Conference Agenda

Climate change may present challenges for macroeconomic policy and central banking. This session will explore how climate change and the global efforts to reach net-zero emissions will affect macroeconomic variables such as inflation and output, and their implications for monetary policy. The session will draw insights from recent analyses by the Network for Greening the Financial System (NGFS), a global network of central banks and financial supervisors.

Extreme weather events, such as floods and hurricanes, disrupt supply chains, destroy physical capital and reduce productivity, while the shift towards a lower-carbon economy affects how firms produce and how households consume. These changes increasingly have consequences for inflation dynamics, economic growth, and interest rates—issues central to both monetary policymakers and environmental economists.

The session will be an opportunity for academics and central bankers to exchange on relatively novel questions in the intersection between macroeconomics and environmental economics:

- How do climate change and climate policies affect the macroeconomy and the monetary policy transmission channels? What are the latest findings on these issues?

- Which trade-offs may central bankers have to face?

- What are the monetary policy implications of the changing environment?