Josh Galper on Dealing with Climate Risk and Its Potential Impact on US Financial Markets
Macro Musings with David Beckworth
00:00
Is Climate Risk a Tax on the Balance Sheet?
I could easily see climate risk becoming another element of measurement. That's an easy thing to put on paper that has tremendous impact across capital markets. Because if you think about, for example, liquidity coverage ratio as a tax on a bank's balance sheet, then climate risk could become another tax. I don't know honestly how it gets avoided. Every passing year there are more climate events and administration's governments around the world have to ask the question. And I think we're going to see the implementation first of trial run, but then of some sort of global standard.
Transcript
Play full episode
