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3 - Central Banking and Climate Change

Published online by Cambridge University Press:  30 October 2020

By
Kern Alexander  and
Paul G. Fisher
Edited by
Paul G. Fisher
Paul G. Fisher
Affiliation:
University of Cambridge
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Summary

Sets out what central banks can and must contribute to the sustainability agenda, especially on climate change, given their existing mandates and objectives. That includes monetary policy, financial stability, prudential regulation, balance sheet-management and even bank notes. Central banks do not need and should not wait for changes to their legal duties, because climate change is a material influence on all their existing responsibilities. Meanwhile, macroeconomic stability is a pre-requisite for the wider sustainability agenda and so there needs to be a continuing priority focus on monetary and financial stability.

Keywords

central banksclimate changemonetary policyfinancial stabilityprudential regulationBaselsustainability
Type
Chapter
Information
Making the Financial System Sustainable , pp. 49 - 74
Publisher: Cambridge University Press
Print publication year: 2020

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