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Policy Implications of Climate Change

Climate change is an aspect of the economy that cannot be ignored. This research theme focuses on understanding the implications for macroeconomic policies and how these policies can be coordinated to mitigate unnecessary risks. Monetary policy must address how climate change impacts financial markets and institutions as well as develop recommendations that support the growth in sustainable finance. Fiscal policy must identify which incentives can be successful at mitigating the impact of climate change. These policies must be co-ordinated and guide macroeconomic policy responses.

  • How do regulatory changes, aimed at climate risks, impact financial market players?
  • What are the implications of climate change for monetary policy and key adaptation requirements?
  • How can carbon taxation be used as a key mitigation tool?
  • Are climate change policy actions well-coordinated or do they impose unnecessary risks on society?

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