Pub Date : 2025-12-02DOI: 10.1016/j.jimonfin.2025.103492
Georgii Zvonka
We introduce tokenization as a way to upgrade Bitcoin and analyze how it affects Bitcoin’s value. The tokenization possibility explains Bitcoin’s current high valuation despite expectations that declining mining rewards will reduce security. We develop a new monetarist model with two monetary standards, network effects, and transaction costs from congestion and declining security. Without tokenization options, the model predicts a zero Bitcoin price given declining security. With tokenization, the transition may be delayed by trade-offs between network effects and congestion on Bitcoin’s blockchain versus those on a new monetary standard. As Bitcoin’s security declines, this balance shifts toward the new standard, generating equilibria where Bitcoin’s price rises with token adoption. Bitcoin-backed tokens already exist (e.g., WBTC), demonstrating practical feasibility, though empirical evidence reveals that trust in token issuers remains critical. To address this trust issue, we propose a simple soft-fork mechanism.
{"title":"Tokenization: a potential pathway for Bitcoin’s future","authors":"Georgii Zvonka","doi":"10.1016/j.jimonfin.2025.103492","DOIUrl":"10.1016/j.jimonfin.2025.103492","url":null,"abstract":"<div><div>We introduce tokenization as a way to upgrade Bitcoin and analyze how it affects Bitcoin’s value. The tokenization possibility explains Bitcoin’s current high valuation despite expectations that declining mining rewards will reduce security. We develop a new monetarist model with two monetary standards, network effects, and transaction costs from congestion and declining security. Without tokenization options, the model predicts a zero Bitcoin price given declining security. With tokenization, the transition may be delayed by trade-offs between network effects and congestion on Bitcoin’s blockchain versus those on a new monetary standard. As Bitcoin’s security declines, this balance shifts toward the new standard, generating equilibria where Bitcoin’s price rises with token adoption. Bitcoin-backed tokens already exist (e.g., WBTC), demonstrating practical feasibility, though empirical evidence reveals that trust in token issuers remains critical. To address this trust issue, we propose a simple soft-fork mechanism.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103492"},"PeriodicalIF":3.3,"publicationDate":"2025-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145797138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01DOI: 10.1016/j.jimonfin.2025.103496
Bruno Albuquerque , Eugenio Cerutti , Yosuke Kido , Richard Varghese
This paper shows that not all housing price cycles are alike. The speed and persistence of house price increases during housing expansions are key determinants of both the severity of the subsequent downturn and the net macroeconomic impact over the cycle. Analyzing 180 housing expansions across 68 countries, we classify 49 % as housing booms, characterized by rapid and persistent real house price increases. We find that economic downturns are significantly deeper and longer when housing contractions are preceded by a housing boom. The housing contraction is more severe the more intense the preceding housing boom, and when accompanied by a credit boom. Overall, while housing booms spur stronger economic growth during the expansion phase, their sharp reversals lead to severe housing contractions, resulting in significant net negative effects on the real economy.
{"title":"Not all housing cycles are created equal: Macroeconomic consequences of housing booms","authors":"Bruno Albuquerque , Eugenio Cerutti , Yosuke Kido , Richard Varghese","doi":"10.1016/j.jimonfin.2025.103496","DOIUrl":"10.1016/j.jimonfin.2025.103496","url":null,"abstract":"<div><div>This paper shows that not all housing price cycles are alike. The speed and persistence of house price increases during housing expansions are key determinants of both the severity of the subsequent downturn and the net macroeconomic impact over the cycle. Analyzing 180 housing expansions across 68 countries, we classify 49 % as housing booms, characterized by rapid and persistent real house price increases. We find that economic downturns are significantly deeper and longer when housing contractions are preceded by a housing boom. The housing contraction is more severe the more intense the preceding housing boom, and when accompanied by a credit boom. Overall, while housing booms spur stronger economic growth during the expansion phase, their sharp reversals lead to severe housing contractions, resulting in significant net negative effects on the real economy.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103496"},"PeriodicalIF":3.3,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01DOI: 10.1016/j.jimonfin.2025.103497
Yuanyuan Li , Xun Wang , Jingwen Yu
The transmission mechanisms of global liquidity shocks have garnered significant attention, particularly in the context of emerging market economies. This study contributes to this literature by empirically examining a novel household income channel through which foreign-owned enterprises (FOEs) propagate US monetary policy shocks to host countries. Leveraging a large Chinese individual-level survey dataset, we uncover a hitherto understudied mechanism linking external monetary tightening to income dynamics in the private sector. Tightening US monetary policy shocks exhibit a significantly larger contractionary effect on individuals employed in FOEs relative to those in non-FOEs. These spillover effects are more pronounced for individuals working in industries with greater external financial dependence and in provinces with less developed financial sector. Moreover, the income dampening effect of US monetary policy shocks through FOEs affects household consumption, and households with greater financing constraints are more prominently affected. Our paper provides new insights into how FOEs act as transmission intermediaries for external liquidity shocks, affecting the host country’s economy.
