High temperature shocks create monetary policy trade-offs. This column uses a new monthly data set to study how 14 European central banks have responded to abnormally high temperatures in a centennial perspective (1920-2019). High temperature shocks are negative supply shocks to which central banks have reacted by lowering their interest rates. The macroeconomic impact of individual high temperature shocks on inflation has diminished over time, but the size and the frequency of such shocks has

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