To give you some numbers: Global losses from natural disasters totalled 270 billion US dollar last year, according to Munich Re's NatCat Service. Roughly 55% was not insured.2 In a nutshell, climate change affects the real economy and thus central banks' mandate. Central bankers and supervisors globally must continue to improve their economic models to better capture climate risks.
In order for the Japanese economy to resume a self-sustained recovery, improvements in corporate and household confidence are vital. Hence, the overall economic activity and the effects of the economic stimulus measures should be carefully monitored.