##2. rev0. pdf. ; and jesse keenan and jacob bradt, “ underwaterwriting : from theory to empiricism in regional mortgage markets in the u. s., ” climatic change, june 4, 2020, 2034 – 2067, https : / / link. springer. com / article / 10. 1007 / s10584 - 02002734 - 1. “ flood insurance, ” fema, https : / / www. fema. gov / flood - insurance. see mark carney, “ the road to glasglow ” ( speech at guildhall, london, england, february 27, 2020 ), https : / / www. bankofengland. co. uk / - / media / boe / files / speech / 2020 / the - road - to - glasgow - speech - by - markcarney. pdf? la = en & hash = dca8689207770dcbbb179cbadbe3296f7982fd0 ) ; and climate - related market risk subcommittee, managing climate risk in the u. s. financial system ( washington : commodity futures trading commission ), https : / / www. cftc. gov / sites / default / files / 2020 - 09 / 9 - 920 % 20report % 20of % 20the % 20subcommittee % 20on % 20climate - related % 20market % 20risk % 20 % 20managing % 20climate % 20risk % 20in % 20the % 20u. s. % 20financial % 20system % 20for % 20posting. pdf. see patrick bolton, morgan despres, luiz awazu pererira da silva, frederic samama and romain svartzman, the green swan : central banking and financial stability in the age of climate change ( basel : bank for international settlements, january 2020 ), https : / / www. bis. org / publ / othp31. pdf. - 4of assets. 14 similarly, changes in investor expectations about future climate policies could lead to rapid and unexpected price changes that ripple through the financial system. 15 assessing climate risk effects is complex because the predicted path of climate change is nonlinear and has likely tipping points, beyond which changes in climate conditions could occur rapidly, and climate forecasts based on historical data are no longer relevant. 16 this

a definite union - wide stability objective, would be faced with greater pressure for monetary restrictions than before. along with insufficiently flexible merchandise and labour markets, that might pose risks to the economy. that, in turn, would increase the political pressure on the ecb to relax its present stability objective. a glance at the movement of the relative prices of the principal candidates for admission to the european union bears out the supposition that, besides monetary factors, real economic catching - up processes contributed to the fact that those countries'inflation rates were all running above the eu average. in the czech republic and hungary, for instance, the prices of non - tradables rose between 1995 and 2000 about 2 percentage points faster each year than the overall cost of living. a similar picture is presented by poland and other transition economies. it must be admitted, though, that the scale of the real appreciation varies considerably, both between the individual countries and over time. at the same time, it is conspicuous, however, that the price indices for non - tradables and for the overall cost of living in germany and in france moved virtually in parallel during that period. besides the long - term movement of relative prices, the scale and correlation of short - and medium - term fluctuations provide evidence of the progress made in convergence between the present and the potential members of emu. according to the classical theories of optimum monetary areas, cf. bhf - bank, eu - osterweiterung : jenseits von nizza ( eu enlargement : beyond nice ) in wirtschaftsdienst dated 20. 1. 2001. countries should combine into a monetary union only if they are subject to largely parallel disruptions. the flexibility of the labour markets is crucial to this criterion, too. the faster and more smoothly wages adjust to new conditions, the easier it is to prevent unwelcome repercussions on the real economy. in the assessment of cyclical convergence, as in the appraisal of the longer - term catching - up process, one may have recourse to the movement of sectoral price indices. for instance, the relative prices of non - tradables in poland, the czech republic and hungary between 1995 and 2000 exhibit much greater volatility than the corresponding indices in germany or france. moreover, the disruptions in poland and hungary mostly seem to have run in the opposite direction to the business cycles in germany. empirical studies of price adjustments during economic catching