By no means do I want to be the “spirit, ever, that denies”. 2 But in this concrete instance, the situation is clear: finding – or financing – the solution to the problems of climate change appears, at first glance, somewhat remote from the primary mandate of a central bank. But let’s turn to the present to explain this verdict in more detail.
Macroeconomic effects It is not enough to link to newspaper reports, nor to quote a World Economic Forum report, that has ranked climate risks as both high-impact and high-likelihood events3 in order to create a new mandate or objective for a central bank.4 Is there convincing evidence for us to adjust our monetary policy strategy because increased risks of more frequent and more devastating future climatic events could influence economic dynamics in the medium term, the monetary policy horizon?