Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298991 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 9 [Issue:] 3 [Year:] 2020 [Pages:] 45-59
Publisher: 
Sciendo, Warsaw
Abstract: 
Timely and effective climate action is a precondition for the stability of the global financial system and for long-term, inclusive prosperity. Because the Federal Reserve and other central banks share responsibility with legislative and regulatory authorities and other experts for maintaining financial system stability, the Fed also shares responsibility for effective climate action. For climate action to be effective in reducing greenhouse gas emissions and limiting global warming, it must be widespread, it must be substantive, and it must come sooner rather than later. The new low-interest rate monetary policy environment favors sustainable long-term, but also high-risk, investments. Market participants need timely guidance and support from regulatory and supervisory authorities, including the Federal Reserve, in order to expedite global fund allocations to low-carbon assets.
Subjects: 
Climate Change
Central Bank Independence
Federal Reserve
Financial System Stability
Low-Carbon Transition
JEL: 
E44
E58
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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