European Central Bank Official Admits the Obvious about Greenflation

The headquarters of the European Central Bank in Frankfurt, Germany. (Ralph Orlowski/Reuters) Sooner or later, what goes up might not come down.

NRPLUS MEMBER ARTICLE T he only surprise in this story (to me) is that someone at the European Central Bank, Isabel Schnabel, the member of the ECB’s Executive Board responsible for market operations, has been talking frankly about greenflation. Her motive for doing so may (I’m guessing) come in part from her well-publicized worries about the ECB’s, uh, aggressive use of its balance sheet, but her speech is focused elsewhere than on the quantitative-easing debate.

Schnabel highlights how much energy prices have risen in Europe (a development, it must be said, that’s hard to miss). To be fair, it’s a phenomenon that doesn’t owe a

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