Finance
Central Banks Write How-to Guide to Better Assess Climate Risks
- NGFS outlines how global warming can impact monetary policy
- Various scenarios highlight weaknesses in financial system
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Global central banks have developed a “concrete toolbox” to better prepare for the risks climate change poses to the economy.
Damage to supply chains, changes in labor-migration patterns and more frequent corrections to short-term inflation expectations as a result of disruptions are just some of the challenges policy makers will encounter in the future. A group of central banks known as the Network for Greening the Financial System says its new reference scenarios and a guide to analysis will help them navigate the implications of global warming.