Max Krahé argues for central planning in order to make sustainable finance work / FT, Sustainable capitalism, 7/12/2021/.
Having all the failed experiences of central planning in the command economies of Europe may I just strongly object to the idea of reigniting central planning in a new area, called green transition.
Financial regulators and central banks should have a new “green mandate” to facilitate green transition via the financial sector. The Hungarian central bank has been given this mandate recently and both the financial community and the business sector warmly welcomed the new role of the central bank.
As for sustainable finance, the only way to do the job is a project-by-project analysis. All investment decisions should comply with the regulations aiming for an accelerated green transition.
The British/Scottish market-based industrial revolution proved to be fast and sweeping, this time we have all the techniques and technologies to even accelerate this revolution.
Governor Matolcsy, MNB, the Central Bank of Hungary
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