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Climate change: Macroeconomic impact and implications …

1 Climate change : Macroeconomic impact and implications for monetary policy (Book chapter in: Ecological, Societal, and Technological Risks and the Financial Sector; forthcoming: July 2020) Sandra Batten, Rhiannon Sowerbutts and Misa Tanaka Bank of England1 Abstract Climate change and policies to mitigate it could affect a central bank s ability to meet its monetary stability objectives. Climate change can affect the macroeconomy both through gradual warming and the associated Climate changes ( total seasonal rainfall and sea level increased) and through increased frequency, severity and correlation of extreme weather events (physical risks).

support the economic policy of Her Majestys Government, including its objectives for growth and employment. The US Federal Reserve¶s mandate includes three goals of equal priority: maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

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  Macroeconomics, Economic, Implications, Change, Climate, Climate change, Impact, Macroeconomic impact and implications

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