The Bank of Japan believes that climate change could have a potentially large impact on the economy, prices, and the financial system in the future, which in turn could affect price and financial system stability. The Bank  For the history of central banks, see Edvinsson, Jacobson, and Waldenström, eds. (2018). See Edgeworth (1888) and Goodhart (1988).
6 How central banks have assumed this LOLR function is a matter of historical debate. For the case of the Bank of England, see Anson et al. (2017) and Book (2019). 7 I have discussed Henry Thornton's contributions to developing the idea of price stability and the lender of last resort (Wakatabe 2022b).