Posted 11/13/2023, 7:47:00 PM
Bank of England official: Net zero policies raise inflation, hurt growth
- Net zero policies are inflationary and hit growth, says Bank of England policymaker Catherine Mann
- Climate policies like carbon taxes raise costs for companies, who pass them onto consumers
- This causes upward pressure on inflation and downward pressure on output, directly affecting Bank's price stability mandate
- Pushing firms away from polluting production methods to greener ones imposes costs passed to consumers
- Even consumer choice for greener goods boosts prices until supply increases