Inflation then falls back to the targeted rate. For clarity’s sake I should perhaps add that this reasoning presupposes that inflation expectations are not affected. The exchange rate’s reactions to monetary policy measures are not entirely given. Text books say that the exchange rate weakens in a scenario with monetary stimuli and appreciates when the instrumental rate is increased. That should normally be the case as long as nothing else happens. But the fact  2  BIS Review 30/2001  remains that there have been many instances all over the world of exchange rates appreciating even though instrumental rates have been cut and vice versa. In such situations market players have often attached greater weight to the prospects of faster or slower economic growth — provided the rate of inflation is expected to remain low. So it is not entirely clear how the exchange rate will ultimately be affected when the intrumental rate is raised or lowered. Were it the case that regulatory changes always refer to a particular group of goods or services, one might consider excluding this group from the price index that monetary policy aims to stabilise. A disadvantage of this might be that monetary policy would be guided by an indicator of inflation that is not the most relevant one for consumers. On the other hand, it could confer the advantage of making monetary policy simpler and more predictable. In practice, however, adjusting the consumer price index for shocks of this type is virtually impossible.
In particular,   Financial implications are often not yet disclosed    Disclosures are often in multiple reports making comparisons harder    Disclosure varies by industry and region, with higher percentages of European firms, as well as higher shares of those on the climate frontline – such as the energy sector – disclosing information aligned with the recommendations; and    Disclosure is weakest with respect to strategic resilience which is the topic of greatest interest to most capital providers. As they look to enhance their disclosures, TCFD members are supported by various TCFD Preparers’ Forums, which have been established to help firms prepare disclosures, for example the Oil and Gas industry group convened by the World Business Council on Sustainable Development and the Institute of International Finance for banks. A4S’ implementation workshops are exactly the sort of collaborative processes which will help ensure that the TCFD recommendations are implemented in a consistent manner. This is particularly important for more complex parts of the TCFD framework like scenario analysis and its interpretation. As A4S has identified, managing climate-related risks will require firms to assess the resilience of their business strategies: where they are now, where they are going and how they will get there. 10  See TCFD (2018), ‘2018 Status Report’, September 2018.