Demertzis, Maria; Domínguez-Jiménez, Marta; Guetta-Jeanrenaud, Lionel
IDEAS Working Paper Series from RePEc,
01/2021
Paper
This Policy Contribution was produced with the financial support of the European Forum Alpbach The completion of Europe’s capital markets union is desirable not only from a financial stability standpoint. Equity-based financing is also better suited than banks to finance high-growth sectors (such as digital and hi-tech) where most capital is intangible. Additionally, stock markets reallocate funds towards less-polluting sectors more efficiently than banks, and provide incentives for carbon-intensive sectors...
