These research papers emphasize the characteristics of the financial sector as key determinants of macroeconomic performance in all its facets, notably as regards long-term potential, cyclical fluctuations and likelihood and severity of crisis episodes (see also Kaminsky and Reinhart, 1999).
On a macroeconomic level, there is no doubt that a combination of physical and transition risks has started to emerge. Only by introducing mandatory transition plans can banks’ lofty intentions for the next 30 years be turned into concrete actions now. Such mandatory transition plans can help avert the tragedy of the horizon.