A proposal for an environmental currency: Integrating natural wealth into monetary policy

The paper proposes a framework for integrating natural capital into the accounting structures of monetary authorities to formulate exchange, fiscal, monetary, and social policies. It starts by highlighting the importance of currency from an economic perspective and introduces a methodology for calculating natural capital. This model aims to influence the consolidated balance sheet of monetary authorities, offering new insights different from traditional annuity-based accounting prices. By quantifying environmental wealth similarly to financial assets on central bank balance sheets, the framework intends to reflect real economic values and guide macroeconomic policy. The study suggests that an increase in environmental wealth could enhance the real value of a environmental currency, contrary to inflationary pressures. The paper also proposes future research directions, including the potential for an environmental cryptocurrency. Ultimately, this approach seeks to support sustainable development and improve societal well-being by aligning economic activities with environmental preservation.