Severe weather shocks can have long-lasting impacts on the macroeconomy.

A new paper finds evidence of causal effects of historical redlining on present-day exposure to environmental and climate risks in six large U.S. cities.

Evidence highlights the nuanced ways in which participants in the financial markets may be strategically adapting to climate change.

This survey of climate finance research literature highlights key findings and their policy implications.

Some argue that damages from climate change aren't large enough to affect the financial system, but what about amplification effects?

What caused the housing boom and bust of the early 2000s?

A downturn following the collapse of an asset bubble — an episode of speculative booms in asset prices — can be severe and sustained, with output and employment often lower than in the prebubble economy. This Economic Brief considers some possible theoretical explanations.

Are people adequately informed about their vulnerability to future climate-related risks, and does their willingness to adapt depend on this knowledge?

We analyze the relationship between climate-related disasters and sovereign debt crises using a model with capital accumulation, sovereign default, and disaster risk.

We theoretically and empirically investigate how climate risks affect collateralized debt markets. Our results highlight the importance of heterogeneous beliefs in understanding the effects of climate change on the financial system.

Our findings underscore the persistent and far-reaching influence of historical redlining policies in shaping unequal climate risk exposure.

We use survey data to document a strong heterogeneity in stated degrees of worry about environmental problems across racial groups.