Climate-responsive central banking in the least developed countries

Climate change can have physical and economic impacts that affect core areas of central banking, including inflation and financial sector stability. Central banks, including those of LDCs, need to reevaluate their options in the light of the climate crisis and the global low-carbon transition. This policy brief outlines the ways central banks can identify policy tradeoffs and determine how to best incorporate climate-responsive policy and analytical tools in their operational frameworks.

4 p.