The effects of climate change and climate mitigation policies have become an actively debated topic in macroeconomic and central bank circles over the last few years. Some central banks now have references to supporting government climate change policies within the secondary objectives of their remits, including the Bank of England. Not everyone agrees on what role central banks should play in achieving climate change objectives. To me, one thing is clear: When climate change has macroeconomic effects – whether physical impacts from extreme weather events and higher average temperatures or transition effects ... (full story)