Accordingly, I believe policy makers must show humility in their understanding of how the economy works, and how policy works. Before the financial crisis many distinguished policy makers and academics treated economics and finance as if it had attained something of a natural science – replete with regularities upon which most economists could, and seemingly did, agree.
It is good to preserve a distinction between general climate policies, which are the responsibility of governments, and actions to ensure the proper management of climate risks, which are an integral part of financial authorities’ remit.