Delays In Climate Transition Can Increase Financial Tail Risks A Global Lesson From A Study In Mexico

Author : Mr. Dimitrios Laliotis,Sujan Lamichhane
Publisher : International Monetary Fund
Page : 36 pages
File Size : 53,8 Mb
Release : 2023-08-25
Category : Business & Economics
ISBN : 9798400252433

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Delays in Climate Transition Can Increase Financial Tail Risks: A Global Lesson from a Study in Mexico by Mr. Dimitrios Laliotis,Sujan Lamichhane Pdf

This paper explores a novel forward-looking approach to study the financial stability implications of climate-related transition risks. We develop an integrated micro-macro framework with a new class of scenario called delayed-uncertain pathways. An additional stochastic financial modeling layer via a jump-diffusion process is considered to capture continuously changing risks, as well as the potential of large/sudden shocks in the financial markets. We applied this approach to study transition risks in the Mexican financial sector. But the implications are global in scope, and the framework is easily adaptable to other countries. We quantify the projections of future distributions of various risk metrics and, hence, the evolving tail risks due to compounding effects from delays in transitioning to a low-carbon economy and the consequent uncertainty of the future policy path. We find that the longer the delays in transition, the larger the future tail financial risks, which could be material to the overall system.

Author : International Monetary Fund. Western Hemisphere Dept.
Publisher : International Monetary Fund
Page : 105 pages
File Size : 44,5 Mb
Release : 2023-11
Category : Business & Economics
ISBN : 9798400258862

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Mexico by International Monetary Fund. Western Hemisphere Dept. Pdf

A broad-based expansion is underway, with robust domestic demand. Inflation has started to recede, and prudent fiscal policy has kept public debt in check. The changes underway in the global economy—including a shift to a lower carbon economy and the reshaping of supply chains—provide an important opportunity for Mexico. However, a broad set of reforms will be needed to translate this opportunity into improved employment prospects and better living standards.

Author : Mr. Dimitri G Demekas,Pierpaolo Grippa
Publisher : International Monetary Fund
Page : 45 pages
File Size : 53,9 Mb
Release : 2021-12-17
Category : Business & Economics
ISBN : 9781616356521

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Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy: A Survey of the Issues by Mr. Dimitri G Demekas,Pierpaolo Grippa Pdf

There are demands on central banks and financial regulators to take on new responsibilities for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But their powers should not be overestimated. Their diagnostic and policy toolkits are still in their infancy. They cannot (and should not) expand their mandate unilaterally. Taking on these new responsibilities can also have potential pitfalls and unintended consequences. Ultimately, financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town.’

Author : Bozena Radzewicz-Bak,Jérôme Vacher,Gareth Anderson,Filippo Gori,Mahmoud Harb,Ms. Yevgeniya Korniyenko,Ms. Jiayi Ma,Moheb T Malak,Ms. Dorothy Nampewo,Sahra Sakha
Publisher : International Monetary Fund
Page : 80 pages
File Size : 51,5 Mb
Release : 2024-02-12
Category : Business & Economics
ISBN : 9798400255250

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Preparing Financial Sectors for a Green Future by Bozena Radzewicz-Bak,Jérôme Vacher,Gareth Anderson,Filippo Gori,Mahmoud Harb,Ms. Yevgeniya Korniyenko,Ms. Jiayi Ma,Moheb T Malak,Ms. Dorothy Nampewo,Sahra Sakha Pdf

The financial sectors of the Middle East and Central Asia (ME&CA) countries should play an important role in supporting climate-related policies for the region. The sectors are vulnerable to downside risks from climate-related shocks and at the same time offer the potential to help fill the financing gap for needed adaptation and mitigation strategies. Successful approaches to climate change in the region therefore need to coherently integrate financial sector strategies within the overall policy framework to meet this important challenge. To this end, policymakers must ensure that financial sectors are prepared for a green future. This means enhancing the resilience of banks to physical and transition risks from climate change and boosting the capacity of insurance sectors to speed recovery from climate-related disasters and help offset economic costs. Moreover, policies are needed to foster an enabling environment for private green finance, attract investment from other official entities, such as sovereign wealth funds (SWF), and facilitate support from international financial institutions and multilateral development banks. In the near term, policy efforts should center around better understanding and measuring climate-related risks. This includes prioritizing the implementation of methodologies for quantifying and reporting such risks, promoting their transparent disclosure by financial institutions, and strengthening frameworks for their forecasting and analyzing. Over the medium term, governments can play an important role in supporting green finance through incentives and market mechanisms, phasing-out energy subsidies, and introducing new tools and markets (such as carbon pricing frameworks), which can stimulate demand for investment in green technologies. The paper offers a unique regional perspective on climate risks in ME&CA's financial sectors and outlines the road ahead in transitioning to a green future. It is the first to evaluate the impact of climate change on banking institutions in the region and assess the capacity of insurance in mitigating climate-related damages and losses. It contributes to the existing literature by synthesizing the size and nature of regional financing needs for adaptation and mitigation and discussing both opportunities and challenges for the development of green finance. The paper's policy recommendations provide guidance to policymakers on how to develop regulatory responses to enhance financial sustainability amid climate change risks.