{"title":"FOEs and the transmission of US monetary policy shocks: Evidence from China","authors":"Yuanyuan Li , Xun Wang , Jingwen Yu","doi":"10.1016/j.jimonfin.2025.103497","DOIUrl":"10.1016/j.jimonfin.2025.103497","url":null,"abstract":"<div><div>The transmission mechanisms of global liquidity shocks have garnered significant attention, particularly in the context of emerging market economies. This study contributes to this literature by empirically examining a novel household income channel through which foreign-owned enterprises (FOEs) propagate US monetary policy shocks to host countries. Leveraging a large Chinese individual-level survey dataset, we uncover a hitherto understudied mechanism linking external monetary tightening to income dynamics in the private sector. Tightening US monetary policy shocks exhibit a significantly larger contractionary effect on individuals employed in FOEs relative to those in non-FOEs. These spillover effects are more pronounced for individuals working in industries with greater external financial dependence and in provinces with less developed financial sector. Moreover, the income dampening effect of US monetary policy shocks through FOEs affects household consumption, and households with greater financing constraints are more prominently affected. Our paper provides new insights into how FOEs act as transmission intermediaries for external liquidity shocks, affecting the host country’s economy.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103497"},"PeriodicalIF":3.3,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145748021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-27DOI: 10.1016/j.jimonfin.2025.103488
Helmut Herwartz , Christian Ochsner , Hannes Rohloff
Pointing to the prominent role of global shocks in determining financial outcomes, global credit aggregates and indicators of country-specific credit market stress co-move to a significant extent. In this work, we examine the transmission of global credit supply shocks associated with governments, businesses and households to the country level. In a data-rich environment, we show that a substantial amount of variation in credit aggregates and interest rates is explained by common global credit supply components. In addition, we find that real risk and term premia and their associated uncertainties (i.e., realized volatilities) transmit global shocks to country-level debt and equity markets. However, effect magnitudes and signs are heterogeneous across sectors, and highlight the relevance of sector-specific credit market monitoring. For instance, whereas global government credit supply eases financial pressures, acting as safe-haven lending, global household credit supply shocks significantly increase risk and liquidity premia across the globe. An investigation of monetary policy effects of major central banks (Fed, ECB, BoE, BoJ) on global credit supply reveals important transmission heterogeneities of conventional versus unconventional policies.
