Some people argue that the dollar will move proportionately with the size of the import tax, so the import prices won’t go up at all in dollar terms. But, you know, that’s theory, and people worry about how it will actually work in practice. So, I think this is just going to be a very heavily debated topic in Washington in the coming weeks and months. Maureen O’Hara: I think we have time for maybe one or two more. Let’s let some people in the back again. Audience Member: Hi, Mr. Dudley, nice to hear from you. I’ve got lots of questions, but I guess everyone gets to only ask one. President Dudley: You can ask more than one, but I’ll only answer one. Audience Member: Okay, so, I was going to ask some sort of structuralist post-Ricardian question, but I’ll set that one aside. President Dudley: Thank you. Audience Member: On a similar vein, to what degree do you think that this challenging of facts and these threats about what is truth and, you know, journalistic integrity, to what degree did this affect the financial system and to what degree did this confidence in what the Wall Street Journal might say or the New York Times might say as a fact can affect confidence in financial institutions? And what remedies do you have, or does the Fed have, to combat that? President Dudley: 12 / 13  BIS central bankers' speeches  I don’t think I have any good real answers to that.
4 June 2021  Remarks for the panel discussion at the BIS-BdF-IMF-NGFS Green Swan 2021 Global Virtual Conference  Many thanks, Morgan, and thank you also to the BIS, Banque de France, IMF and NGFS for the invitation to take part in this panel. As you perfectly know in both my capacity as Governor of the Bank of Spain and member of the Governing Council of the ECB, and as Chair of the Basel Committee I can say that the topic of climate-related financial risks is one of the top priorities over the coming years. In both cases, I think the right way to frame the issue is to take our mandates as the starting point. In the case of the Basel Committee, as the primary global standard setter for banks, our mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. If we combine this mandate with the fact that, as has been discussed in various sessions during this conference, climate change poses risks to the financial sector (physical and transition risks) that can be significant in magnitude and therefore can impact financial stability at the global level, one should conclude there is a need for supervisors, regulators and, of course, the Basel Committee to act. In particular, we need to guarantee that individual banks and the banking system as a whole are adequately prepared to identify, measure and mitigate climate-related financial risks. This is the approach we are following at the Basel Committee level.