Michael Metcalfe argues that Quantitative Easing (QE) is a good idea for mitigating climate change!
Metcalfe is a financial expert, senior managing director, and head of global macro strategy at State Street Global Markets. We claim that Metcalfe’s TED presentation also supports the feasibility of Global 4C!
Global 4C Mitigation is a macro-economic policy for using Green Quantitative Easing (GQE) to manage a parallel world currency that will be issued as a financial reward for climate mitigation. Whilst Metcalfe falls short of introducing the idea of a new currency system, he focuses on Special Drawing Rights (SDR) as the possible currency instrument.
The Global 4C policy similarly advocates using GQE as a primary financing mechanism, however we also recommend a new digital currency (we call it 4C or the Solar Dollar). The Solar Dollar should be price-fixed by central banks. The currency supply should be pegged to the recorded mitigation rate, using a global decentralised and transparent carbon auditing system over the Internet and mobile phones. This is the new economy for the 21st century – a decentralised public banking system for financing critical ecosystem services.
Listen to Michael speak at TED (November 2015):