Climate change has profound effects not only for societies and economies, but also for central banks’ ability to deliver price stability in the future. This paper starts by documenting why climate change matters for monetary policy: it impacts the economic variables relevant to setting the...

Recent research in financial economics has shown that rare large disasters have the potential to disrupt financial sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback effects on the macroeconomy. Research on disaster risks has...

Chapter 1 – Introduction -- Chapter 2 -Sustainable Growth, Welfare and Short-termism -- Chapter 3 - Non-Sustainable Growth, Resource Extraction, and Boom-Bust Cycles -- Chapter 4 - Fossil Fuel Resources, Environment and Climate Change -- Chapter 5 - Limits on the Extraction of Fossil Fuels,-...

The world is currently undergoing an historic energy transition, driven by increasingly stringent decarbonisation policies and rapid advances in low-carbon technologies. The large-scale shift to low-carbon energy is disrupting the global energy system, impacting whole economies, and changing the...