The macroeconomic environment has shifted rapidly in the past year. This has posed serious challenges for policymakers seeking to avoid recession and inflation but also to boost productivity growth and prevent dangerous climate change and environmental degradation.
This paper seeks to set out a stable and prudent course for macroeconomic policy, arguing that a policy approach that encourages an acceleration in clean investment is best placed to address to the challenges of the current global economic environment.
Although fiscal and macroeconomic pressures will differ from country to country, common patterns can be discerned. The paper argues that a policy approach that encourages an acceleration in clean investment is best placed to address issues of slow productivity growth, boost competitiveness and account for the risks and opportunities associated with rapid technological, environmental and social change.