However, let us assume a situation in which the financial cycle is not sufficiently contained, leading to a feedback loop in which changes in the output gap and changes in the financial cycle reinforce each other. In that case, it inevitably becomes necessary to make use of not only macroprudential policy but also monetary policy, which has far-reaching effects.
In the paper session after that, one of the Bank's economists will provide an overview of the latest academic studies on climate-related financial risks. Then, leading scholars in this field will take the floor. Research on climate-related financial risks is advancing rapidly, and the field is wide-ranging.