In recent years, some central banks have added a new responsibility to their list of tasks: ameliorate the effects of climate change. This could mean monitoring the short- and long-term exposure of financial institutions to climate change, or it could mean actively directing regulated financial institutions to invest in certain industries. In either case, central banks will have to determine how best to anticipate the likely effects of climate change many years into the future.

Imagine you are an economist who wants to understand the effects of climate change on an economy. First, you would have to begin by confronting the many climate models that exist. These are complex models based on long periods of time that offer different outcomes. But you have to choose at least one to incorporate into your economic model.

University of Chicago Professor Emeritus Arnold Harberger discusses the legacy of UChicago Economics with David...

The Macro Financial Modeling (MFM) Project held its third MFM Summer Session for Young Scholars...

The Macro Financial Modeling (MFM) Project held its third MFM Summer Session for Young Scholars...

The Macro Financial Modeling (MFM) Project held its third MFM Summer Session for Young Scholars...

The Macro Financial Modeling (MFM) Project held its third MFM Summer Session for Young Scholars at the Cape Cod, MA on June 17-21, 2018. This three-day intensive program is designed for early-career professionals and doctoral students in economics and related fields who are interested in developing enhanced macroeconomic models with linkages to the financial sector. The program provides an opportunity to learn about, discuss, and advance work on macro models with financial sector linkages and related topics.