The transformation of economies towards significantly reduced CO2 consumption raises high investment and capital requirements. Financial and capital markets can help to mobilize the necessary funds for global investment needs and to steer capital towards sustainable investments. Moreover,...

A policy issue central banks are confronted with is whether inflation targets should be adjusted to account for the systematic upward bias in measured inflation due to quality improvements in consumption goods. We show that in the context of a Ramsey equilibrium the answer to this question...