Climate change and central banks: what role for monetary policy?

References

• Alessi, L., Ossola, E., & Panzica, R. (2021). What greenium matters in the stock market? The role of greenhouse gas emissions and environmental disclosures. Journal of Financial Stability, 54), https://doi.org/https://doi.org/10.1016/j.jfs.2021.100869
   Google Scholar
• Allen, T., Dees, S., Boissinot, J., Caicedo Graciano, C. M., Chouard, V., Clerc, L., de Gaye, A., Devulder, A., Diot, S., Lisack, E., Pegoraro, F., Rabaté, M., Svartzman, R., & Vernet, L. (2020). “Climate-related scenarios for financial stability assessment: An application to France”, Banque de France Working Paper Series, No. 774.
   Google Scholar
• Andersson, M., Baccianti, C., & Morgan, J. (2020). “Climate change and the macroeconomy”, Occasional Paper Series, No 243, ECB.
   Google Scholar
• Annicchiarico, B., & Di Dio, F. (2015). Environmental policy and macroeconomic dynamics in a new keynesian model. Journal of Environmental Economics and Management, 69, 1–21. https://doi.org/https://doi.org/10.1016/j.jeem.2014.10.002
   Web of Science ®Google Scholar
• Baer, M., Campiglio, E., & Deyris, J. (2022). It takes two to dance: Institutional dynamics and climate-related financial policies. Ecological Economics, 190, 1–11. https://doi.org/https://doi.org/10.1016/j.ecolecon.2021.107210
   Google Scholar
• Banca d’Italia. (2019). The bank of Italy values sustainability in its financial investments: Information on ESG Criteria, May.
   Google Scholar
• Bank of England. (2020). The bank of England’s climate-related financial disclosure 2020, June.
   Google Scholar
• Bank of England. (2021). “Options for greening the bank of England’s corporate bond purchase scheme”, Discussion Paper, May.
   Google Scholar
• Bank of Finland. (2021). Annual report 2020.
   Google Scholar
• Banque de France. (2018). Responsible investment report 2018, March.
   Google Scholar
• Banque de France. (2019). Financial Stability Review, No 23, June.
   Google Scholar
• Batten, S. (2018). “Climate change and the macro-economy: A critical review”, Staff Working Paper, No 706, Bank of England.
   Google Scholar
• Batten, S., Sowerbutts, R., & Tanaka, M. (2016). “Let's talk about the weather: The impact of climate change on central banks”, Staff Working Paper, No 603, Bank of England.
   Google Scholar
• Batten, S., Sowerbutts, R., & Tanaka, M. (2020). Climate change: Macroeconomic impact and implications for monetary policy. In T. Walker, D. Gramlich, M. Bitar, & P. Fardnia (Eds.), Ecological, societal and technological risks and the financial sector (pp. 13–38). Palgrave Macmillan.
   Google Scholar
• Benmir, G., Jaccard, I., & Vermandel, G. (2021). “Green asset pricing”, Working Paper Series, No 2477, ECB.
   Google Scholar
• Benmir, G., & Roman, J. (2021). “Policy interactions and the transition to clean technology”, Working Paper, No 368, Centre for Climate Change Economics and Policy, LSE.
   Google Scholar
• Bingler, J. A., & Colesanti Senni, C. (2022). Taming the green swan: A criteria-based analysis to improve the understanding of climate-related financial risk assessment tools. Climate Policy, Vol. 22(Issue 3), 356–370. https://doi.org/https://doi.org/10.1080/14693062.2022.2032569
   Google Scholar
• BIS. (2019). “Green bonds: The reserve management perspective”, Quarterly Review, September.
   Google Scholar
• Bolton, P., & Kacperczyk, M. T. (2021). Do investors care about carbon risk? Journal of Financial Economics, 517–549. https://doi.org/https://doi.org/10.1016/j.jfineco.2021.05.008
   Google Scholar
• Boneva, L., Ferrucci, G., & Mongelli, F. P. (2021). “To be or not to be ‘green’: How can monetary policy react to climate change?”, Occasional Paper Series, No 285, ECB.
   Google Scholar
• Brainard, L. (2019). Why climate change matters for monetary policy and financial stability. Speech at the research conference “The Economics of climate change” sponsored by the Federal Reserve Bank of San Francisco, San Francisco, 8 November.
