Climate risk and commodity currencies

Arbeitspapier

The positive relationship between real exchange rates and natural resource income is well understood and studied. However, climate change and the transition to a lower-carbon economy now challenges this relationship. We document this by proposing a novel news media-based measure of climate change transition risk and show that when such risk is high, major commodity currencies experience a persistent depreciation and the relationship between commodity price fluctuations and currencies tends to become weaker.

Object Details

• ISBN: 978-82-8379-181-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 18/2020

Classification and Topics

• Classification: Wirtschaft ; Bayesian Analysis: General ; Forecasting Models; Simulation Methods ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Expectations; Speculations ; General Aggregative Models: Neoclassical ; Price Level; Inflation; Deflation ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
• Subject: Exchange Rates ; Climate ; Risk ; Commodities

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kapfhammer, Felix ; Larsen, Vegard Høghaug ; Thorsrud, Leif Anders
• Event: Veröffentlichung
• (who): Norges Bank
• (where): Oslo
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/246121
• Last update: 10.03.2025, 11:44 AM CET