Wildfires and flooding have become increasingly common due to the effects of climate change.
As these changes increase, they are expected to majorly impact a financial system already under pressure from the Covid-19 pandemic.
Matthew E. Kahn, Bloomberg Distinguished Professor of Economics and Business at Johns Hopkins University, shared an article on how a new report from the US Commodity Futures Trading Commission has highlighted the impact of climate change on financial markets.
The report states that the disruptions caused by climate change can threaten the fundamental conditions that support the country’s financial system.
US President Donald Trump had downplayed the impact of climate change on economic growth.
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The new report is a first from a government entity highlighting the damage that climate change can have on financial markets.
The first risk posed by climate change is expected to be rising prices of homes and mortgage default rates due to the wildfires and flooding.
Climate change is also expected to impact agricultural commodity prices, the report added.
In other news, Professor Steve Hanke, economist at Johns Hopkins University, shared an article on more than 10,000 deaths related Covid-19 in Argentina.
Despite having a strict lockdown, the country has not been able to control the spread of the virus.