- As global economy moves to decarbonize over the next 30 -years, Canada GDP growth will slow due to less foreign demand and lower commodity prices
- There will be less inflation pressure and monetary policy will need to be more stimulative relative to the baseline
There's the idea that lower commodity demand will lead to lower commodity prices but I'm not necessarily on board with that thinking. In oil, I suspect that a lack of investment in long-cycle supply will ultimately hit hard.
In any case, demographic, political and technological changes are going to be larger drivers of monetary policy than climate in the foreseeable future.