In the twenty-sixth episode of the EU to go podcast, Thu Nguyen speaks with Sebastian Mack on the relationships between inflation, interest rates, unemployment and green investments
In response to high inflation, the European Central Bank (ECB) has raised its interest rates for the first time in 11 years. But how do interest rate changes affect inflation and what are the implications for the green transition? In this EU to go episode, Thu Nguyen talks with Policy Fellow Sebastian Mack about the connections between inflation, interest rates, unemployment and green investment. How does the ECB aim to ensure price stability, and why is the distinction between supply and demand shocks important? And what does all this have to do with the climate? Financial market expert Sebastian explains how interest rate hikes can hinder green investment and why the ECB just can't be as green as it would like to be. In the process, he also takes the EU and member states to task for supporting the financing of a sustainable economy.
You can find "EU to go - Der Podcast für Europapolitik" on all well-known podcast channels.