The ECB’s primary mandate is to maintain price stability. So why do we talk about climate change? In this post on The ECB Blog, we show how a hotter climate affects prices and the economy and discuss how this impacts the task of central banks. A hotter climate leads to more frequent and more devastating extreme climate events – at significant economic costs. Current global efforts to prevent climate change fall far short of what is necessary to prevent catastrophic consequences. This blog describes how a changing climate adversely affects the economy. As such, climate change could hinder central banks as they go ... (full story)