Böser, Florian; Colesanti Senni, Chiara - 2021 - This Version: June 2, 2021
Policy makers have argued that markets are not pricing climate risk appropriately yet, which may lead to a … depend on the climate risk exposure of the assets held by the borrowing bank. If private agents and the central bank have … eliminates financial instability. Moreover, we show that investment into climate risk mitigation reduces the need for central …