{"title":"How do credit supply conditions transmit across the globe?","authors":"Helmut Herwartz , Christian Ochsner , Hannes Rohloff","doi":"10.1016/j.jimonfin.2025.103488","DOIUrl":"10.1016/j.jimonfin.2025.103488","url":null,"abstract":"<div><div>Pointing to the prominent role of global shocks in determining financial outcomes, global credit aggregates and indicators of country-specific credit market stress co-move to a significant extent. In this work, we examine the transmission of global credit supply shocks associated with governments, businesses and households to the country level. In a data-rich environment, we show that a substantial amount of variation in credit aggregates and interest rates is explained by common global credit supply components. In addition, we find that real risk and term premia and their associated uncertainties (i.e., realized volatilities) transmit global shocks to country-level debt and equity markets. However, effect magnitudes and signs are heterogeneous across sectors, and highlight the relevance of sector-specific credit market monitoring. For instance, whereas global government credit supply eases financial pressures, acting as safe-haven lending, global household credit supply shocks significantly increase risk and liquidity premia across the globe. An investigation of monetary policy effects of major central banks (Fed, ECB, BoE, BoJ) on global credit supply reveals important transmission heterogeneities of conventional versus unconventional policies.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103488"},"PeriodicalIF":3.3,"publicationDate":"2025-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694230","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-27DOI: 10.1016/j.jimonfin.2025.103487
Silvio Contessi , Qingyuan Du , Deting Gao , Lei Pan , Shenxiang Xie
This paper examines how exchange rate regime flexibility impacts the allocation of labor across firms. Specifically, we investigate how differences in labor-intensity or capital-intensity in production affect employment decisions under various degrees of exchange rate regime flexibility. In a simple theoretical model, we show that firms utilizing more labor-intensive production technologies are more likely to expand their employment when the exchange rate they face becomes less flexible. In contrast, firms employing more capital-intensive technology tend to hire more workers when the exchange rate is more flexible. We test our theory using granular firm-level data from China and provide robust evidence supporting the theoretical predictions.
{"title":"Exchange rate regime flexibility and firms’ employment","authors":"Silvio Contessi , Qingyuan Du , Deting Gao , Lei Pan , Shenxiang Xie","doi":"10.1016/j.jimonfin.2025.103487","DOIUrl":"10.1016/j.jimonfin.2025.103487","url":null,"abstract":"<div><div>This paper examines how exchange rate regime flexibility impacts the allocation of labor across firms. Specifically, we investigate how differences in labor-intensity or capital-intensity in production affect employment decisions under various degrees of exchange rate regime flexibility. In a simple theoretical model, we show that firms utilizing more labor-intensive production technologies are more likely to expand their employment when the exchange rate they face becomes less flexible. In contrast, firms employing more capital-intensive technology tend to hire more workers when the exchange rate is more flexible. We test our theory using granular firm-level data from China and provide robust evidence supporting the theoretical predictions.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103487"},"PeriodicalIF":3.3,"publicationDate":"2025-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694232","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-27DOI: 10.1016/j.jimonfin.2025.103483
Raphaelle G. Coulombe , Jaroslav Horvath
Compared to small open advanced economies (AEs), emerging market economies (EMEs) exhibit simultaneously higher volatility and procyclicality of government spending, two features likely to amplify business cycle fluctuations. To rationalize these stylized facts, we augment the canonical small open economy model with heterogeneous parties and repeated elections with endogenous voting. We relate the distinct dynamics of government spending in EMEs to a combination of larger interest rate fluctuations and a higher degree of political polarization. While, on their own, interest rate shocks and political polarization account, respectively, for about a quarter and a half of government spending variance in EMEs, we show that higher political polarization amplifies the macroeconomic effects of interest rate shocks by increasing political turnover. We provide corroborating evidence for this mechanism by documenting that EMEs exhibit, on average, larger political turnover than AEs.
