What can central banks do?

Central banks play a powerful role in our economies, regulating the creation of money through bank lending and also purchasing assets to create money directly, in a process known as QE (quantitative easing).

In recent years, central banks have purchased assets from fossil fuel companies, thus creating money and giving it directly to the companies that are causing the climate crisis. In this video, I get to ask Mario Draghi – then President of the European Central Bank (ECB) – exactly whey they have been doing this.