negro, Marco
Di Giovanni, Julian
Dogra, Keshav
- Event
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Veröffentlichung
- (who)
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Federal Reserve Bank of New York
- (where)
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New York, NY
- (when)
-
2023
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Del Negro, Marco
- Di Giovanni, Julian
- Dogra, Keshav
- Federal Reserve Bank of New York
Time of origin
- 2023
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