{"title":"Government spending dynamics in small open economies","authors":"Raphaelle G. Coulombe , Jaroslav Horvath","doi":"10.1016/j.jimonfin.2025.103483","DOIUrl":"10.1016/j.jimonfin.2025.103483","url":null,"abstract":"<div><div>Compared to small open advanced economies (AEs), emerging market economies (EMEs) exhibit simultaneously higher volatility and procyclicality of government spending, two features likely to amplify business cycle fluctuations. To rationalize these stylized facts, we augment the canonical small open economy model with heterogeneous parties and repeated elections with endogenous voting. We relate the distinct dynamics of government spending in EMEs to a combination of larger interest rate fluctuations and a higher degree of political polarization. While, on their own, interest rate shocks and political polarization account, respectively, for about a quarter and a half of government spending variance in EMEs, we show that higher political polarization amplifies the macroeconomic effects of interest rate shocks by increasing political turnover. We provide corroborating evidence for this mechanism by documenting that EMEs exhibit, on average, larger political turnover than AEs.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103483"},"PeriodicalIF":3.3,"publicationDate":"2025-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-26DOI: 10.1016/j.jimonfin.2025.103484
Thuy Hang Duong , Weifeng Larry Liu
From the 1990s until the COVID-19 pandemic, the world experienced a sustained period of low and stable inflation, alongside a marked increase in trade integration among countries. This paper examines the impacts of international trade on inflation through domestic production networks. We first construct a theoretical model of an open economy to illustrate how domestic input–output networks propagate the price impacts of trade shocks. Using Australia as a case study, we find that the network impacts of trade shocks on inflation are as significant as their direct impacts, and primarily propagate upstream, based on data from 47 manufacturing industries from 2000 to 2023. Australia’s low inflation before COVID benefited from increased exposure to China’s low-cost exports, while inflation surged during episodes of global supply chain disruptions, among other factors. This paper underscores the importance of economic globalization and production structures for inflation, and offers several implications for monetary and trade policies.
{"title":"The trade-inflation nexus: The role of production networks","authors":"Thuy Hang Duong , Weifeng Larry Liu","doi":"10.1016/j.jimonfin.2025.103484","DOIUrl":"10.1016/j.jimonfin.2025.103484","url":null,"abstract":"<div><div>From the 1990s until the COVID-19 pandemic, the world experienced a sustained period of low and stable inflation, alongside a marked increase in trade integration among countries. This paper examines the impacts of international trade on inflation through domestic production networks. We first construct a theoretical model of an open economy to illustrate how domestic input–output networks propagate the price impacts of trade shocks. Using Australia as a case study, we find that the network impacts of trade shocks on inflation are as significant as their direct impacts, and primarily propagate upstream, based on data from 47 manufacturing industries from 2000 to 2023. Australia’s low inflation before COVID benefited from increased exposure to China’s low-cost exports, while inflation surged during episodes of global supply chain disruptions, among other factors. This paper underscores the importance of economic globalization and production structures for inflation, and offers several implications for monetary and trade policies.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103484"},"PeriodicalIF":3.3,"publicationDate":"2025-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-26DOI: 10.1016/j.jimonfin.2025.103494
Zeyun Bei , Liyuan Cui , Yinggang Zhou
Debate remains about what drives global spillovers across financial markets. We address this question by examining the roles of sentiment, liquidity, and other fundamental linkages. Investor sentiment principally drives short-term spillovers, while long-term transmission is primarily influenced by liquidity. Moreover, we highlight the essential influence of capital flows in adjusting market liquidity and triggering global spillovers. Investor sentiment significantly intensifies the impacts of capital flows and unconventional monetary policies, contributing to potential systemic risks during distress. Additionally, we propose a new approach to capturing the structural changes in spillover networks and decomposing them into short- and long-term components.
{"title":"Liquidity, sentiment, and global spillover across financial markets","authors":"Zeyun Bei , Liyuan Cui , Yinggang Zhou","doi":"10.1016/j.jimonfin.2025.103494","DOIUrl":"10.1016/j.jimonfin.2025.103494","url":null,"abstract":"<div><div>Debate remains about what drives global spillovers across financial markets. We address this question by examining the roles of sentiment, liquidity, and other fundamental linkages. Investor sentiment principally drives short-term spillovers, while long-term transmission is primarily influenced by liquidity. Moreover, we highlight the essential influence of capital flows in adjusting market liquidity and triggering global spillovers. Investor sentiment significantly intensifies the impacts of capital flows and unconventional monetary policies, contributing to potential systemic risks during distress. Additionally, we propose a new approach to capturing the structural changes in spillover networks and decomposing them into short- and long-term components.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103494"},"PeriodicalIF":3.3,"publicationDate":"2025-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145797131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-26DOI: 10.1016/j.jimonfin.2025.103490
Changyong Rhee
In conducting monetary policy since the COVID-19 pandemic, the Bank of Korea (BOK) faced trade-offs among policy objectives. During the tightening cycle to curb inflation, the BOK experienced sharp currency depreciation driven by the Federal Reserve’s faster rate hikes, alongside heightened financial instability. As the BOK’s policy stance shifted, financial imbalances intensified, and political turmoil emerged thereafter. The Bank has addressed the trade-offs by employing various combinations of policy tools, which aligns with the core principles of Integrated Policy Framework developed by the IMF and the BIS. Throughout this process, the BOK has gained key lessons, including the importance of policy cooperation, the challenges of communication, and the need for flexible policy responses with long-term perspective.
