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.