Annicciarico, Barbara; Di Dio, Fabio; Dilusio, Francesca - 2022
-and-trade scheme implying a more pronounced pressure on allowances prices and inflation. The impact on price stability is worsened by … inflation under control, and by the adoption of monetary rules tied to expectations rather than current macroeconomic conditions …This paper studies the role of expectations and monetary policy on the economy's response to climate actions. We show …