Abstract Policy makers are increasingly embracing the idea of using industrial and innovation policy to tackle ‘grand challenges’ facing modern societies. This article argues that through well-defined goals, or more specifically ‘missions’, focused on solving important societal challenges, policymakers have opportunity determine direction growth by making strategic investments across many different sectors nurturing new landscapes, which private sector can develop further, as a result induce...

Climate-related financial risks (CRFR) are now recognised by central banks and supervisors as material to their stability mandates. But while CRFR considered have some unique characteristics, the emerging policy framework for dealing with them has largely focused on market-based solutions that seek reduce perceived information gaps prevent accurate pricing of CRFR. These include disclosure, transparency, scenario analysis stress testing. We argue this approach will be limited in impact...

In conventional economics, value creation occurs in the private sector with state limited to correcting for "market failures". Public management scholars have developed term "public value" describe how public managers can engage citizens shaping effective policy. A more ambitious concept of rejects failure" framework and puts at centre economy. is created by actors creating co-shaping markets line purpose. This direction-setting role enables different sectors collaborate address major...

Financial risks related to climate change and biodiversity loss are currently being addressed in a largely siloed manner. Neglecting their interconnections, however, may lead 'blind spots' misestimations of systemic financial risk, potentially undermining progress on both finance policy emerging biodiversity-related (BRFR). In particular, the 'risk measurement–based' approach dominating policy, which is now taken up address BRFR, poorly equipped radical uncertainty that characterises types...

Secure housing is core to the Sustainable Development Goals and a fundamental human right. However, potential conflicts between sustainability objectives remain under-researched. We explore impact of current English government policy, alternative strategies, on national carbon biodiversity goals. Using material flow land use change/biodiversity models, we estimate from 2022 2050 under policy alone would consume 104% England's cumulative budget (2.6/2.5Gt [50% chance < 1.5 °C]); 12%...

Abstract There is increasing consensus that modern capitalist economies suffer from excessive rent extraction in both financial and real economy sectors. However, scholars have yet to develop a coherent analytical framework for identifying the common characteristics of economic rents. In particular, there has been little attention paid distinguishing ‘good’ rents—key innovation growth—from ‘bad’ forms which contribute stagnation inequalities wealth income. This paper takes some first steps...

This article considers the role of central bank interventions in credit and financial markets support decarbonization. Drawing on critical macrofinance literature, we argue that banks are constrained greening flows by their continued adherence to monetary dominance – prioritizing short-term price stability structural demands global market-based finance. has led a narrow focus 'market-fixing' 'de-risking' policy interventions, implicitly outsourcing green transition private finance whilst...

This paper argues that the housing affordability and wealth inequality crises facing advanced economies are driven by emergence of a feedback cycle between finance landed property. The has been created increasing policy preference for private home ownership coupled with liberalization bank credit accompanying financial innovation. Under such conditions, property becomes both most attractive form collateral banking system desirable asset households investors. housing–finance emerged in...

The green transition requires a substantive shift in financial flows that will not occur without policy interventions. We map out and critically assess the dominant, 'risk-based' approach which relies on changing relative prices of /dirty assets. Since it outsources pace nature decarbonisation to private capital, risk is poorly equipped deal with towards market-based finance, vulnerable arbitrage regulatory capture, unable uncertainty or carbon lock-in dynamics. propose an 'allocative credit...

Abstract The decline in the share of bank credit to non-financial firms since 1990s, relative for real estate and financial asset markets, has raised concerns over economic growth stability sparked renewed interest policies, instruments institutions. We examine their theoretical case post-war use, trace demise during wider market-oriented policy reconfiguration from 1980s. Notably, this included home ownership polices favouring mortgage markets. then empirical relationship between allocation...

Abstract Attempts by governments to curb the market power of ‘Big Tech’ (Alphabet, Amazon, Apple, Meta Platforms, and Microsoft) are impeded limited public information on their diversified digital platform ecosystems. Big Tech’s annual 10-K financial reports disclose little about globally dominant ‘free’ services, user numbers, monetization practices, suites products. To support antitrust regulatory oversight, we propose mandatory type disclosures covering Tech’s: (i) internally used...

Climate-related financial risks (CRFR) are now recognised by central banks and supervisors as material to their stability mandates. But while CRFR considered have some unique characteristics, the emerging policy agenda for dealing with them has largely focused on conventional market-based solutions. Current emphasises information gaps that prevent accurate assessment of market risk. The assumption is these can be remedied via disclosure, transparency, scenario analysis stress testing, which...

This article develops the concept of housing market ‘rentierization’ to describe shift in treatment away from its use as a consumption good an asset which economic rent can be extracted. Rentierization encompasses, but goes beyond, ‘financialisation housing’ that has been focus attention recent political economy literature it involves changes across land and policy, fiscal-policy well financial policy spheres. We examine Australia canonical example rentierization, conducting historical case...

This paper considers how financial authorities should react to environmental threats beyond climate change. These include biodiversity loss, water scarcity, ocean acidification, chemical pollution and — as starkly illustrated by the COVID-19 pandemic zoonotic disease transmission, among others. We first provide an overview of these nature-related risks (NRFR) then show sector is both exposed them contributes their development via its lending, propagation amplification shocks. argue that NRFR...

Mobilising private institutional investors to fund global biodiversity goals has become a hegemonic narrative within environmental policy and sustainable finance circles. We challenge its underlying economic assumptions question the deprioritisation of direct public investment in nature. Financial instruments for attracting large-scale into conservation often incur high transaction costs ensure ecological effectiveness, which potentially conflict with investors' need competitive returns,...

The financial crisis of 2007–2008 triggered monetary policy designed to boost nominal demand, including 'Quantitative Easing', 'Credit 'Forward Guidance' and 'Funding for Lending'. A key aim these policies was the quantity bank credit non-financial corporate household sectors. In previous decades, however, policy-makers had not focused on credit. Indeed, over past half century, different variables were raised prominence in quest achieve desired GDP outcomes. This paper conducts a...

The transition to a net-zero carbon economy requires major shift in financial flows. Financial policy bodies — central banks, regulators and ministries of finance clearly have roleto play supporting such shift. Up until now, discourse has envisaged this role primarily as one enabling de-risking private finance, via support for new 'green finance' markets andinstruments (e.g. green bonds, sustainability taxonomies ESG derivatives) alongside encouraging the disclosure climate related risks...

Historically high levels of private and public debt coupled with already very low short-term interest rates appear to limit the options for stimulative monetary policy in many advanced economies today. One option that has not yet been considered is financing by central banks boost demand and/or relieve burdens. We find little empirical evidence support standard objection such policies: they will lead uncontrollable inflation. Theoretical models inflationary rest upon inaccurate conceptions...