Creating incentives to protect the climate, on the other hand, is a matter for politicians. 2.2 Monetary policy The importance of climate change and climate policy for central banks is not confined to our role as financial supervisors and guardians of financial stability, though.
Long-run growth depends on the efficiency with which resources are allocated, the ease of doing business, the incentives for investment and confidence in public institutions. Making strides in these areas requires structural reforms aimed at supporting investment, enhancing productivity and increasing flexibility in the markets for labour, goods and services.