Transition risk is the risk arising from the economy’s shift towards net-zero carbon emissions. This column applies a novel methodology to explore the causal macroeconomic effects of transition risk. Large unanticipated increases in transition risk are predominantly related to political events. In the short run, these shocks do not uniformly generate inflationary pressure, challenging the prevalent notion of ‘greenflation’. There may also be economic benefits attached to the transition. While

Tag-uri: Inflatie