IMF Working Papers-Monetary Policy Design with Recurrent Climate Shocks

November 24, 2023--Summary:
As climate change intensifies, the frequency and severity of climate-induced disasters are expected to escalate. We develop a New Keynesian Dynamic Stochastic General Equilibrium model to analyze the impact of these events on monetary policy. Our model conceptualizes these disasters as left-tail productivity shocks with a quantified likelihood, leading to a skewed distribution of outcomes.

This creates a significant trade-off for central banks, balancing increased inflation risks against reduced output.

Our results suggest modifying the Taylor rule to give equal weight to responses to both inflation and output growth, indicating a gradual approach to climate exacerbated economic fluctuations.

Mapping the global quantum ecosystem

December 17, 2025-A comprehensive analysis based on innovation, firm, investment, skills, trade and policy data.
Abstract
Quantum technologies are moving from the lab to real-world impact, promising advances in computing, secure communications, and ultra-precise measurement. But who is driving this progress, and how is the global landscape evolving?

Bybit & Block Scholes Report: Market Sentiment Shows Early Signs of Recovery

December 5, 2025-Bybit, the world's second-largest cryptocurrency exchange by trading volume has released its latest Crypto Derivatives Analytics Report in collaboration with Block Scholes, revealing cautiously optimistic signals in cryptocurrency markets following a volatile start to December.