The idea is for them to form the macroeconomic framework for analyses of how vulnerable our ﬁnancial system will be under various climate scenarios. Stress tests planned for the years 2022-23 to capture the impacts of various CO2 price paths on ﬁnancial stability in Germany represent a key milestone in this respect.
But at the same time, some US states, particularly the former manufacturing powerhouses in the “Great Lakes” region, have seen a long episode of below average growth. Below average performance of the region – and particularly weaker growth rates in the states of Michigan and Ohio – are related to strong reliance on manufacturing.