Climate transition set to boost inflation, finds Swedish research
Sveriges Riksbank analyses main inflationary forces stemming from climate policies
The transition to a greener economic model could boost inflationary pressures by reducing supply, research published by Sveriges Riksbank finds.
Lower supply could be the result of phasing out the carbon-intensive technologies upon which the global economy has relied over the last century, says Mikael Apel, senior adviser at the department of monetary policy at the Swedish central bank. Additionally, inflation could increase due to higher demand, resulting from investments to set up a greener
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