implications for what constitutes the core of most central banks' mandate: price stability. Carbon policy shocks are identified … from high-frequency changes in carbon futures price around regulatory events. The shock series is combined with French firm …-level survey data. We document that a change in the price of carbon increases firms' inflation expectations. We then investigate …

banks' price stability mandate. Carbon policy shocks are identified using high-frequency identification and combined with … French firm-level survey data. A change in carbon price increases firms' inflation expectations as well as their own expected … and realized price growth. The effect on price expectations is more persistent than on actual price growth, resulting in …