Discussion Notes

Climate Financial Risks: Assessing Convergence, Exploring Diversity

, and | 9 December 2020
Discussion Notes, Monetary | Tags: Climate Risk, Financial Supervision, Monetary Policy Operations, Risk Metrics
Climate risks are now fully recognized as financial risks by asset managers, investors, central banks, and financial supervisors. As a result, the integration of climate risk metrics into risk management processes is moving up agendas worldwide. In that context, a rapidly growing number of market ... continue reading

Tax Expenditures and Inequality

| 16 June 2020
Discussion Notes, Fiscal | Tags: Inequality, Sustainable Development, Tax Expenditures
Tax expenditures are used widely by governments across the world to pursue different public policy goals including boosting innovation and R&D, job creation, greening the economy as well as mitigating inequality and tackling poverty. Yet, besides their stated goals (which are often aligned with a ... continue reading

Scenarios for Fiscal Space. Adapting to the Long-Term Challenges of Climate Change

| 28 January 2020
Discussion Notes, Fiscal | Tags: Climate Change, Fiscal Space, IMF
Climate change poses significant challenges for governments seeking to assess their long-run financial condition. Looking forward, climate change is likely to threaten multiple aspects of a country’s economy. Governments will necessarily be required to provide support in adapting to these challenges. While considerable uncertainty exists ... continue reading

Should Monetary Policy Take Inequality and Climate Change into Account?

| 24 January 2020
Discussion Notes, Monetary | Tags: Climate Change, Governing Finance, Inequality
Should central banks take more account of ethical issues, notably the impact of monetary policy actions on the distribution of income and wealth and on efforts to combat climate change, in the design and implementation of the wider monetary policy toolkit they have been using ... continue reading

Legitimacy Challenges to Central Banks: Sketching a Way Forward

| 19 January 2020
Discussion Notes, Monetary | Tags: Central Banks, Governing Finance
Delegation to independent agencies (IAs) can reap real benefits for policy making. In the case of monetary policy, it shores up the credibility of the central bank. However, it is generally accepted that the discretion of IAs needs to be constrained to ensure their legitimacy. This ... continue reading