Abstract
In the face of mounting evidence of global warming, which is an irreversible process, central banks, as other policymakers, have to play their part. They need to consider climate risks not only in their internal management, but also when they devise their strategies, conduct their policies and implement their decisions. This article examines the possible impacts of climate risks on the two main variables of interest for monetary policy, economic growth and inflationary pressures. On that basis, it infers the potential consequences for the objective of monetary policy, its conduct and its implementation.
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The views expressed are those of the authors and do not commit Paris 1 Panthéon-Sorbonne or Sciences Po.
Christian Pfister, Sciences Po, Paris; and Paris 1 Panthéon-Sorbonne, France.
Natacha Valla, Sciences Po, Paris, France.
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Open Access: This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/).
Open Access funding provided by ZBW — Leibniz Information Centre for Economics.
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Pfister, C., Valla, N. Financial Stability Is Easier to Green Than Monetary Policy. Intereconomics 56, 154–159 (2021). https://doi.org/10.1007/s10272-021-0972-y
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DOI: https://doi.org/10.1007/s10272-021-0972-y