DRF Training and Knowledge
Compound Risks: Combining Covid and Climate Shocks in Macroeconomic Models for Stronger Financial Resilience
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OVERVIEW
The combined impact of the COVID-19 pandemic and climate shocks creates unprecedented social, economic and financial challenges for developed and emerging countries. Macroeconomic and macro-financial models have started to include climate change in their (country) forecasts and in their simulations of policy reforms. The COVID-19 crisis cannot be ignored but its economic and financial impact as well as its interactions with climate shocks are still to be developed in such macro modeling.
