If valid, this view would be very disquieting to central bankers because the traditional view has been exactly the opposite, i.e., that stability of prices of goods and services would stimulate market participants to concentrate on the real factors that affect the fundamentals of valuation of financial assets thus contributing to low volatility in their respective markets.
Banks and financial institutions may have to to step up their engagement with their corporate customers on ensuring sustainability-focused financing and other support services to help them transition towards a low-carbon economy while reducing their own carbon footprint. The financial sector can channel resources towards green projects / businesses by offering suitable and customised products to businesses. 19.