The shift from fossil fuels to renewable technologies may render the global economy less oil-intensive and more metals-intensive. This column examines how metals supply shocks propagate through production networks and impact inflation. It finds that copper supply shocks have significant and persistent effects on both headline and core inflation. In comparison, oil supply shocks mostly […]
The green transition faces significant challenges due to economic and policy uncertainty. Unpredictable returns on investments, especially in renewable energy, hinder innovation in this crucial sector. This column examines the impact of uncertainty on renewable energy patents. The findings show that a rise in uncertainty reduces green innovation by up to 1.5%, with stronger effects […]
We assess the implications of two types of monetary policy responses: a ‘passive’ monetary policy response that keeps the real interest rate constant and ‘active’ policies that raise the real rate substantially by responding to inflation measures, such as headline, core, or energy inflation. In Bobasu et al. (2024), we compare the two using a […]
