Climate change and nature loss are affecting all aspects of our lives, including our economies. What is the latest research telling us, and what is the cost to the economy? Stefania Secola talks to Executive Board member Frank Elderson and Deputy Director General and researcher Livio Stracca about how rising physical risks will affect our economies.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

This episode was recorded before the tragic floods in Spain.

Published on 1 November.

In this episode:

01:42 Floods, wildfires and droughtsHow do climate change and nature degradation affect our economies? And how high was the economic loss caused by recent extreme weather events ?

05:52 Catastrophe insuranceWhat is it? How many people have it? And what does it mean for our preparedness if disaster were to strike?

06:57 Adapting to a changing economyIt’s clear that our environment is changing. How can we adapt our activities in the face of these changes?

10:05 The Network for Greening the Financial SystemWhat is it, and what does it do? And what does it have to do with central banks and supervisors?

12:32 How do climate change and nature loss affect our economies?How much higher are the expected losses than we previously thought? What’s the latest scientific research telling us?

14:58 Climate messages during the Conference of the Parties (COP) meetingsWhich topics need more attention? And what can we do about it?

19:19 Our guests’ hot tips

Further reading:

The impact of climate change and policies on productivity

https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op340~0173592e52.en.pdf

Policy options to reduce the climate insurance protection gap

https://www.ecb.europa.eu/pub/pdf/other/ecb.policyoptions_EIOPA~c0adae58b7.en.pdf

Managing climate-related risks

https://www.ecb.europa.eu/ecb/climate/managing_mitigating_climatel_risk/html/index.en.html

Living in a world of disappearing nature: physical risk and the implications for financial stability

https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op333~1b97e436be.en.pdf

What to do about Europe’s climate insurance gap

https://www.ecb.europa.eu/press/blog/date/2023/html/ecb.blog.230424~4cdc3a38ba.en.html

Failing to plan is planning to fail – why transition planning is essential for banks

https://www.bankingsupervision.europa.eu/press/blog/2024/html/ssm.blog240123~5471c5f63e.en.html

The climate insurance protection gap

https://www.ecb.europa.eu/ecb/climate/climate/html/index.en.html

The Network for Greening the Financial System

https://www.ngfs.net/en

Measuring economic losses caused by climate change

https://cepr.org/voxeu/columns/measuring-economic-losses-caused-climate-change

“Know thyself” – avoiding policy mistakes in light of the prevailing climate science

https://www.bankingsupervision.europa.eu/press/speeches/date/2024/html/ssm.sp240412~c256dc168c.en.html

Hothouse Earth by Gill McGuire

https://www.google.com/search?safe=active&sca_esv=0d2d5197637c41d9&rlz=1C1GCEA_enDE1060DE1060&q=hothouse+earth+bill+mcguire&udm=3&fbs=AEQNm0Aa4sjWe7Rqy32pFwRj0UkWd8nbOJfsBGGB5IQQO6L3J_86uWOeqwdnV0yaSF-x2jqw-AzvpDFRWNmLZKilfTrfO0pl9dtT9e2t2elzSdzPviJlaPtdkm_zev73LcACj_Zt3WoLu1loKbhUBQ0BvD6_OC9OERnpW26hAPVqw_fTJrjRkQgEJf5SXlzvVj2JhcxyIvER&sa=X&ved=2ahUKEwi2yfiVobGJAxX6_7sIHZckMjAQs6gLegQIExAB&biw=1280&bih=665&dpr=1.5

Climate Change 2023 Synthesis Report

https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_LongerReport.pdf

Headline statements of the Synthesis Report

https://www.ipcc.ch/report/ar6/syr/resources/spm-headline-statements

Climate Change 2023: Synthesis Trailer

https://www.youtube.com/watch?v=T9CeECpxtx8

European Central Bank

https://www.ecb.europa.eu

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html

Today our Governing Council decided on monetary policy, determining what’s needed to return inflation to our 2% goal in a timely manner.

Listen to President Christine Lagarde present today’s decisions. The statement also covers:

• how the economy is performing

• how we expect prices to develop

• the risks to the economic outlook

• the dynamics behind financial and monetary conditions

Published and recorded during our press conference on 17 October 2024

 

 Our monetary policy statement at a glance, 17 October 2024

https://www.ecb.europa.eu/press/press_conference/visual-mps/2024/html/mopo_statement_explained_october.en.html

Christine Lagarde, Luis de Guindos: Monetary policy statement, 17 October 2024

https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2024/html/ecb.is241017~59ad385bab.en.html

Monetary policy decisions, 17 October 2024

https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp241017~aa366eaf20.en.html

Combined monetary policy decisions and statement, 17 October 2024

https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp241017~aa366eaf20.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

You can also listen on all major podcast platforms.

#MonetaryPolicy #EuropeanCentralBank #ChristineLagarde #Finance #FinancialConditions #Inflation #EconomicActivity #EconomicOutlook #PressConference #Banking #CentralBanking #Podcast #Economics #EU #Europe #ECB

What do Taylor Swift concerts have to do with inflation? When could the digital euro be out? And what will our future euro banknotes look like?

