Just as the events of the 1970s and emergence of stagflation throughout the industrial world, led to new
policy paradigms, I believe that
recent events will force us to develop new approaches to thinking about economic fluctuations and inflation which will, in turn, drive major
changes in thinking about
fiscal and monetary
policy.
These and other issues are discussed in the Managing Director's Statement on the Role of the Fund in Addressing Climate
Change, a
recent Staff Discussion Note and IMF books
Fiscal Policy to Mitigate Climate
Change: A Guide for Policymakers and Implementing a US Carbon Tax: Challenges and Debates.