Fighting fossil-fuel inflation with ECB rate hikes punishes renewables, research finds
5 Articles
5 Articles
In addition, starting from a 50% rise in oil and gas prices, researchers concluded that it could increase inflation by up to 1.8 percentage points in the following year – in addition to existing inflation levels.
Fighting fossil-fuel inflation with ECB rate hikes punishes renewables, research finds
Every 10-percent rise in oil and gas prices increases overall inflation by 0.35 percentage points. The European Central Bank's rate hikes risk making it worse by making renewable investments more expensive, finds the London-based research institute New Economics Foundation.
For each 10% rise in oil and gas prices, global inflation in Europe may increase to 0.36 percentage points, according to a study by the New Economics Foundation (NEF), published today.
An increase in the key interest rate is the wrong instrument to combat inflation by increasing fossil energy costs.Read the full article on FALTER.at
The New Economics Foundation calls on the ECB to have a specific and lower interest rate to finance renewables and prevent monetary policy from slowing down the energy transition that can reduce European exposure to fossil fuels.
Coverage Details
Bias Distribution
- 50% of the sources lean Left, 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
