This means that regulations and taxes have to be reviewed constantly as the situation requires so as not to impede firms’ innovative efforts and to help firms earn the fruit of such efforts in the form of corporate profits.
Our inability to halt nature’s response to rising global temperatures has forced a global dialogue to which we must turn our attention. Globally, central bankers are trying to integrate issues related to climate change into the monetary policy framework, and are building models to assess the financial implications of climate change. And we must do likewise.