﻿[7] Carl Walsh took up this point in designing a socially optimal incentive contract for central bank governors, and the New Zealanders went a fair  way towards operationalising it. ﻿[8] Third there was the empirical evidence of Alex Cukierman, Alesina and Summers, and Grilli, Masciandaro and Tabellini.
In regions with high exposure to flooding for example, measures could include the construction of levees or the promotion of nature-based solutions to reduce this risk. Nature-based solutions are likely to have significant positive spillover effects on the economy and its sustainability. Where insurers are not present or have little penetration, MDBs and IFIs could play a role in bringing them in.