At first glance, it may be hard to connect the dots between climate change and Federal Reserve policy. Yet forecasts say that increasing environmental deterioration will have a significant impact on the US economy. In this incisive and accessible synopsis intended for financial professionals and executives, economist Glenn D. Rudebusch lays out the scope of the climate-related risks – including credit exposures, infrastructure damage and supply chain disruptions – that would challenge the Fed’s pursuit of macroeconomic stability.
In this summary, you will learn
- Why the US Federal Reserve needs to consider climate change effects in its monetary policy,
- How climate change poses risks to financial system stability, and
- How some central banks are addressing the threats associated with climate change.
About the Author
Glenn D. Rudebusch is an executive vice president at the Federal Reserve Bank of San Francisco.