Credit Guidance

Description

Jason Hickel:

"Credit guidance: The idea here is to impose rules that limit the quantity of finance that commercial banks can invest in problem sectors. For example, credit guidance can be used to scale down commercial investment in fossil fuel production on a binding, annual schedule. But it can also be used to reduce other destructive and unnecessary industries: SUVs, mansions, cruise ships, private jets, industrial beef, dangerous plastics, fast fashion, weapons, advertising, etc.

To grasp the power of this, and why it is needed, we need to understand something about money. Money represents command over production."

(https://braveneweurope.com/jason-hickel-credit-guidance-how-we-achieve-degrowth)