Stress Testing the Global Economy to Climate Change-Related Shocks in Large and Interconnected Economies /

We stress test the global economy to extreme climate change-related shocks on large and interconnected economies. Our analysis (i) identifies large and interconnected economies vulnerable to climate change-related shocks; (ii) estimates these economies' external financing needs-at-risk due to t...

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Autor principal: Tovar Mora, Camilo
Altres autors: Wu, Yiqun, Zheng, Tianxiao
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2022.
Col·lecció:IMF Working Papers; Working Paper ; No. 2022/189
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Accés en línia:Full text available on IMF
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Sumari:We stress test the global economy to extreme climate change-related shocks on large and interconnected economies. Our analysis (i) identifies large and interconnected economies vulnerable to climate change-related shocks; (ii) estimates these economies' external financing needs-at-risk due to these shocks, and (iii) quantifies the spillovers to the global economy using a global network model. We show that large and interconnected economies vulnerable to climate change could trigger a drain of USD 1.8 trillion in international reserves (2 percent of 2019's global GDP). Domestic and multilateral macroeconomic policies can help reduce these global lossess to about USD 0.8 trillion. The scenario highlights the importance of considering global spillovers when assessing the impact of climate change-related shocks.
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Descripció física:1 online resource (33 pages)
Format:Mode of access: Internet
ISBN:9798400219641
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students