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Ferdinando Giugliano

Will Christine Lagarde Do ‘Whatever It Takes’ to Save Earth?

The ECB and the Bank of England need to tread carefully on global warming. This is a problem for democratically elected politicians to solve.

A political problem. 

A political problem. 

Photographer: China Photos/Getty Images AsiaPac

For the past decade, politicians in the rich world have relied too much on central banks to solve their problems of weak growth and high unemployment. They may be about to do the same with climate change.

Central bankers have started to make their voices heard on the threat of carbon emissions. From worries about how financial institutions might withstand climate shocks to analysis of how global warming will affect national economies, it certainly makes sense to look at what role there is for regulators and monetary policymakers.