Implications for Monetary Policy on the Effects of Climate Change on Inflation: Evidence from G-20 Countries

Key Points

• Inflation trends are significantly affected by climate change across multiple economic contexts.
• Evidence from G-20 countries indicates a direct correlation between climate disruptions and rising inflation rates.
• This analysis incorporates economic data from over 20 nations to understand the broader implications of climate risks.
• Adjustments in monetary policy could be crucial in stabilizing inflation affected by climate variations.