Financial Stability Is Easier to Green Than Monetary Policy

摘要

In the face of mounting evidence of global warming, which is an irreversible process, setting a social price of carbon at the global level (Nordhaus, 2019) and devising appropriate metrics to assess climate risks at the micro-economic level are currently priorities. Central banks, as other policymakers, have to play their part and thus consider climate risks, not just in their internal management, but also when they devise their strategies, conduct their policies and implement their decisions. At this stage, this seems to require some limited adaptations of their monetary policy frameworks rather than profound changes. Climate change risks, however, are bound to play an increasingly important role in the conduct of financial stability policies in the coming years.