   Google Scholar
• Brand, C., Bielecki, M., & Penalver, A. (eds.) (2018). “The natural rate of interest: Estimates, drivers, and challenges to monetary policy”, Occasional Paper Series, No 217, ECB.
   Google Scholar
• Brunnermeier, M., & Landau, J. (2020). “Central banks and climate change”, VoxEU.org, 15 January.
   Google Scholar
• Burke, M., Davis, W. M., & Diffenbaugh, N. S. (2018). Large potential reduction in economic damages under UN mitigation targets. Nature, (No. 557), 549–553. https://doi.org/https://doi.org/10.1038/s41586-018-0071-9
   Google Scholar
• Campiglio, E. (2016). Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy. Ecological Economics, 121, 220–230. https://doi.org/https://doi.org/10.1016/j.ecolecon.2015.03.020
   Web of Science ®Google Scholar
• Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G., & Tanaka, M. (2018). Climate change challenges for central banks and financial regulators. Nature Climate Change, 8(6), 462–468. https://doi.org/https://doi.org/10.1038/s41558-018-0175-0
   Web of Science ®Google Scholar
• Carney, M. (2015). Breaking the tragedy of the horizon – climate change and financial stability. Speech at lloyd’s of London, 29 September.
   Google Scholar
• Cochrane, J. (2019). “An apocalyptic view of central banks”, The Grumpy Economist blog post, 30 May.
   Google Scholar
• Cochrane, J. (2020). “Challenges for central banks”, The Grumpy Economist blog post, 20 October.
   Google Scholar
• Coeuré, B. (2018). Monetary policy and climate change. Speech at a conference on “scaling up green finance: The role of central banks”, organised by the NGFS, the Deutsche Bundesbank and the council on economic policies, Berlin, 8 November.
   Google Scholar
• Dafermos, Y., Gabor, D., Nikolaidi, M., Pawloff, A., & van Lerven, F. (2021). Greening the eurosystem collateral framework: How to decarbonise the ECB’s monetary policy. New Economics Foundation. https://neweconomics.org/uploads/files/Collateral-Framework.pdf.
   Google Scholar
• Debelle, G. (2019). Climate change and the economy. Speech at the public Forum hosted by the Centre for policy development, Sydney.
   Google Scholar
• de Grauwe, P. (2019). “Green money without inflation”, Ivory Tower blog post, 26 February.
   Google Scholar
• De Haas, R., & Popov, A. (2019). “Finance and carbon emissions”, Working Paper Series, No 2318, ECB.
   Google Scholar
• Dietrich, A., Müller, G., & Schoenle, R. (2021). “The expectations channel of climate change: Implications for monetary policy”, CEPR Discussion Paper, No 15866, Centre for Economic Policy Research.
   Google Scholar
• Dikau, S., & Volz, U. (2021). Central bank mandates, sustainability objectives and the promotion of green finance. Ecological Economics, 184), https://doi.org/https://doi.org/10.1016/j.ecolecon.2021.107022
   PubMed Web of Science ®Google Scholar
• DNB. (2017). Annual Report 2016. De Nederlandsche Bank.
   Google Scholar
• DNB. (2021). Annual Report 2020. De Nederlandsche Bank.
   Google Scholar
• D’Orazio, P. (2021). Towards a post-pandemic policy framework to manage climate-related financial risks and resilience. Climate Policy, Vol. 21(Issue 10), 1368–1382. https://doi.org/https://doi.org/10.1080/14693062.2021.1975623
   Google Scholar
• D’Orazio, P., & Popoyan, L. (2019). Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies? Ecological Economics, 160(Issue C), 25–37. https://doi.org/https://doi.org/10.1016/j.ecolecon.2019.01.029
   Google Scholar
• ECB. (2021a). ECB “to invest in bank for international settlements’ green bond fund”, press release, 25 January.
   Google Scholar
• ECB. (2021b). “ECB presents action plan to include climate change considerations in its monetary policy strategy”, press release, 8 July.
   Google Scholar
• ECB. (2021c). “Climate change and monetary policy in the euro area”, Occasional Paper Series, No 271, ECB.
   Google Scholar
• Economides, G., & Xepapadeas, A. (2018). “Monetary policy under climate change”, Working Paper Series, No 247, Bank of Greece.
   Google Scholar
• European Commission. (2019). The european green deal, website.
   Google Scholar
• Ferrari, A., & Nispi Landi, V. (2020). “Whatever it takes to save the planet? Central banks and unconventional green policies”, Working Paper Series, No 2500, ECB.
