Central: Banking: Theory And Practice In Sustain...

Beyond monetary policy, central banks act as regulators. Practice now includes . Unlike traditional stress tests that look at a 12-month horizon, climate tests look 30 years into the future. They force commercial banks to model how their portfolios would survive various "orderly" and "disorderly" transition scenarios. 4. The Debate: Independence and "Mission Creep"

Historically, central banking theory was built on the principle of . The idea was that central banks should not pick "winners and losers" when conducting open-market operations or setting collateral frameworks. Central Banking: Theory and Practice in Sustain...

As we move forward, the "practice" of central banking will likely see a more integrated approach where environmental data is treated with the same rigor as GDP or inflation figures. Beyond monetary policy, central banks act as regulators