Nature degradation and price stability: implications and research questions for monetary policy

Maria Waaifoort and Elena Almeida

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Nature degradation can negatively affect output, investment, employment, consumption and trade, with potential implications for price stability. This policy brief examines how nature degradation affects key macroeconomic indicators, with a focus on deforestation. It argues that central banks should consider the impacts of nature degradation alongside climate-related factors in monetary policy.

JEL-codes: F3 G3 J01 R14 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2025-02-18
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:129329

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