
Fed sees climate change shaping economy, policy - aaronbrethorst
https://www.reuters.com/article/us-usa-fed-climate-change/feds-brainard-says-climate-change-poses-profound-risks-idUSKBN1XI218
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tunesmith
> In a third paper, Nicholas Muller, a professor at Carnegie Mellon
> University, outlined how the Fed might factor environmental circumstances
> into monetary policy by, for example, keeping rates lower when pollution
> levels were increasing, to encourage consumption before they got worse, and
> higher when pollution was declining, to depress spending until the
> environment improved.

Doesn't this seem backwards...?

~~~
tenkabuto
> higher [rates] when pollution was declining

The above part sounds weird, but I suspect that it's supposed to illustrate
the following part "to depress spending until the environment improved". In
depressing spending until the environment improved, there would be higher
rates while pollution declines and (I suspect) there would continue to be
higher rates until an optimal level of pollution is reached.

