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The Best Tool to Fight Climate Change

18 9 0
20.01.2020

AMSTERDAM – Although many supporters of US President Donald Trump seemingly believe that global warming is a hoax, almost everyone else agrees that climate change should be at the top of the list of important policy issues. Identifying the problem, however, is not much use unless we also identify the appropriate tools to address it.

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    In my own field of specialization, central bankers have caught climate-change fever. Under the leadership of Christine Lagarde, for example, both the International Monetary Fund and now the European Central Bank have declared the planet’s climate health to be “mission critical.”

    To be sure, financial institutions must fundamentally rethink some things in the light of climate change. For example, a bank or insurance company calculating........

    © Project Syndicate