Research Publication

September 2021 | Preliminary Paper

New Preliminary Paper: “Central Banking Challenges Posed by Uncertain Climate Change and Natural Disasters”

Lars Peter Hansen

Abstract

Climate change poses an important policy challenge for governments around the world. The challenge is made all that much more diļ¬ƒcult because of the multitude of potential policymakers involved in setting the policy worldwide. What then should be the role of central banks? How are climate change concerns similar to or distinct from those of other natural disasters? Clarity of ambition and execution will help to ensure that central banks maintain credibility. By adhering to their mandated roles, they retain their critically important distance from the political arena. Their credibility will be further enhanced by avoiding the temptation to exaggerate our understanding of climate change.

Journal: forthcoming in the Carnegie Rochester NYU Conference on Public Policy Series on Central Banking in 2020's and Beyond|Tags: Climate, Uncertainty, Uncertainty and Valuation|Export BibTeX >
@article{hansen2021central,
  title={Central Banking Challenges Posed by Uncertain Climate Change and Natural Disasters},
  author={Hansen, Lars Peter},
  journal={University of Chicago, Becker Friedman Institute for Economics Working Paper},
  number={2021-64},
  year={2021}
}