{"title":"Post-pandemic monetary policy in Korea: toward an Integrated Policy Framework","authors":"Changyong Rhee","doi":"10.1016/j.jimonfin.2025.103490","DOIUrl":"10.1016/j.jimonfin.2025.103490","url":null,"abstract":"<div><div>In conducting monetary policy since the COVID-19 pandemic, the Bank of Korea (BOK) faced trade-offs among policy objectives. During the tightening cycle to curb inflation, the BOK experienced sharp currency depreciation driven by the Federal Reserve’s faster rate hikes, alongside heightened financial instability. As the BOK’s policy stance shifted, financial imbalances intensified, and political turmoil emerged thereafter. The Bank has addressed the trade-offs by employing various combinations of policy tools, which aligns with the core principles of Integrated Policy Framework developed by the IMF and the BIS. Throughout this process, the BOK has gained key lessons, including the importance of policy cooperation, the challenges of communication, and the need for flexible policy responses with long-term perspective.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103490"},"PeriodicalIF":3.3,"publicationDate":"2025-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145938476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-25DOI: 10.1016/j.jimonfin.2025.103491
Sayuri Shirai
Climate change is increasingly recognized as having material impacts on the economy and inflation. However, its integration into core monetary policy frameworks—such as inflation targeting or policy rate setting—remains limited in scope and depth. Instead, some central banks apply green considerations to peripheral tools such as lending facilities, collateral frameworks, or reserve management, whose impact can be enhanced with clear taxonomies or similar classification systems. Looking ahead, the direct integration of climate factors into monetary policy may become feasible when (a) climate risks have measurable and persistent impacts on inflation and output; (b) reliable data are incorporated into macroeconomic forecasting models, and (c) mandates explicitly allow consideration of such risks. By contrast, financial stability frameworks have been advancing more rapidly, with central banks and financial supervisors embedding climate risks into prudential reviews and conducting climate scenario analysis or stress testing. To promote banks’ further climate actions, encouraging climate-related disclosure including financed emissions and adopting common methodologies is essential.
{"title":"Climate risk and central banking in Asia: balancing price stability and financial stability","authors":"Sayuri Shirai","doi":"10.1016/j.jimonfin.2025.103491","DOIUrl":"10.1016/j.jimonfin.2025.103491","url":null,"abstract":"<div><div>Climate change is increasingly recognized as having material impacts on the economy and inflation. However, its integration into core monetary policy frameworks—such as inflation targeting or policy rate setting—remains limited in scope and depth. Instead, some central banks apply green considerations to peripheral tools such as lending facilities, collateral frameworks, or reserve management, whose impact can be enhanced with clear taxonomies or similar classification systems. Looking ahead, the direct integration of climate factors into monetary policy may become feasible when (a) climate risks have measurable and persistent impacts on inflation and output; (b) reliable data are incorporated into macroeconomic forecasting models, and (c) mandates explicitly allow consideration of such risks. By contrast, financial stability frameworks have been advancing more rapidly, with central banks and financial supervisors embedding climate risks into prudential reviews and conducting climate scenario analysis or stress testing. To promote banks’ further climate actions, encouraging climate-related disclosure including financed emissions and adopting common methodologies is essential.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103491"},"PeriodicalIF":3.3,"publicationDate":"2025-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145938364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}