<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>EU member states observe an elaborate process to preserve macroeconomic stability: the macroeconomic imbalance procedure (MIP). The MIP is supposed to monitor and prevent macroeconomic imbalances – and if necessary, correct them. It considers a variety of variables to determine the existence of imbalances, e.g. the current account balance or unit labour costs. However, the macroeconomic impact of climate change is ignored. In light of the growing economic risks due to climate change, this article argues that the MIP should consider climate-related risks explicitly to maintain relevance.</p>
</abstract>

EU member states observe an elaborate process to preserve macroeconomic stability: the macroeconomic imbalance procedure (MIP). The MIP is supposed to monitor and prevent macroeconomic imbalances – and if necessary, correct them. It considers a variety of variables to determine the existence of imbalances, e.g. the current account balance or unit labour costs. However, the macroeconomic impact of climate change is ignored. In light of the growing economic risks due to climate change, this article argues that the MIP should consider climate-related risks explicitly to maintain relevance.

Climate Change in the EU’s Macroeconomic Imbalance Procedure

Intereconomics

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Climate Change in the EU\u2019s Macroeconomic Imbalance Procedure"}

EU member states observe an elaborate process to preserve macroeconomic stability: the macroeconomic imbalance procedure (MIP). The MIP is supposed to monitor...

Climate Change in the EU’s Macroeconomic Imbalance Procedure

Pubblicato online: 10 giu 2024

Pagine: 176 - 182

DOI: https://doi.org/10.2478/ie-2024-0035

© 2024 Wolf-Fabian Hungerland et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.