Monetary Policymaking Under Climate Uncertainty

dc.contributor.author Kantur, Zeynep
dc.contributor.author Özcan, Gülserim
dc.contributor.other Economics
dc.date.accessioned 2024-07-05T15:51:01Z
dc.date.available 2024-07-05T15:51:01Z
dc.date.issued 2022
dc.department Atılım University en_US
dc.department-temp Başkent Üniversitesi, İşletme Fakültesi, İktisat Bölümü, Ankara, Türkiye Atılım Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Ankara, Türkiye en_US
dc.description.abstract The most effective policy to prevent climate change is the decarbonization of the production process. Decarbonization, which should be planned and not delayed, will cause some assets to become idle or stranded, either entirely or partially. Therefore, the transition to a low-carbon economy results in sudden and unexpected fluctuations in asset prices. These shocks will affect the relevant sector and all production sectors with a domino effect and deteriorate financial stability. To the extent that these shocks are predictable, policymakers can prepare for the repercussions of green financial transformation. However, the tools needed to pre-measure them are new and dependent on many economic variables. Therefore, policymakers need a road map to act under this uncertainty. This paper theoretically provides insights into central banks’ role/engagement under climate change ambiguity. The paper shows that the less the central bank trusts its policy model, the higher the sensitivities of inflation, output-gap, and asset price-gap to climate-related shocks. Hence, an aggressive response of monetary policy is required in the face of uncertainty. en_US
dc.identifier.citationcount 0
dc.identifier.doi 10.20409/berj.2022.390
dc.identifier.endpage 591 en_US
dc.identifier.issn 2619-9491
dc.identifier.issue 4 en_US
dc.identifier.startpage 579 en_US
dc.identifier.trdizinid 1171685
dc.identifier.uri https://doi.org/10.20409/berj.2022.390
dc.identifier.uri https://search.trdizin.gov.tr/tr/yayin/detay/1171685/monetary-policymaking-under-climate-uncertainty
dc.identifier.uri https://hdl.handle.net/20.500.14411/4228
dc.identifier.volume 13 en_US
dc.institutionauthor Akbal, Gülserim Özcan
dc.language.iso en en_US
dc.relation.ispartof Business and Economics Research Journal en_US
dc.relation.publicationcategory Makale - Ulusal Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/openAccess en_US
dc.title Monetary Policymaking Under Climate Uncertainty en_US
dc.type Article en_US
dspace.entity.type Publication
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