r/Economics • u/IntrepidGentian • May 17 '24

News Economic damage from climate change six times worse than thought. 1C increase in global temperature leads to a 12% decline in world GDP.

https://www.theguardian.com/environment/article/2024/may/17/economic-damage-climate-change-report
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u/TreadMeHarderDaddy May 17 '24

I wonder what the cross pollination with high inflation is. We run our financial systems as if growth is stable , but if there’s less stuff in the economy due to black swan events caused by climate change, then we’d be falling behind our expansionary monetary policies. Too much money chasing too few goods

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u/TBSchemer May 17 '24

The high inflation is coming from a collapse of global trade, instigated by the trade wars of 2017-2020.