International Economy

What is the role of financial markets in a green transformation? There are two key aspects to this question. First, what should be the balance between private and public funding of the transformation? Second, what are the dangers that our modern financial market structure poses to a successful green transformation?

The green turn in central banking has generated considerable controversy. Some voices have questioned central banks’ growing engagement with climate issues, arguing that unaccountable technocrats do not have the tools or the political legitimacy to intervene in (or possibly highjack) the low-carbon transition. Others question the continued emphasis on voluntary decarbonisation, even among green champions in the central bank community. This paper intervenes in and nuances this “too little vs too much” debate.

This paper critically examines whether the European fiscal framework will be sufficient to stabilise the macro economy in the aftermath of the multiple crises, let alone achieve the goals of a green transition that leads to full capacity utilisation of the economy. The  reader will come to understand that private finance alone is neither sufficient nor desirable to achieve the goals of a socially just green transition.

This article wants to provide food for thought on what a long-term economic policy could look like. In the context of the climate crisis, increasing inequality, the loss of biodiversity and financial instability, the challenge is to craft a strategic approach that can set the course for long-term success.

This publication series aims at contributing to the emergence of a transformative economic thinking, integrating environmental, social, and economic dimensions, after the wreckage of neoliberal economic thought that clearly has reached its date of expiry. It is the product of a collaboration of the Heinrich-Böll-Stiftung, the ZOE Institute for future-fit economies, and Finanzwende Recherche.

This paper attempts to overcome the polarisation between inclusive green growth and degrowth. The authors suggest that the idea of “post-growth” can serve as a unifying concept and define the pillars of a progressive economic policy agenda that can help Germany, the European Union, and the United States achieve their net-zero ambitions while ensuring prosperity and reducing inequality.

Transport makes a significant contribution to global employment and provides economic opportunities for millions across the world, acting as a key enabler for trade, manufacturing and mobility. In Europe alone, the transport industry directly employs around 10 million people. However, the human costs of transport – both present and future – cannot be ignored.

The undeniable connections among the multiple crises that humanity faces today -- climate change, biodiversity loss, inequality, poverty, and the Covid-19 pandemic -- demand interconnected, rather than segmented, macro solutions. Responses must be systemic and address the structural dynamics and shortcomings of governance, economics and finance. A feminist and decolonial framing provides a lens for proposed reforms.

The momentous African Continental Free Trade Area (AfCFTA), which went into effect on 1 January 2021, demonstrates the continent’s desire to carve its own economic destiny. But as Africa’s biggest trading partner, the European Union’s actions will have a strong impact on the project’s chances of success. The EU’s historical record suggests it would benefit from more serious listening to what its African partners want on trade.