More and more central banks no longer want to focus on their monetary policy tasks, but are about to give priority to political goals such as the fight against climate change or the commitment to more diversity. Prof. Volker Wieland views this development with skepticism. In an interview with "Wirtschaftswoche," he said that central banks lack the democratic legitimacy to pursue climate protection or the promotion of problem groups. He does not see the instruments of monetary policy as suitable for this purpose. "How do central banks know how much a change in interest rates will reduce CO2 emissions?"
Wieland also warned that central banks are making themselves vulnerable by expanding their activities. "Central banks run the risk of exposing themselves to strong political pressure if they promise something here that they can't deliver at all."
Wirtschaftswoche: "Mal eben kurz die Welt retten" (€)
