We explore the design of climate stress tests to assess and manage macroprudential risks
from climate change in the financial sector. We review the climate stress scenarios currently …

Transitioning to a low‐carbon economy will entail sweeping transformations of energy and
economic systems. A growing research body has raised concerns about the effect of such …

Limiting global warming to well below 2° C may pose threats to macroeconomic and
financial stability. In an estimated Euro Area New Keynesian model with financial frictions …

We study the transmission mechanism of a Green QE, defined as a policy that tilts the central
bank's balance sheet toward green bonds, that is bonds issued by non-polluting firms. We …

We analyze the inflationary effects of a gradual increase in a carbon tax in the textbook New
Keynesian model. The policy gradually reduces emissions, a key feature of the green …

We study the preferential treatment of green bonds in the central bank collateral framework
as a climate policy instrument within a DSGE model with climate and financial frictions. In the …

This article accounts for the impact of positive and negative shocks of the news-related
Climate Policy Uncertainty (CPU) and the novel Economist Intelligence Unit's report-based …

This paper investigates the emergence of carbon and green bubbles and their impacts on
macroeconomic performance and the environment, with a particular focus on identifying the …

A disorderly transition to a low-carbon economy may pose significant costs for both financial
and nonfinancial firms through the stranding of physical assets, firms' defaults, and volatility …

Given the recent debate on the role of central banks under climate change, this research
theoretically investigates the mix of monetary and climate policy and provides insights for …