- As the global economy decarbonizes over the next 30 years, Canada’s GDP growth will slow due to lower foreign demand and lower commodity prices
- There will be less inflationary pressures and monetary policy should be more stimulative relative to the baseline scenario
There is the idea that a drop in demand for commodities will lead to lower commodity prices, but I don’t necessarily agree with that idea. In oil, I suspect a lack of investment in long-cycle supply will eventually hit hard.
In any case, demographic, political and technological changes will be more important drivers of monetary policy than climate for the foreseeable future.