A symposium on central banks and the climate crisis - from financial stability to price stability in sustainable central banking
This essay reflects on the limitations of the exclusive focus on the climate-related financial risk (CRFR) approach in shaping central banks’ engagement with climate change and a green transition. The authors make the case for a shift toward price stability mandates as the primary justification for central banks to engage with climate change, environmental degradation, and a green transition. They conclude with reflections on implications for monetary policy.
Simon Dikau and David Barmes, Just Money Symposium on Central Banks and the Climate Crisis, 11 April 2024.