Central Bankers Differ Over How to Handle Climate Change

The transcript discusses the impact of climate change on the economy and the importance of international cooperation. It emphasizes that while central banks have a specific mandate, they must consider climate change to avoid financial instability. The text outlines guiding principles for using available instruments and stresses that filling gaps in public policy is not the role of central banks, but rather the responsibility of governments.

How might climate change affect monetary policy transmission?

• By impairing monetary policy transmission

• By stabilizing financial markets

• By improving economic growth

• By reducing inflation

What is necessary to address the climate change issue effectively?

• National policies

• International cooperation

• Local government initiatives

• Individual actions

What role do central banks NOT seek to play in climate policy?

• Climate policymakers

• Monetary policy enforcers

• Financial regulators

• Economic advisors

What should central banks focus on according to their mandate?

• Creating new climate policies

• Using available instruments to maintain stability

• Filling in for government policies

• Ignoring climate change impacts

What should central banks avoid doing in terms of public policy?

• Monitoring financial markets

• Collaborating with international bodies

• Implementing new regulations

• Filling in where governments haven't acted