Author : Signe Krogstrup,William Oman
Publisher : International Monetary Fund
Page : 58 pages
File Size : 41,8 Mb
Release : 2019-09-04
Category : Business & Economics
ISBN : 9781513511955

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Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature by Signe Krogstrup,William Oman Pdf

Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.

Author : Financial Crisis Inquiry Commission
Publisher : Cosimo, Inc.
Page : 692 pages
File Size : 55,6 Mb
Release : 2011-05-01
Category : Political Science
ISBN : 9781616405410

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The Financial Crisis Inquiry Report by Financial Crisis Inquiry Commission Pdf

The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Author : Dean T. Jamison,Hellen Gelband,Susan Horton,Prabhat Jha,Charles N. Mock,Rachel Nugent
Publisher : World Bank Publications
Page : 426 pages
File Size : 55,8 Mb
Release : 2017-12-06
Category : Medical
ISBN : 9781464805288

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Disease Control Priorities, Third Edition (Volume 9) by Dean T. Jamison,Hellen Gelband,Susan Horton,Prabhat Jha,Charles N. Mock,Rachel Nugent Pdf

As the culminating volume in the DCP3 series, volume 9 will provide an overview of DCP3 findings and methods, a summary of messages and substantive lessons to be taken from DCP3, and a further discussion of cross-cutting and synthesizing topics across the first eight volumes. The introductory chapters (1-3) in this volume take as their starting point the elements of the Essential Packages presented in the overview chapters of each volume. First, the chapter on intersectoral policy priorities for health includes fiscal and intersectoral policies and assembles a subset of the population policies and applies strict criteria for a low-income setting in order to propose a "highest-priority" essential package. Second, the chapter on packages of care and delivery platforms for universal health coverage (UHC) includes health sector interventions, primarily clinical and public health services, and uses the same approach to propose a highest priority package of interventions and policies that meet similar criteria, provides cost estimates, and describes a pathway to UHC.

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : INTERNATIONAL MONETARY FUND
Page : 0 pages
File Size : 55,7 Mb
Release : 2015-04-15
Category : Business & Economics
ISBN : 1498372937

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Global Financial Stability Report, April 2015 by International Monetary Fund. Monetary and Capital Markets Department Pdf

The current report finds that, despite an improvement in economic prospects in some key advanced economies, new challenges to global financial stability have arisen. The global financial system is being buffeted by a series of changes, including lower oil prices and, in some cases, diverging growth patterns and monetary policies. Expectations for rising U.S. policy rates sparked a significant appreciation of the U.S. dollar, while long term bond yields in many advanced economies have decreased—and have turned negative for almost a third of euro area sovereign bonds—on disinflation concerns and the prospect of continued monetary accommodation. Emerging markets are caught in these global cross currents, with some oil exporters and other facing new stability challenges, while others have gained more policy space as a result of lower fuel prices and reduced inflationary pressures. The report also examines changes in international banking since the global financial crisis and finds that these changes are likely to promote more stable bank lending in host countries. Finally, the report finds that the asset management industry needs to strengthen its oversight framework to address financial stability risks from incentive problems between end-investors and portfolio managers and the risk of runs due to liquidity mismatches.

Author : Christopher B. Field,Vicente Barros,Thomas F. Stocker,Qin Dahe
Publisher : Cambridge University Press
Page : 593 pages
File Size : 55,5 Mb
Release : 2012-05-28
Category : Science
ISBN : 9781107380103

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Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation by Christopher B. Field,Vicente Barros,Thomas F. Stocker,Qin Dahe Pdf

This Intergovernmental Panel on Climate Change Special Report (IPCC-SREX) explores the challenge of understanding and managing the risks of climate extremes to advance climate change adaptation. Extreme weather and climate events, interacting with exposed and vulnerable human and natural systems, can lead to disasters. Changes in the frequency and severity of the physical events affect disaster risk, but so do the spatially diverse and temporally dynamic patterns of exposure and vulnerability. Some types of extreme weather and climate events have increased in frequency or magnitude, but populations and assets at risk have also increased, with consequences for disaster risk. Opportunities for managing risks of weather- and climate-related disasters exist or can be developed at any scale, local to international. Prepared following strict IPCC procedures, SREX is an invaluable assessment for anyone interested in climate extremes, environmental disasters and adaptation to climate change, including policymakers, the private sector and academic researchers.

