As it is becoming clear that climate change will exert a major impact on inflation, economic growth, and financial system stability, central banks and financial regulators have increasingly recognized that they can no longer ignore climate change and other environmental issues. In general,...

Chapter 1. Introduction -- Chapter 2. Two forms of the unknown -- Chapter 3. The economics of external shocks -- Chapter 4. The traditional way to do it -- Chapter 5. The real tragedy of the commons -- Chapter 6. Upgrading the system -- Chapter 7. The great leverage -- Chapter 8. Three...

In response to the worst economic crisis since the 1930s, government budgets and central banks have provided substantial support for aggregate demand and for the financial sector. In the process, fiscal balances have deteriorated, government liabilities and central bank balance sheets have been...