1. An Overview of the Sustainability-Financial Risk Nexus -- 2. The Impact of Climate Change on the Banking and Insurance Industries -- 3. The Transition to a Low-carbon Economy and Stranded Assets -- 4. Sustainability-related Risks, Risk Management Frameworks and Financial Disclosure -- 5....

We extended the Cole and Kehoe model (1996) by adding trade and debt denominated in national currency. We then evaluated some external debt defaults and steep national currency devaluations occurred during last decades. Although default is unlikely, steep devaluation has been repeatedly...