In very general terms, there might be two forces at play. First, the Phillips curve might have changed. It might, for instance, have flattened, or it might have shifted downwards. Empirically, it is very hard to determine which – if either – of the two things has happened.
We also support multilateral development institutions in tapping their expertise to provide targeted capacity-building assistance to developing countries in need. The financial system can play a positive role in supporting green transition and managing climate-related risks. Most Asian countries attach great importance to green finance and economic transition.