Beyond market neutrality? Central banks and the problem of climate change
Starting with a landmark speech by Mark Carney on the ‘Tragedy of the Horizon’ in 2015, climate change entered central banking discourse, causing some of its key convictions to come under new scrutiny. This article traces how initially climate change was firmly embedded in a conventional framework o...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2023-01-01
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| Series: | Finance and Society |
| Subjects: | |
| Online Access: | https://www.cambridge.org/core/product/identifier/S2059599900001278/type/journal_article |
| _version_ | 1797255833846808576 |
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| author | Matthias Thiemann Tim Büttner Oliver Kessler |
| author_facet | Matthias Thiemann Tim Büttner Oliver Kessler |
| author_sort | Matthias Thiemann |
| collection | DOAJ |
| description | Starting with a landmark speech by Mark Carney on the ‘Tragedy of the Horizon’ in 2015, climate change entered central banking discourse, causing some of its key convictions to come under new scrutiny. This article traces how initially climate change was firmly embedded in a conventional framework of ‘market completion’ that would allow financial markets to price in negative externality. Yet, over the course of the last seven years, central banks have repositioned their role regarding this problem, taking on a much more active stance, which calls into question the notion of ‘market neutrality’. To trace these discursive changes, this article identifies three discursive layers formed around market-based mechanisms, responsible investment and monetary policy. We show that in the unfolding of the debate, the issue of climate change has altered the self-understanding of central bankers and driven them towards a more active stance where they acknowledge that central bankers shape and make, and not only ‘mirror’, market forces. |
| first_indexed | 2024-04-24T22:12:08Z |
| format | Article |
| id | doaj.art-f4e57390b70c43dda4a42e517a62dcdc |
| institution | Directory Open Access Journal |
| issn | 2059-5999 |
| language | English |
| last_indexed | 2024-04-24T22:12:08Z |
| publishDate | 2023-01-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Finance and Society |
| spelling | doaj.art-f4e57390b70c43dda4a42e517a62dcdc2024-03-20T08:20:09ZengCambridge University PressFinance and Society2059-59992023-01-019143410.2218/finsoc.8090Beyond market neutrality? Central banks and the problem of climate changeMatthias Thiemann0Tim Büttner1Oliver Kessler2Sciences Po, FranceIndependent researcher, GermanyUniversity of Erfurt, GermanyStarting with a landmark speech by Mark Carney on the ‘Tragedy of the Horizon’ in 2015, climate change entered central banking discourse, causing some of its key convictions to come under new scrutiny. This article traces how initially climate change was firmly embedded in a conventional framework of ‘market completion’ that would allow financial markets to price in negative externality. Yet, over the course of the last seven years, central banks have repositioned their role regarding this problem, taking on a much more active stance, which calls into question the notion of ‘market neutrality’. To trace these discursive changes, this article identifies three discursive layers formed around market-based mechanisms, responsible investment and monetary policy. We show that in the unfolding of the debate, the issue of climate change has altered the self-understanding of central bankers and driven them towards a more active stance where they acknowledge that central bankers shape and make, and not only ‘mirror’, market forces.https://www.cambridge.org/core/product/identifier/S2059599900001278/type/journal_articleClimate changecentral banksmarket neutralitydiscourse |
| spellingShingle | Matthias Thiemann Tim Büttner Oliver Kessler Beyond market neutrality? Central banks and the problem of climate change Finance and Society Climate change central banks market neutrality discourse |
| title | Beyond market neutrality? Central banks and the problem of climate change |
| title_full | Beyond market neutrality? Central banks and the problem of climate change |
| title_fullStr | Beyond market neutrality? Central banks and the problem of climate change |
| title_full_unstemmed | Beyond market neutrality? Central banks and the problem of climate change |
| title_short | Beyond market neutrality? Central banks and the problem of climate change |
| title_sort | beyond market neutrality central banks and the problem of climate change |
| topic | Climate change central banks market neutrality discourse |
| url | https://www.cambridge.org/core/product/identifier/S2059599900001278/type/journal_article |
| work_keys_str_mv | AT matthiasthiemann beyondmarketneutralitycentralbanksandtheproblemofclimatechange AT timbuttner beyondmarketneutralitycentralbanksandtheproblemofclimatechange AT oliverkessler beyondmarketneutralitycentralbanksandtheproblemofclimatechange |