   Google Scholar
• Ferrari, A., & Nispi Landi, V. (2022). "Towards a green economy: The role of central bank asset purchases”. Bank of Italy Temi di Discussione (Working Paper) No. 1358.
   Google Scholar
• Ferrari, M., & Pagliari, M. (2021). “No country is an island: International cooperation and climate change”, Working Paper Series, No 2568, ECB.
   Google Scholar
• Ferron, C., & Morel, R. (2014). “Smart Unconventional Monetary (SUMO) policies: Giving impetus to green investment”, Climate Report, No 46, IAEA.
   Google Scholar
• Feyen, L., Ciscar, J. C., Gosling, S., Ibarreta, D., & Soria, A. (2020). “Climate change impacts and adaptation in Europe”, JRC PESETA IV final report, EUR 30180 EN, Publications Office of the European Union.
   Google Scholar
• Fischer, Y. (2020). Global warming: Does the ECB mandate legally authorise a ‘green monetary policy’? mimeo.
   Google Scholar
• Hammond, G. (2012). “State of the art of inflation targeting”, CCBS Handbook, No 29, Bank of England.
   Google Scholar
• Honohan, P. (2019). “Should monetary policy take inequality and climate change into account?”, PIIE Working Paper, No 19-18.
   Google Scholar
• Hsiang, S., Kopp, R., Jina, A., Rising, J., Delgado, M., Mohan, S., Rasmussen, D. J., Muir-Wood, R., Wilson, P., Oppenheimer, M., Larsen, K., & Houser, T. (2017). Estimating economic damage from climate change in the United States. Science, Vol. 356(Issue 6345), 1362–1369. https://doi.org/https://doi.org/10.1126/science.aal4369
   Google Scholar
• IMF. (2021). Annual report on exchange arrangements and exchange restrictions 2020.
   Google Scholar
• IPCC. (2018). Global warming of 1.5°C, special report. Intergovernmental Panel on Climate Change.
   Google Scholar
• IPCC. (2021). Climate change 2021, the physical science basis, summary for policymakers. Intergovernmental Panel on Climate Change.
   Google Scholar
• Jourdan, S., & Kalinowski, W. (2019). “Aligning monetary policy with the EU’s climate targets”, Veblen Institute and Positive Money Working Paper.
   Google Scholar
• Koenig, E. F. (2013). Like a good neighbor: Monetary policy, financial stability, and the distribution of risk. International Journal of Central Banking, 9(2), 57–82.
   Google Scholar
• Krogstrup, S., & Oman, W. (2019). “Macroeconomic and financial policies for climate change mitigation: A review of the literature”, IMF Working Paper, No 19/185, International Monetary Fund.
   Google Scholar
• Lagarde, C. (2021). Climate change and central banking, Keynote speech at the ILF conference on Green Banking and Green Central Banking, 25 January.
   Google Scholar
• Lane, P. (2019). Climate change and the Irish financial system, Monsignor Pádraig de Brún memorial lecture, NUI Galway, 5 February.
   Google Scholar
• Laubach, T., & Williams, J. C. (2015). Measuring the natural rate of interest redux, Federal Reserve Bank of San Francisco Working Paper, No 2015-16.
   Google Scholar
• Matikainen, S., Campiglio, E., & Zenghelis, D. (2017). “The climate impact of quantitative easing”, Grantham Research Institute on Climate Change and the Environment Policy Paper.
   Google Scholar
• McConnell, A., Yanovski, B., & Lessmann, K. (2022). Central bank collateral as a green monetary policy instrument. Climate Policy, Vol. 22(Issue 3), 339–355. https://doi.org/https://doi.org/10.1080/14693062.2021.2012112
   Google Scholar
• McKibbin, W., Morris, A., Panton, A., & Wilcoxen, P. (2020). Climate change and monetary policy: Issues for policy design and modelling. Oxford Review of Economic Policy, Vol. 36(Issue 3), 579–603. https://doi.org/https://doi.org/10.1093/oxrep/graa040
   Google Scholar
• Monnin, P. (2018). “Central banks should reflect climate risks in monetary policy operations”, SUERF Policy Note, No 41.
   Google Scholar
• NGFS. (2019). A sustainable and responsible investment guide for central banks’ portfolio management, Technical Document, Network for Greening the Financial System, Paris, October.
   Google Scholar
• NGFS. (2020a). Climate change and monetary policy: Initial takeaways, Technical Document, Network for Greening the Financial System, Paris, October.
