Guest essay by Eric Worrall
What is the difference between a centrally planned Communist economy, and an economy where Central bankers punish businesses which defy their investment directives?
Global Warming Is a Central Bank Issue
13 April 2018, 3:30 PM
Last week, central bank governors from the U.K., France and the Netherlands met in Amsterdam to discuss how to adapt regulation to the risks posed by climate change. Together with five other institutions (from China, Germany, Mexico, Singapore and Sweden), these central banks have formed the “Network for Greening the Financial System” (NGFS). This group has two objectives: sharing and identifying best practices in the supervision of climate-related risks, and enhancing the role of the financial sector in mobilizing “green” financing.
To do so, central bankers may need to extend the supervisory horizon beyond their usual time span. Climate change may only pose a threat for the…
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