A framework for central banks navigating political uncertainty in the transition

DiLeo, Monica (2025) A framework for central banks navigating political uncertainty in the transition. . London School of Economics and Political Science. Centre for Economic Transition Expertise, London, UK.

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Abstract

As central bankers have increasingly considered the impacts of climate change and a net zero transition on their mandates, analysis has focused on the challenges of the technical uncertainty presented by financial and climatic systems. This report builds on previous work by focusing on how uncertainty created by political systems affects central banks. Political uncertainty is not inherently negative. It is often a byproduct of the dynamism inherent in democratic political systems. However, it can generate practical challenges for central banks and create a risk that they will avoid action on certain topics relevant to their mandates. This report offers central bankers a framework for defining different types of political uncertainty and principles to enable them to cope and move forward.

Item Type:	Monograph (Report)
Official URL:	https://cetex.org/publications/
Additional Information:	© 2025 The Author
Divisions:	Grantham Research Institute
Subjects:	H Social Sciences > HG Finance H Social Sciences > HC Economic History and Conditions J Political Science > JF Political institutions (General) K Law > K Law (General)
Date Deposited:	22 Dec 2025 15:42
Last Modified:	22 Dec 2025 15:42
URI:	http://eprints.lse.ac.uk/id/eprint/130739

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