Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Climate Stress Tests
In this episode of Monetary Policy Explained, Lucas and Luna explore a fresh angle in central banking: climate stress tests. With regulators increasingly asking banks to model how extreme weather and the transition to a low-carbon economy could hit their balance sheets, the hosts break down the logic behind these exercises and the numbers that matter. They explain how the Bank of England's 2021 exercise, the Federal Reserve's 2023 pilot scenario, and the European Central Bank's 2022 economy-wide test differ in design and purpose. They dig into the specific transmission…
The skinny
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