Flashcards : Integrating Climate and Monetary Policy — 24 cartes

Mechanisms through which policy affects inflation.

Shapes future inflation expectations influencing current behavior.

Affects borrowing conditions for households and firms.

Impacts household wealth and spending via asset prices.

Alters import/export prices, influencing inflation.

Set criteria for assets used as security in liquidity operations.

Reduce collateral value to mitigate credit risk.

Assets meeting central bank standards for safety and liquidity.

Negative rates, QE, forward guidance, new liquidity facilities.

Portfolio rebalancing, bank lending, confidence effects.

Asset purchases raise prices, lower yields, stimulate borrowing.

QE increases reserves, encouraging more bank loans.

Boosts market sentiment, increases spending and investment.

Transition and physical risks affecting asset values.

Risks from shifting to a low-carbon economy.

Damage from storms, floods, wildfires.

Assessing how climate factors impact financial assets.

Estimate future climate impacts on markets and assets.

Measuring and managing environmental impacts of assets.

Classification of sectors based on environmental impact.

Carbon intensity, decarbonisation rates.

Tilting asset purchases, adjusting collateral, using green bonds.

Measures portfolio greenness by emissions per value.

Purchasing green bonds to promote sustainable investments.