In this episode of The Sound of Economics, host Rebecca Christie sits down with Bruegel’s Heather Grabbe and Guntram Wolff to talk about the real costs of a changing climate. With all the fuss over how to manage the climate transition, economists may be overlooking the rising expenses of the changes happening now. From the rising cost of insurance to future housing shocks, evolving weather trends and water scarcity mean the world could be facing big hits to productivity and gross domestic product. What will be the scale of the change? What should economists be studying? How should policymakers act? They discuss what happens when these shocks collide and intensify, rather than occurring one at a time, and how the world can respond.