Dow Lecture with James Talbot: Climate Change, the Macroeconomy and Monetary Policy

Climate change – and the policy response of governments at home and abroad to it – will affect the macroeconomy in a number of ways.  If climate shocks, or climate-related policies influence output and inflation in the short-run, monetary policy makers will need to consider their impact.  Research on the macroeconomic impacts of climate change and the transition is burgeoning but work to make the link across to the potential implications for monetary policy remains relatively underexplored.

James Talbot is Executive Director of the Bank of England's International Directorate, as well as the Bank's Executive Sponsor for Climate and Chair of the Workstream on Monetary Policy in the Network for Greening the Financial System (NGFS).

Drawing on his role at NGFS, James Talbot will discuss how central banks are beginning to think about the impact of climate change when discharging their statutory objective to deliver price stability; the challenges identified so far; and how the international central banking community is working together to build up a shared understanding of the issues while recognising the uneven global impacts.