Central Banking, Climate Change and Environmental Sustainability

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The Coun­cil on Eco­nom­ic Poli­cies and the Bank of Eng­land are organ­is­ing a work­shop on this top­ic to be held at the Bank on Novem­ber 14–15 2016. A call for papers has just been put out, with a dead­line of June 30th.


Cli­mate change and oth­er envi­ron­men­tal chal­lenges are mov­ing up pol­i­cy agen­das world­wide. Nonethe­less, the poten­tial impli­ca­tions of envi­ron­men­tal risks and scarci­ties for cen­tral bank­ing as well as the link­ages between finan­cial reg­u­la­tion, mon­e­tary pol­i­cy and envi­ron­men­tal sus­tain­abil­i­ty remain large­ly unex­plored.

Against this back­ground, the Coun­cil on Eco­nom­ic Poli­cies (CEP) and the Bank of Eng­land (BoE) are orga­niz­ing a work­shop on Cen­tral Bank­ing, Cli­mate Change and Envi­ron­men­tal Sus­tain­abil­i­ty, on Novem­ber 14–15, 2016 at the Bank of Eng­land in Lon­don, UK.

The event will bring togeth­er researchers from acad­e­mia, cen­tral banks, and oth­er non-aca­d­e­m­ic research insti­tu­tions. It is part of a larg­er CEP pro­gram on mon­e­tary pol­i­cy and sus­tain­abil­i­ty, and a con­tri­bu­tion towards the core research theme 5 (“Response to Fun­da­men­tal Change”) of the BoE’s One Bank Research Agen­da.


We are par­tic­u­lar­ly inter­est­ed in the fol­low­ing top­ics, but will also con­sid­er papers that deal with relat­ed issues that are not specif­i­cal­ly men­tioned below.

  • What are pos­si­ble effects of envi­ron­men­tal risks (e.g. cli­mate change) and poli­cies to mit­i­gate them (e.g. car­bon tax­es) on cen­tral bank objec­tives (e.g. price and finan­cial sta­bil­i­ty)? Through which trans­mis­sion chan­nels do these effects emerge? What roles might the finan­cial sys­tem play in prop­a­gat­ing or mit­i­gat­ing these risks?
  • How can envi­ron­men­tal risk analy­sis, such as stress test­ing, sce­nario analy­sis and cat­a­stro­phe risks mod­els, be designed to bet­ter inform finan­cial deci­sion mak­ers?
  • How can eco­nom­ic mod­els (e.g. DSGE mod­els, stock-flow con­sis­tent mod­els) account for such effects?
  • What envi­ron­men­tal exter­nal­i­ties might arise from mon­e­tary pol­i­cy and finan­cial reg­u­la­tion? Through which trans­mis­sion chan­nels? How can neg­a­tive envi­ron­men­tal exter­nal­i­ties result­ing from mon­e­tary pol­i­cy and finan­cial reg­u­la­tion be mit­i­gat­ed?

Sub­mis­sion and Dates

Papers should be sub­mit­ted by June 30, 2016 to monetary@cepweb.org. We have a pref­er­ence for com­plet­ed papers, but will also con­sid­er pre­lim­i­nary ver­sions.

  • June 30, 2016: sub­mis­sion dead­line
  • July 31, 2016: par­tic­i­pant selec­tion
  • Octo­ber 15, 2016: dead­line for final papers
  • Novem­ber 14–15, 2016: work­shop

Pro­gram Com­mit­tee

  • Ste­fano Bat­tis­ton, Uni­ver­si­ty of Zurich
  • Prakash Loun­gani, Inter­na­tion­al Mon­e­tary Fund
  • Pierre Mon­nin, Coun­cil on Eco­nom­ic Poli­cies
  • Con­ny Olovs­son, Sveriges Riks­bank
  • Nico­las Pon­dard, Bank of Eng­land
  • Misa Tana­ka, Bank of Eng­land


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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.