A key feature of the euro area government bond markets in 2011 was the diverging development in yields across countries mainly as a consequence of the markets’ perceptions of the individual countries’ fiscal fundamentals. The actions of Central Banks to support liquidity in the global financial system contributed to ease tensions in the sovereign debt markets.
2 Nevertheless, I think it’s important to continue doing high-quality academic research regarding the role that climate plays in economic outcomes, such as the work presented at today’s conference. In what follows, I want to be careful not to conflate my views on climate change itself with my views on how we should deal with financial risks associated with climate change.