Climate risk and commodity currencies
The positive relationship between real exchange rates and natural resource income is well understood and studied. However, climate change and the transition to a lower-carbon economy now challenges this relationship. We document this by proposing a novel news media-based measure of climate change tr...
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| creator | Kapfhammer, Felix Larsen, Vegard H Thorsrud, Leif Anders |
| description | The positive relationship between real exchange rates and natural resource income is well understood and studied. However, climate change and the transition to a lower-carbon economy now challenges this relationship. We document this by proposing a novel news media-based measure of climate change transition risk and show that when such risk is high, major commodity currencies experience a persistent depreciation and the relationship between commodity price fluctuations and currencies tends to become weaker. |
| format | Article |
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We document this by proposing a novel news media-based measure of climate change transition risk and show that when such risk is high, major commodity currencies experience a persistent depreciation and the relationship between commodity price fluctuations and currencies tends to become weaker.</description><subject>climate</subject><subject>commodities</subject><subject>exchange rates</subject><subject>JEL: C11</subject><subject>JEL: C53</subject><subject>JEL: D83</subject><subject>JEL: D84</subject><subject>JEL: E13</subject><subject>JEL: E31</subject><subject>JEL: E37</subject><subject>risk</subject><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><sourceid>3HK</sourceid><recordid>eNrjZFB1zsnMTSxJVSjKLM5WSMxLUUjOz83NT8ksqVRILi0qSs1Lzkwt5mFgTUvMKU7lhdLcDIpuriHOHrrJQG0lmXnxeflFifGGhkamBvFG5kbmxoZGxsSoAQA4-Cbb</recordid><startdate>2020</startdate><enddate>2020</enddate><creator>Kapfhammer, Felix</creator><creator>Larsen, Vegard H</creator><creator>Thorsrud, Leif Anders</creator><general>Norges Bank</general><scope>3HK</scope></search><sort><creationdate>2020</creationdate><title>Climate risk and commodity currencies</title><author>Kapfhammer, Felix ; Larsen, Vegard H ; Thorsrud, Leif Anders</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-cristin_nora_11250_27273123</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><topic>climate</topic><topic>commodities</topic><topic>exchange rates</topic><topic>JEL: C11</topic><topic>JEL: C53</topic><topic>JEL: D83</topic><topic>JEL: D84</topic><topic>JEL: E13</topic><topic>JEL: E31</topic><topic>JEL: E37</topic><topic>risk</topic><toplevel>online_resources</toplevel><creatorcontrib>Kapfhammer, Felix</creatorcontrib><creatorcontrib>Larsen, Vegard H</creatorcontrib><creatorcontrib>Thorsrud, Leif Anders</creatorcontrib><collection>NORA - Norwegian Open Research Archives</collection></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext_linktorsrc</fulltext></delivery><addata><au>Kapfhammer, Felix</au><au>Larsen, Vegard H</au><au>Thorsrud, Leif Anders</au><format>book</format><genre>document</genre><ristype>GEN</ristype><atitle>Climate risk and commodity currencies</atitle><jtitle>Working Paper</jtitle><date>2020</date><risdate>2020</risdate><abstract>The positive relationship between real exchange rates and natural resource income is well understood and studied. However, climate change and the transition to a lower-carbon economy now challenges this relationship. We document this by proposing a novel news media-based measure of climate change transition risk and show that when such risk is high, major commodity currencies experience a persistent depreciation and the relationship between commodity price fluctuations and currencies tends to become weaker.</abstract><pub>Norges Bank</pub><oa>free_for_read</oa></addata></record> |
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| language | eng |
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| source | NORA - Norwegian Open Research Archives |
| subjects | climate commodities exchange rates JEL: C11 JEL: C53 JEL: D83 JEL: D84 JEL: E13 JEL: E31 JEL: E37 risk |
| title | Climate risk and commodity currencies |
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