Climate-related shocks – and this is my first corollary – typically fall into this second category of shocks.7 Droughts and heatwaves often lead to crop shortfalls, putting upward pressure on food prices.8 Hurricanes and floods destroy production capacity, thereby raising input and output prices. And unusually cold winters can be seen as malign productivity shocks – that is, they may raise input prices for the same level of output. So, much like other supply shocks, weather-related disturbances typically pose a dilemma for central banks, which may then have to choose between stabilising inflation or economic activity. Policymakers have usually resolved this trade-off by calibrating their response to a supply-side shock according to its estimated persistence and size. If the shock is thought to be short-lived, and unlikely to affect the medium-term inflation outlook relevant for monetary policy, we usually “look through” the shock – that is, we tolerate its temporary effects on inflation without taking any action. If the effects prove more persistent, however, and are at risk of spreading more widely through the economy, monetary policy action may be warranted. The impact of climate change on monetary policy It is fair to say that most weather-related shocks have been short-lived and contained – at least so far. This year’s extremely hot and dry summer, for example, meant smaller harvests for many European farmers. But its overall price effects have been limited to vegetable prices, and will probably prove to be temporary.

Regional seminar of the International Financial Corporation and Bank Al-Maghrib on  “Utilization of Public Credit Registry data for the Central Bank’s institutional functions”  Rabat, February 22, 2018 -----------------------Opening remarks by Mr. Abdellatif Jouahri Governor of Bank Al-Maghrib ------------------------  Excellency the Ambassador of Japan, IFC Country Manager for the Maghreb region, Ladies and gentlemen, It gives me great pleasure to welcome you today to the Bank Al-Maghrib training center in Rabat for this seminar on the “Utilization of Public Credit Registry data for the Central Bank’s institutional functions”. I would first like to express my sincere thanks to all the participants and speakers for having accepted our invitation, and more particularly to the IFC representatives, Mr. Xavier REILLE and Mr. Oscar MADEDU, and their team here for their valuable contribution to preparing this meeting. I would also like to give special thanks to His Excellency Ambassador Takuji HANATANI and through him the Japanese Government, which has made a vital contribution to developing credit information-sharing infrastructure in Morocco. The relevance of this meeting lies in the sharing of experiences between the participating experts. The seminar panels, scheduled throughout the day, will set the stage for fruitful discussions between:    central banks which are well advanced in terms of operating credit registries or which are starting to set them up, on the one hand; and those which are preparing to meet the new challenges such registries impose in terms of micro and macro-prudential supervision and monetary policy, on the other hand.