Author : Groupe d'experts intergouvernemental sur l'évolution du climat
Publisher : Unknown
Page : 151 pages
File Size : 49,7 Mb
Release : 2015
Category : Electronic
ISBN : 9291691437

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Climate Change 2014 by Groupe d'experts intergouvernemental sur l'évolution du climat Pdf

Author : Laurent Ferrara,Ignacio Hernando,Daniela Marconi
Publisher : Springer
Page : 298 pages
File Size : 44,8 Mb
Release : 2018-06-13
Category : Business & Economics
ISBN : 9783319790756

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International Macroeconomics in the Wake of the Global Financial Crisis by Laurent Ferrara,Ignacio Hernando,Daniela Marconi Pdf

This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.

Author : International Monetary Fund. Monetary and Financial Systems Dept.
Publisher : International Monetary Fund
Page : 139 pages
File Size : 43,5 Mb
Release : 2017-10-11
Category : Business & Economics
ISBN : 9781484308394

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Global Financial Stability Report, October 2017 by International Monetary Fund. Monetary and Financial Systems Dept. Pdf

The October 2017 Global Financial Stability Report finds that the global financial system continues to strengthen in response to extraordinary policy support, regulatory enhancements, and the cyclical upturn in growth. It also includes a chapter that examines the short- and medium-term implications for economic growth and financial stability of the past decades’ rise in household debt. It documents large differences in household debt-to-GDP ratios across countries but a common increasing trajectory that was moderated but not reversed by the global financial crisis. Another chapter develops a new macroeconomic measure of financial stability by linking financial conditions to the probability distribution of future GDP growth and applies it to a set of 20 major advanced and emerging market economies. The chapter shows that changes in financial conditions shift the whole distribution of future GDP growth.

Author : OECD
Publisher : OECD Publishing
Page : 360 pages
File Size : 55,8 Mb
Release : 2021-11-01
Category : Electronic
ISBN : 9789264439665

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Managing Climate Risks, Facing up to Losses and Damages by OECD Pdf

This report addresses the urgent issue of climate-related losses and damages. Climate change is driving fundamental changes to the planet with adverse impacts on human livelihoods and well-being, putting development gains at risk.

Author : Paul Collier,David Dollar
Publisher : World Bank Publications
Page : 200 pages
File Size : 41,5 Mb
Release : 2002
Category : Business & Economics
ISBN : 082135048X

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Globalization, Growth, and Poverty by Paul Collier,David Dollar Pdf

Globalization - the growing integration of economies and societies around the world, is a complex process. The focus of this research is the impact of economic integration on developing countries and especially the poor people living in these countries. Whether economic integration supports poverty reduction and how it can do so more effectively are key questions asked. The research yields 3 main findings with bearings on current policy debates about globalization. Firstly, poor countries with some 3 billion people have broken into the global market for manufactures and services, and this successful integration has generally supported poverty reduction. Secondly, inclusion both across countries and within them is important as a number of countries (pop. 2 billion) are failing as states, trading less and less, and becoming marginal to the world economy. Thirdly, standardization or homogenization is a concern - will economic integration lead to cultural or institutional homogenization?

Author : Nathaniel Rich
Publisher : Picador
Page : 256 pages
File Size : 44,7 Mb
Release : 2020-03-05
Category : Climatic changes
ISBN : 1529015847

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Losing Earth by Nathaniel Rich Pdf

By 1979, we knew all that we know now about the science of climate change - what was happening, why it was happening, and how to stop it. Over the next ten years, we had the very real opportunity to stop it. Obviously, we failed.Nathaniel Rich's groundbreaking account of that failure - and how tantalizingly close we came to signing binding treaties that would have saved us all before the fossil fuels industry and politicians committed to anti-scientific denialism - is already a journalistic blockbuster, a full issue of the New York Times Magazine that has earned favorable comparisons to Rachel Carson's Silent Spring and John Hersey's Hiroshima. Rich has become an instant, in-demand expert and speaker. A major movie deal is already in place. It is the story, perhaps, that can shift the conversation.In the book Losing Earth, Rich is able to provide more of the context for what did - and didn't - happen in the 1980s and, more important, is able to carry the story fully into the present day and wrestle with what those past failures mean for us in 2019. It is not just an agonizing revelation of historical missed opportunities, but a clear-eyed and eloquent assessment of how we got to now, and what we can and must do before it's truly too late.