Let's Talk About the Weather: The Impact of Climate Change on Central Banks

@article{Batten2016LetsTA,
  title={Let's Talk About the Weather: The Impact of Climate Change on Central Banks},
  author={Sandra Batten and Rhiannon Sowerbutts and Misa Tanaka},
  journal={SRPN: Carbon Reduction (Topic)},
  year={2016}
}
This paper examines the channels via which climate change and policies to mitigate it could affect a central bank’s ability to meet its monetary and financial stability objectives. We argue that two types of risks are particularly relevant for central banks. First, a weather-related natural disaster could trigger financial and macroeconomic instability if it severely damages the balance sheets of households, corporates, banks, and insurers (physical risks). Second, a sudden, unexpected… 
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