Home Forum Political Economy Exchange with Blair Fix on an ecological Kalecki/Goodwin model Reply To: Exchange with Blair Fix on an ecological Kalecki/Goodwin model

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Brian Kim
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Thank you for responding to my question!

 

I have a question about the possibility of monetary/banking regulation regarding ecology.

Right now, the most prominent (in a sense that it’s been supported by progressive/heterodox economists) proposal for financial regulation regarding climate change is “greening the monetary system”: for instance, by establishing a public taxonomy of what constitutes “sustainable” and incorporating it into monetary policy. (The European Union has been creating EU Taxonomy but it’s been mainly about disclosure of risks).

Yet, it seems that even this approach fails to account for the fundamental disconnection between money and energy(entropy).

 

Based on Soddy’s view, figures like Buckminster Fuller called for tying money to energy so as to fundamentally limit money (and debt) creation and consumption of energy and resources. There have been various small local projects and conceptual suggestion of it, but obvious doing this would mean going beyond the current institutional structure of capitalism.

 

For some detail, check this report “Energizing Money” by economist Josh Ryan-Collins published in 2013.

https://neweconomics.org/2013/02/energising-money

 

Do you think, for instance, tying money to renewable/low-carbon energy, would be pursuable?