The Central Bank Research Association (CEBRA) has issued a call for papers for its 2025 Annual Meeting. The focus is on understanding the financial impacts of extreme weather events, such as floods, droughts, heat waves, and storms. Although these events have historically had limited global macroeconomic effects due to their localized nature and reliance on insurance in advanced economies, there is growing concern about their future impact.
There are uncertainties regarding the timing, magnitude, non-linearity, and spillover effects of extreme weather events. Additionally, potential mispricing or mismanagement of associated risks complicates assessments of their economic and financial system impacts.
The financial consequences of extreme weather events are increasing. Understanding how these effects propagate through the financial system compared to conventional financial shocks is crucial. The rising economic losses from such events may affect institutions' ability to provide financial services in specific segments and geographies. Consequently, there is a need to assess potential risks to financial stability from a forward-looking perspective.
Authors are invited to submit papers that analyze and provide insights into the direct and indirect impacts of extreme weather events on the financial system. Papers exploring cross-border and cross-sectoral transmission of these events and their risk implications for financial institutions are particularly encouraged.
Submissions should be made via the CEBRA website by March 20, 2025.