The climate crisis is increasingly being addressed in the context of central banks and financial regulators. Below, we have compiled relevant research and policy proposals that have been written over the past few years.This is a non-exhaustive list and there is a lot more research out there. Help us by sharing new research and proposals at [email protected].
Central Banking and Financial Supervision Roadmap
Transitioning to a Net-Zero and Nature-Positive Economy
This WWF report argues that the scientific evidence of climate impacts and biodiversity collapse requires that central banks take immediate action using all tools at their disposal.
Inflation and Climate Change
The Role of Climate Variables in Inflation Forecasting and Macro Modelling
This policy briefing examines the lack of climate-related input into conventional central bank macroeconomic and inflation modelling, offering recommendations to better integrate climate-related risks into forecasting frameworks.
How Regional Federal Reserve Banks Can Contend with Economic Risk from Climate Change
This study reviews 40 years of ‘Beige Book’ reporting from the 12 regional US Federal Reserve banks, focusing on their response to climate-related events and offering recommendations to address the growing climate threat to US financial and price stability.
Central Banks and Climate Change
Fit, Opportunity and Suitability in the Law and Beyond
This paper and an accompanying blog post use a systematic methodology and legal perspective to analytically address mandate, independence and other objections to greater central bank action on climate change.
Feeling the Heat: Extreme Temperatures and Price Stability
This ECB paper examines the impact of temperature shocks on prices across 48 countries and finds that temperature plays a “non-negligible role” in driving medium-term price developments. It concludes that “climate change matters for price stability”.
The Effects of Natural Disasters on Price Stability in the Euro Area
This discussion paper from the German Institute for Economic Research examines the impact of natural disasters on price stability in the euro area, and finds significant positive effects on overall headline inflation but diverging results at the sub-index level.
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