In this special #AskECB episode, our guests answer your questions as we mark The ECB Podcast’s fifth birthday.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 5 October.

In this episode:

01:40 – Taylor Swift’s Eras Tour and inflation

Can individual events, like concerts or football tournaments, affect inflation? Guido Wolswijk, who works on monetary policy at the ECB, explains what “funflation” is and how we monitor it.

8:14 – Our 2% target

What happens if one euro area country has an inflation rate higher than 2%? What can the ECB do in such cases?

11:19 – The digital euro

What might the digital euro be like? Erica Ricci, who works in the digital euro team, tells us about the project and its next steps.

14:44 – The digital euro and private payment providers

What could users expect from the digital euro? And would it replace apps like PayPal in the euro area?

17:09 – New euro banknotes

When will the design contest for our future euro banknotes begin? Satu Hietanen from the banknotes team tells us more about the upcoming competition to design the third series of euro banknotes.

Further reading:

Why are stable prices important

https://www.ecb.europa.eu/ecb-and-you/explainers/tell-me-more/html/stableprices.en.html

Two percent target inflation

https://www.ecb.europa.eu/mopo/strategy/pricestab/html/index.en.html

What would a digital euro be

https://www.ecb.europa.eu/euro/digital_euro/features/html/index.en.html

Future banknotes

https://www.ecb.europa.eu/euro/banknotes/future_banknotes/html/index.en.html

Explore our banknotes in 3D

https://www.ecb.europa.eu/euro/banknotes/current/denominations/html/index.en.html#es2-100

European Central Bank

www.ecb.europa.eu

European Banking Supervision https://www.bankingsupervision.europa.eu/home/html/index.en.html

Today our Governing Council decided on monetary policy, determining what’s needed to return inflation to our 2% goal in a timely manner.

Listen to President Christine Lagarde present today’s decisions. The statement also covers:

• how the economy is performing

• how we expect prices to develop

• the risks to the economic outlook

• the dynamics behind financial and monetary conditions

Published and recorded during our press conference on 12 September 2024.

Our monetary policy statement at a glance, 12 September 2024 https://www.ecb.europa.eu/press/press_conference/visual-mps/2024/html/mopo_statement_explained_september.en.html

Christine Lagarde, Luis de Guindos: Monetary policy statement, 12 September 2024 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2024/html/ecb.is240912~4f7b17040c.en.html

Monetary policy decisions, 12 September 2024

https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp240912~67cb23badb.en.html

Combined monetary policy decisions and statement, 12 September 2024 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/shared/pdf/ecb.ds240912~b6348e49f9.en.pdf

Macroeconomic projections, 12 September 2024

https://www.ecb.europa.eu/press/projections/html/index.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

You can also listen on all major podcast platforms.

What does a day in the life of a banking supervisor look like? How does one become a supervisor? And why does no one care about them – until things go wrong, that is!

In our second Summer School episode, our host Stefania Secola speaks to Ramón Quintana Aguirre, who heads the supervision of the largest euro area banks.

Published on 10 August 2024 and recorded on 16 July 2024.

Show notes:

1:45 What is the typical background of a banking supervisor?

Why did our guest decide to pursue this career? And what kind of qualifications and work experience do supervisors usually have?

6:00 What do supervisors expect from the banks they supervise?

Do banks have enough capital and strong governance structures in place? And what do we do when banks aren’t properly managing their risks?

6:36 Why is the work of a banking supervisor so relevant?

If banks fail, people’s lives are directly affected. So why does banking supervision only make the news when things go wrong, but never when they succeed?

10:11 What does a day in the life of a banking supervisor look like?

From coming into the office to meeting with colleagues, managers and bank CEOs – what’s a typical day in banking supervision?

13:00 Why is supervising banks much more than just sitting at a desk?

Engaging with bankers, supervisors and executives from all over Europe – the work of a banking supervisor may be more people-oriented than you think.

15:18 How do supervisors stay on top of things?

The world in which we operate is changing. What role does training and recruitment play in helping banks face new risks?

17:05 Our guest’s hot tip

Ramón Quintana Aguirre shares his hot tip with our listeners

Further Reading:

The ECB Podcast Summer School episode 1: What do European banking supervision and football have in common?: https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod240808_episode91.en.html

European banking supervision explained

https://youtu.be/gW-5AtmyByc

FAQ on European banking supervision

https://www.bankingsupervision.europa.eu/press/publications/html/ssm.faq_about~c50751c039.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html

What is European banking supervision and how is it connected to our bank accounts? And what does football have to do with it?

Our host Stefania Secola discusses these questions and more with Supervisory Board member Elizabeth McCaul in the first episode of our Summer School on banking supervision.

Published on 8 August 2024 and recorded on 11 July 2024.

1:06 Ten years of European banking supervision

We’re celebrating ten years of European supervision this year. Let’s look at how it emerged from crisis.

3:44 How is European supervision like football?

What is supervision at European level, why was it established and how is it connected to our bank accounts?

6:00 What have been the highlights of the past ten years?

