Why the economic impacts of climate change call for adaptive inflation targeting
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Supply shocks induced by climate change could pose major challenges for inflation-targeting central banks, who will need innovative approaches to guarantee price stability without undermining long-term economic resilience. In this commentary for CETEx (the Centre for Economic Transformation Expertise), David Barmes and Luiz Awazu Pereira da Silva make the case for adaptive inflation targeting for a hotter, more volatile world.