Emanuel Moench, Deutsche Bundesbank, on Central Banks and the Climate Crisis

When central bank policies are driven by their primary mandates, is there a case that these mandates should expand to incorporate the systemic risk that is climate change? And how will increasingly extreme climate events force policymakers’ actions or limit the monetary policy space available to central bank institutions?

 Emanuel Moench, Head of Research at the Deutsche Bundesbank, joins Jason Mitchell to discuss the intersection of climate change and monetary policy; what central banks are doing to integrate climate risk in their macroeconomic models; and why it’s vital we continue to examine how climate change could impact the financial system.

Read the full transcript of the episode here.

Biography

Commissioner Emanuel Moench is the Head of Research at Deutsche Bundesbank, Professor of Economics at Goethe University Frankfurt and co-chair of the recent ECB Strategy Review Occasional Paper: Climate change and monetary policy in the euro area. Prior to joining the Bundesbank, Emanuel was a Research Officer at the Federal Reserve Bank of New York. His research focuses on the intersection of macroeconomics and finance and has been published in the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Journal of Monetary Economics among others. Emanuel received the Journal of Finance’s Amundi Smith Breeden First Prize in 2015 and the European Economic Association's Young Economist Award in 2008.