May 13, 2022
10:00 AM-3:05 PM EDT
This event was open to the public and media virtually. All remarks were on the record and the event was recorded. For Media inquiries, please contact Mariah Measey at firstname.lastname@example.org.
Rajashri Chakrabarti, Federal Reserve Bank of New York
|10:05am-11:05am||Session I: Implications of Climate Change for Monetary Policy
James H. Stock, Harvard University Presentation
Iván Werning, MIT Presentation
What are the likely consequences of climate change and climate policy for the macroeconomy in terms of long-term productivity as well as the volatility of output growth and inflation? Will the unpredictability related to climate change and/or climate policy usher in a new “cost push shock” era, different from the pre-COVID economy where shocks rarely involved tradeoffs for the monetary authority? Does monetary policy, both traditional interest rate policy and QE, have direct or indirect effects on climate change, possibly via its impact on risk premia? What macroeconomic risks associated with climate change should a central bank especially monitor?
|11:10am-12:10pm||Session II: Labor and Capital Reallocation and Climate Change
Daron Acemoglu, MIT Presentation
Tatyana Deryugina, University of Illinois Urbana-Champaign Presentation
Climate change and related policies will bring about reallocation of both labor and capital across sectors and geographical regions. To what extent will this reallocation affect aggregate outcomes, such as the natural rate of unemployment u*? Will it affect inequality across and within demographic groups? What are the macroeconomic implications of any such changes?
|1:00pm-2:00pm||Session III: Climate Change, Trade, and Global Production
Solomon Hsiang, University of California, Berkeley, and Global Policy Laboratory Presentation
Esteban Rossi-Hansberg, University of Chicago Presentation
How will climate change shift economic activity within, across, and between countries? What is the potential impact of climate policy on the global supply chain? What are the implications for monetary policy makers?
|2:05pm-3:05pm||Session IV: Climate Uncertainty, Financial Markets, and the Natural Rate of Interest
Lars Peter Hansen, University of Chicago Presentation
Monika Piazzesi, Stanford University Presentation
How will climate change and policy-related uncertainty impact financial markets and in turn affect the macroeconomy via risk premia, the demand for safe assets, and the natural rate of interest? How will they impact households’ and firms’ savings and investment decisions? What could be the effects on the housing market? What could be the distributional consequences of these developments?
Rajashri Chakrabarti, Marco Del Negro, Julian di Giovanni and Laura Pilossoph
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