English

Benoit Mojon | Focus on the impact of climate change on macro - economy and policy - making, and pro

May 24, 2024Tsinghua PBC School of Finance Global Green Finance ForumThe forum was held at Tsinghua University's PBC School of Finance. It was jointly hosted by the NGFS Research Experts Network (ENR) and Tsinghua University's PBC School of Finance, and organized by the Tsinghua University PBC School of Finance Green Finance Research Center (CGFR). The forum combined online and offline participation, with live streaming in both Chinese and English.Benoit Mojon, Co-Chair of NGFS ENRHe attended the meeting and delivered the opening address.

In his address, Benoit Mojon emphasized that central banks are highly concerned about financial stability. Against the backdrop of climate change and energy transition, the macroeconomic impacts of climate change and how to formulate macroeconomic policies, including monetary policy, to address these challenges are key topics of focus, and conducting relevant research is of great significance. The Bank for International Settlements (BIS) earnestly hopes to promote discussions among central banks, advance relevant research, and reach consensus among nations.

Benoit Mojon

Speech Shorthand

Tsinghua PBC School of Finance Global Green Finance Forum

Benoit Mojon, Co-Chair of NGFS ENR：

My name is Benoît Mojon, and I work at the Bank for International Settlements (BIS), an international organization with 63 member central banks or monetary authorities, including the People's Bank of China. Fundamentally, the purpose of the BIS is to promote international exchange and dialogue, primarily among global central banks; 63 central banks, including those from China, the United States, Europe, and other countries, to facilitate international exchange and dialogue.

BIS essentially provides a platform; the essence of our work is to promote international dialogue and cooperation, focusing on key issues that central banks are concerned with. Central banks design monetary policy to maintain price stability. This is crucial for both the private and public sectors. It allows for better pricing of goods, fostering confidence in our society, in our currency, and especially in its purchasing power.

Central banks pay close attention to price and financial stability. As you may know, the BIS (Bank for International Settlements) is best known for the Basel Accords, which set out rules to facilitate discussions among banks worldwide and to reach consensus among countries. Therefore, international cooperation is at the core of the BIS's work.

As part of international cooperation, the Bank for International Settlements (BIS) is keen to promote economic research, particularly climate-related economic research, including the impact of climate change and energy transition on our macroeconomy and the financial system. Yesterday and today, we held these seminars in Beijing, where experts from different countries discussed how climate change and energy transition will affect financial markets and economic development. This is the purpose of today's meeting and yesterday's meeting with central banks. That's why we are holding this forum today at Tsinghua University's PBC School of Finance.

In our work plan, especially in the afternoon session, we will introduce leading macroeconomic models from the German Central Bank and the IMF (International Monetary Fund). We are willing to share these models; both institutions have made their models and code publicly available online for everyone to use. These models are multi-sectoral DSGE (Dynamic Stochastic General Equilibrium) models. We all believe these are excellent tools to help us understand the impacts of climate change, including its macroeconomic effects and the redistribution of wealth across industries. We also hope to stimulate further reflection on: the macroeconomic consequences of climate change, how macroeconomic policies, including monetary policy, should address our new challenges, and the impacts of these changes on stability, inflation, and other macroeconomic aspects, especially within the broader context of energy transition and climate change.

Why are we undertaking this work this year? Because the pace of climate change is incredibly rapid, as everyone is aware. Furthermore, central banks, including the Federal Reserve in the US and the Bank of Canada, have revised their monetary strategies. We know that other institutions are also conducting related work, further evaluating monetary policy. We will be giving more consideration to monetary policy formulation and evaluation, such as the impact on supply and its effect on inflation. Therefore, this afternoon we will introduce some tools in detail, which are very helpful in allowing us to look more concretely at these crucial and pressing issues.

That's all for now. I'd like to thank Tsinghua University; it's a great pleasure and honor to be here. As we all know, Tsinghua and Peking University are among the most prestigious and top universities in China. I'm especially honored to be here at one of China's two most prestigious universities. Thank you so much! I'd also like to especially thank Vice President Yang and Vice Dean Tian Xuan for hosting me here, and Vice President Yang Bin for personally delivering the opening address. This is of great significance to us, and we are very grateful.

At the same time, I would also like to talk about something from a personal perspective, especially this afternoon when we will introduce macroeconomic modeling and tools that help us better understand what is important in the economy. As George Box mentioned, all models are wrong, but some are still useful.

We are especially pleased that Professor Ke Chengxing could attend today. Thirty years ago, when I was the same age as many of you here, I studied at the London School of Economics. Professor Ke Chengxing was then a professor of macroeconomics and he was my teacher. It is a great pleasure to see my teacher again. This is Beijing, which is very far from London, but I am very happy to see my mentor again. I wish today's conference a complete success, and thank you very much for your hospitality!

WeChat

Sina Weibo

QQ space

Douban

Baidu Post Bar

清华五道口全球绿色金融论坛 greenfinance_forum

Prev Wang Xin | Promote the combination of academic research and policy practice to support policy improv

Next Guests | The guest lineup of the Tsinghua PBCSF Global Green Finance Forum is grandly announced.