| Περίληψη: | This study will address the current global issue of Climate Change, how monetary
policy is affected by it, whether Monetary Policy can and should play a role in tackling
it. Market imperfections strongly influence the volume of greenhouse gas emissions,
which is a key driver of climate change. While governments should lead climate
policies in the first place, a broad coalition of actors across society, including central
banks, needs to contribute to transition to a carbon-neutral economy in a timely and
orderly fashion. The study will then examine the various studies that have been done
from time to time, analyze the data and the models they use and report the results
they present. Subsequently, it will look at the role that Monetary Policy can play and
what methods of discouragement it can use to reduce climate change. Finally, in the
empirical study we will do, The study will show how Climate Change affects monetary
policy through consumer expectations, changes in energy prices, the production gap
created by a natural disaster, the price trend over the next twelve months and the
number of natural disasters per year. It will show that the above variables affect the
majority of time lags positively and lead to an increase in the rate of change of prices,
which leads to an increase in inflation thus affecting monetary policy.
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