Green QE by comparison would be used to fund carefully-costed, and therefore non-inflationary,
Err, what’s the connection between those two things?
I agree entirely that it’s possible to do infrastructure projects without boosting inflation. And I also agree that you can have carefully costed infrastructure programs. At least, I’m sure that both are possible in theory.
It’s just that there’s absolutely no connection at all between the two ideas. A project is not non-inflationary because you’ve got your cost estimates correct. And not getting your estimates correct will not change whether the project is inflationary or not.
Once the economy has begun to improve, then pension funds can move into longer term investments in areas like energy efficiency and building new low-carbon homes. These will earn a constant income stream and provide secure returns for pensioners.
Same old mistake he and Ritchie have been making all along. The problem with “investing” in energy efficiency is that there isn’t, for an outside investor, a revenue stream that provides a return. Same with low carbon homes.
Now, you can indeed design policies which turn such things into revenue streams. But once you’ve done that then you don’t have to cajole the pension funds into investing in them. Because you’ve now made them provide a return and pension funds like returns and will invest in things which provide them.