Skip to content
Subscriber Only

Higher Inflation, Rates Will Stick Around as Economies Go Green

That’s hardly a selling point for pushing climate-friendly policies, but the financial consequences will get worse the longer we wait.



Photographer: Jacob Kepler/Bloomberg

Subscribe to Stephanomics on Apple Podcasts
Subscribe to Stephanomics on Spotify

Persistently higher inflation and interest rates are probably in the offing as the world transitions to a greener economy. That’s hardly a selling point for politicians pushing climate-friendly policies, but it’s one they’ll have to cozy up to, says Isabel Schnabel, an executive board member of the European Central Bank. Unfortunately, she adds, before politicians will show enough urgency toward the threat of global warming, “it really seems that bad things have to happen.”