FRB - "Why Climate Change Matters for Monetary Policy and Financial Stability"

Title: Why Climate Change Matters for Monetary Policy and Financial Stability Source: FRB Data/Action: Speeches Date: 11/8/2019 Text Preview: ...Climate Change Matters for Monetary Policy and Financial Stability Governor Lael Brainard At "The Economics of Climate Change"... ...climate change bankruptcy. 3 Some insurers have discontinued policies in fire-prone areas, which, in turn, is changing the costs of homeownership and the risk profiles of previously underwritten mortgages. 4 Yet we can also see not far from here the promise of green innovation. 5 The Federal Reserve's Responsibilities So how does climate change... ...climate change than it was for globalization or the information technology revolution. Climate change is projected to increase the frequency and intensity of extreme weather events, raise average temperatures, and cause sea levels to rise. Climate risks are projected to have profound effects on the U.S. economy and financial system. 6 To fulfill our core responsibilities, it will be important for the Federal Reserve to study the implications of climate change...