Michael Metcalfe: A provocative way to finance the fight against climate change
Michael Metcalfe - Financial expert
A senior managing director and head of global macro strategy at State Street Global Markets, Michael Metcalfe provides high quality capital flow research. Full bio
to tackle climate change?
not as a green campaigner,
hopeless at recycling.
of financial policy making
how history will judge us.
this ring has worked.
and for allowing economies to develop
gases that coal produces.
that will be judged more harshly
my grandfather's industry, even.
in the banking industry,
for its crisis in 2008 --
and finances of governments
Climate Summit in 2009
move away from burning fossil fuels
to cleaner energy needs to happen
its power grid around fossil fuels today,
to change later on.
that the banking crisis happened
could use the tools
stronger, not weaker, with time.
of what those tools looked like.
by their own governments
as "quantitative easing."
to those bonds when they mature,
dollars' worth of its own currency.
the International Monetary Fund, the IMF,
dollars' worth of their own currency --
President, Mario Draghi,
that exact same commitment --
to reflate their economy.
trillions of dollars more
that continue today.
with some global challenges,
collectively, with urgency,
policies like money printing.
to that original question:
was something of a taboo.
by demands from their people
money for other causes:
historical examples of money printing --
like bread are doubling every day.
the public debate forward,
for the people is now discussed openly
in some political manifestos.
doesn't stop here,
is a shared global problem,
that international currency
funds amongst each other.
of the IMF hold SDR quotas
themselves against currency crises.
crisis in 2009,
250 billion dollars --
as a collective global action
large and small in one fell swoop.
that were printed in 2009 --
who, for the most part,
for these foreign exchange reserves,
that were printed in 2009,
market countries at least,
spending those unused,
that were printed in 2009,
by the UN's Green Climate Fund.
agreement in Copenhagen.
towards developing countries
successful funds of its type,
SDRs that were issued,
of 100 billion dollars a year
of using SDRs in this way are benign,
of SDRs, say, every five years,
would direct their share
in this way has several advantages
climate change benefits everyone.
from the printing press over another.
claims is mitigated.
to agree to issue these extra SDRs,
would get out of control.
is a collective, global action
global action --
with the money-printing schemes,
can be allayed by rules.
every five years could be capped,
is never more than five percent
concerns that the US might have
the dollar's dominant role
would likely steal from the dollar
followed up its issuance --
dollars of SDRs in 2014.
could have contributed
like "whatever it takes."
could be done with that money,
of its reserves to Brazil
on their goals on deforestation.
a 70 percent reduction in deforestation
of carbon dioxide emissions,
all American cars off the roads
climate projects like that,
for a generation.
afford to fund climate change.
we took to save the financial system?
"whatever it takes."
About the speaker:Michael Metcalfe - Financial expert
A senior managing director and head of global macro strategy at State Street Global Markets, Michael Metcalfe provides high quality capital flow research.
Why you should listen
Michael Metcalfe leads State Street Global Markets Macro Strategy team, focusing on how the behavior of investors and online retailers can help with investment decisions. In this role, he regularly consults with many of the world’s largest institutional investors as well as policy makers. He develops tools to help analyze markets, and regularly advises portfolio managers from some of the world’s largest pension and hedge funds.
Michael Metcalfe | Speaker | TED.com