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Finding a third way between throttling energy demand and dirty fossil fuel – BNP Paribas Asset Management

The fighting in Ukraine and the resulting sanctions on Russia are disrupting commodity supplies, exacerbating ‘cost push’ inflation set in motion by the pandemic and its aftermath.

Posted on Jul 14, 2022

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... These challenges are proving progressively harder for monetary policymakers in many countries to address since the main policy tool typically used to combat inflation – interest rate rises – impacts the demand side of the inflation equation and does little to address supply bottlenecks. In BNP Paribas Asset Management  view, this situation emphasises the need to accelerate the clean energy transition in Europe and elsewhere.

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