Nevertheless, global warming has important implication for monetary policy, through its long run impact on rates of real interest and growth, and its short run repercussions on the level of prices of fossil fuels, which may react quite strongly to changing perceptions of the character and extent of the global warming phenomenon.
At the last of this session, Dr. Junggun Oh identified impacts of climate change which might be a decrease in the potential capacity of growth, a rise in the inflation rate, a decrease in capital flows, and deterioration of exports, and thus a slowdown of global economic growth followed by changes in market interest rate.