   Google Scholar
• NGFS. (2020b). NGFS climate scenarios for central banks and supervisors, June.
   Google Scholar
• NGFS. (2021). Adapting central bank operations to a hotter world: Reviewing some options, March.
   Google Scholar
• Niedźwiedzińska, J. (2018). “Inflation targeting: Institutional features of the strategy in practice”, NBP Working paper, No 299.
   Google Scholar
• Pagliari, M. (2021). “LSIs’ exposures to climate change related risks: An approach to assess physical risks”, Working Paper Series, No 2517, ECB.
   Google Scholar
• Papoutsi, M., Piazzesi, M., & Schneider, M. (2021). “How unconventional is green monetary policy?”, JEEA-FBBVA Lecture at ASSA, January, mimeo.
   Google Scholar
• Pereira da Silva, L. (2019). Research on climate-related risks and financial stability: An ‘epistemological break’? Speech at the conference of the central banks and supervisors network for greening the financial system (NGFS), Paris, 17 April.
   Google Scholar
• Powell, J. (2019). “Testimony before the house financial services committee hearing on “monetary policy and the state of the economy”, 10 July, Washington, DC.
   Google Scholar
• Rudebusch, G. D. (2019). “Climate change and the federal reserve”, FRBSF Economic Letter, No 9, Federal Reserve Bank of San Francisco.
   Google Scholar
• Schnabel, I. (2020). When markets fail – The need for collective action in tackling climate change. Speech given at the european sustainable finance summit, Frankfurt am main, 28 September.
   Google Scholar
• Schnabel, I. (2021a). From green neglect to green dominance? Speech given at the “greening monetary policy – central banking and climate change” held at the Cleveland Fed conversations on central banking, 3 March.
   Google Scholar
• Schnabel, I. (2021b). From market neutrality to market efficiency. Speech given at the ECB DG-research symposium “climate change, financial markets and green growth”, 14 June.
   Google Scholar
• Schoenmaker, D. (2021). Greening monetary policy. Climate Policy, Vol. 21(Issue 4), 581–592. https://doi.org/https://doi.org/10.1080/14693062.2020.1868392
   Google Scholar
• Sheedy, K. D. (2014). Debt and incomplete financial markets: A case for nominal GDP targeting. Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, 45(1 (Spring)), 301–361.
   Google Scholar
• Solana, J. (2018). “The power of the eurosystem to promote environmental protection”, University of Oslo Faculty of Law Research Paper, Vol. 2018-23.
   Google Scholar
• Stern, N. H. (2007). The economics of climate change: The Stern review. Cambridge University Press.
   Google Scholar
• Svartzman, R., Bolton, P., Despres, M., Pereira Da Silva, L., & Samama, F. (2021). Central banks, financial stability and policy coordination in the age of climate uncertainty: A three-layered analytical and operational framework. Climate Policy, Vol. 21(Issue 4), 563–580. https://doi.org/https://doi.org/10.1080/14693062.2020.1862743
   Google Scholar
• Svensson, L. (2009). “Flexible inflation targeting – Lessons from the financial crisis”, in Towards a new framework for monetary policy? Lessons from the crisis, De Nederlandsche Bank workshop, Amsterdam, 21 September.
   Google Scholar
• Tol, R. (2018). The economic impacts of climate change. Review of Environmental Economics and Policy, 12(1), 4–25. https://doi.org/https://doi.org/10.1093/reep/rex027
   Web of Science ®Google Scholar
• Van der Ploeg, F. (2020). “Macro-financial implications of climate change and the carbon transition”, Prepared for the session “Implications of fundamental global changes for central banks” of the ECB Forum on Central Banking, 11-12 November 2020.
   Google Scholar
• Van ‘t Klooster, J., & van Tilburg, R. (2020, September). Targeting a sustainable recovery with green TLTROs. Positive Money Europe.
   Google Scholar
• Walsh, C. (2009). Inflation targeting: What have we learned? International Finance, 12(Issue 2), 195–233. https://doi.org/https://doi.org/10.1111/j.1468-2362.2009.01236.x
   Google Scholar
• Weitzman, M. L. (2009). On modeling and interpreting the economics of catastrophic climate change. Review of Economics and Statistics, 91(1), 1–19. https://doi.org/https://doi.org/10.1162/rest.91.1.1
   Web of Science ®Google Scholar
• Woodford, M. (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton University Press.
   Google Scholar