This review explores the interplay between renewable energy and monetary policy, highlighting how central banks can contribute to renewable energy development. Although the shift towards renewable energy is tremendous for sustainable development, it also comes with notable economic and financial challenges. Supervenient, the energy transition has raised significant interest among decision-makers and academia, prompting them to explore new innovative policies and strategies; as a result, these actions acknowledged that research in this field is essential for identifying optimal solutions. Moreover, recent global crises, including the energy crisis, have emphasised the important role of macroeconomic policies in crisis management. Within this framework, it’s essential to investigate how monetary policy, as the main tool of central banks, can foster renewable energy development. This comprehensive review systematically examines existing literature through a semi-structured literature analysis, which allows for a more flexible, complex, and thorough approach to identifying key issues and providing insights into the potential of monetary policy to address renewable energy challenges. We identified four main clusters of research: sustainability and development, economic growth and energy, monetary policy and investment, and emissions and renewable energy. Furthermore, exploring the interaction between monetary policy and renewable energy objectives to uncover paths for harmonizing monetary strategies with the goals of renewable energy development contributes to highlighting the existing gaps in the field and represents a starting point for further research topics. This study provides a comprehensive overview of the existing knowledge, identifies gaps in the literature, and suggests directions for future research.

The pattern of financial cycles in the European Union has direct impacts on financial stability and economic sustainability in view of adoption of the euro. The purpose of the article is to identify the degree of coherence of credit cycles in the countries potentially seeking to adopt the euro with the credit cycle inside the Eurozone. We first estimate the credit cycles in the selected countries and in the euro area (at the aggregate level) and filter the series with the Hodrick–Prescott filter for the period 1999Q1–2020Q4. Based on these values, we compute the indicators that define the credit cycle similarity and synchronicity in the selected countries and a set of entropy measures (block entropy, entropy rate, Bayesian entropy) to show the high degree of heterogeneity, noting that the manifestation of the global financial crisis has changed the credit cycle patterns in some countries. Our novel approach provides analytical tools to cope with euro adoption decisions, showing how the coherence of credit cycles can be increased among European countries and how the national macroprudential policies can be better coordinated, especially in light of changes caused by the pandemic crisis.

Extensive analysis of intertwinement with other industries caused the energy sector to gain momentum in the recent economic literature. This paper aims to create an indicator that captures the impact of financial stability for energy companies on all other industrial groups. To this end, we use daily data from 2007 until the end of 2021 to compute financial stability metrics for all European companies from the STOXX 600 index. The main contribution of our study is to harness the neural network forecasting power to predict extreme levels of this impact. We motivate this choice with evidence from the literature that documents the improved performance of these methods in predicting crises. Our methodological approach also employs an outlier detection algorithm based on copula (COPOD) to identify situations when the energy sector substantially impacts other industries and develop a framework to predict out-of-sample situations. We found evidence that the Deep Renewal model has superior forecasting accuracy to the standard Croston model. The main conclusion is that the design of this methodological framework allows authorities to monitor the impact of shocks produced by the energy sector on financial stability at the European level and undertake strategic management actions.

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