Climate change is no longer just an environmental concern, it is becoming a core macroeconomic challenge. As extreme weather events disrupt supply chains, food systems and energy markets, inflation is increasingly being shaped by climate shocks rather than purely demand-side factors.
In this video from the Indian Network for Economic Research (INER) at ISPP, we explain why traditional monetary policy frameworks are being tested in a warming world. We unpack the latest research on how central banks, particularly the Reserve Bank of India, can support renewable infrastructure and climate transition efforts while still maintaining control over the repo rate, financial stability and price expectations.
