Solveig K. Erlandsen Sui-Jade Ho Danae Kyriakopoulou James Talbot Edwin Millar
Climate change and the transition to net zero are reshaping the macroeconomy, with important implications for monetary policymakers’ core price-stability objectives. As physical hazards become more frequent and severe, and as governments’ mitigation policies reallocate resources across the economy, central banks may increasingly face challenging trade-offs between stabilising inflation and supporting output. This column discusses the implications of climate change for monetary policy, including its effects on inflation, output, monetary transmission, structural economic factors and central bank communications. It introduces a practical framework for central banks as they assess, respond to, and communicate about climate-related shocks.
Πηγή: VoxEU