Fossil fuel importers can apply various climate and trade taxes to encourage fossil fuel-dependent countries to cooperate on climate mitigation, and fossil fuel-dependent countries can respond with alternative diversification and cooperation strategies. This paper runs macroeconomic model...

This paper examines the role of monetary policy in fossil fuel exporters at different horizons. The main argument is that central banks in these economies need to look beyond the horizon of the business cycle. In the short run, (independent) monetary policy should flexibly target inflation. In...