We reflect on the achievements of the past ten years, such as dealing with no shortage of challenges for banks, including the pandemic, Russia’s invasion of Ukraine and rising interest rates.

10:30 What about the future?

What does the future of European banking supervision look like? What are the challenges, and how are we preparing to handle them?

13:07 Our guest’s hot tip

Elizabeth McCaul shares her hot tip with our listeners.

It’s a Wonderful Life

https://en.wikipedia.org/wiki/It%27s_a_Wonderful_Life

https://watch.plex.tv/watch/movie/its-a-wonderful-life

European banking supervision explained

https://youtu.be/gW-5AtmyByc

FAQ on European banking supervision

https://www.bankingsupervision.europa.eu/press/publications/html/ssm.faq_about~c50751c039.en.html

The ECB Podcast: How is tech shaping Banking supervisión

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230928_episode70.en.html

The ECB Podcast Summer School #1: : a deep dive into inflation (2023 edition)

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230804_episode66.en.html

The ECB Podcast Summer School #2: the nuts and bolts of interest rates (2023 edition)

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230811_episode67.en.html

The ECB Podcast Summer School #3: the role of Banks in fighting inflation (2023 edition)

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230818_episode68.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html

Today our Governing Council decided on monetary policy, determining what’s needed to return inflation to our 2% goal in a timely manner.

Listen to President Christine Lagarde present today’s decisions. The statement also covers:

- how the economy is performing

- how we expect prices to develop

- the risks to the economic outlook

- the dynamics behind financial and monetary conditions

Published and recorded during our press conference on 18 July 2024

Additional material

Our monetary policy statement at a glance, 18 July 2024https://www.ecb.europa.eu/press/press_conference/visual-mps/2024/html/mopo_statement_explained_july.en.html

Christine Lagarde, Luis de Guindos: Monetary policy statement, 18 July 2024 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2024/html/ecb.is240718~6600b4add6.en.html

Monetary policy decisions, 18 July 2024 https://www.ecb.europa.eu/press/pr/date/2024/html/ecb.mp240718~b9e0ddd9d5.en.html

Combined monetary policy decisions and statement, 18 July 2024 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/shared/pdf/ecb.ds240718~215969ab03.en.pdf?aa558df6bb80d9463f92f3fc62465f23

European Central Bank https://www.ecb.europa.eu/home/html/index.en.html

You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Klaas Knot, Chair of the Financial Stability Board, President of De Nederlandsche Bank, and member of the ECB Governing Council, and Lesetja Kganyago, Governor of the South African Reserve Bank, discuss the challenges facing the international financial system at the ECB Forum on Central Banking in Sintra, Portugal.

Published on 6 July 2024 and recorded on 3 July 2024.

2024 ECB Forum on Central Banking

https://www.ecb.europa.eu/press/conferences/ecbforum/html/index.en.html

The ECB Podcast: The road ahead: is there room for optimism?

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod240627_episode86.en.html

The ECB Podcast: Financial Stability in a ChatGPT world

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod240517_episode84.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html

We live in uncertain times. Military conflict, including in Europe, is reshaping the geopolitical landscape. People are suffering. And our economies are also affected, which is a specific challenge for central banks.

Our co-host Paul Gordon discusses this with Moritz Schularick, President of the Kiel Institute for the World Economy.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 5 July 2024 and recorded on 2 July 2024.

1:02 A look at today’s geopolitical environment

Geopolitical risk can materialise unexpectedly. What are the risks in these uncertain times? How is the geopolitical landscape changing?

2:17 The price of war

What does military conflict mean for the economy? And how do events in other parts of the world affect us?

6:08 Challenges for central banks

Wars have an impact on our economies, including on inflation. This poses a challenge for central banks.

12:13 Managing geopolitical risks

How can we manage geopolitical risks better? Is more independence the only way?

16:17 Our guest’s hot tip

Moritz Schularick shares his hot tip with our listeners.

The ECB Forum on Central Banking

https://www.ecb.europa.eu/press/conferences/html/20240701_ecb_forum_on_central_banking.en.html

Federle, J, A Meier, G Müller, W Mutschler and M Schularick (2024), ‘DP18834 The Price of War‘, CEPR Discussion Paper No. 18834. CEPR Press, Paris & London. https://cepr.org/publications/dp18834

The Crisis of Democratic Capitalism by Martin Wolf

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html

ECB President Christine Lagarde, US Federal Reserve Chair Jerome Powell and Governor of the Banco Central do Brasil Roberto Campos Neto sat down together to discuss the steps they’ve taken to fight inflation and reflect on the road ahead during the ECB Forum on Central Banking in Sintra, Portugal.

Recorded on 2 July 2024 and published on 3 July 2024.

2024 ECB Forum on Central Banking https://www.ecb.europa.eu/press/conferences/ecbforum/html/index.en.html

The ECB Podcast - The road ahead: is there room for optimism?

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod240627_episode86.en.html

European Central Bank

https://www.ecb.europa.eu/home/html/index.en.html

European Banking Supervision

https://www.bankingsupervision.europa.eu/home/html/index.en.html