Global | Interest rates, disasters and climate change

Summary

The global economic scenario is defined by low growth, inflation & interest rates below what central banks would like, and a global pandemic. All of this has a lot to do with action against climate change.

Key points

• Key points:
• Catastrophic events, such as pandemics, have very persistent negative economic impacts; and negative climate events are increasingly frequent as a result of global warming.
• Low interest rates raise the present value of future monetary flows, including that of combating climate change.
• The corollary is clear: act against climate change.

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