Chapter 2, International Monetary Fund External Sector Report: Pandemic, War and Global Imbalances, August 2022, IMF Washington DC

Drawing on model-based analysis of a “net-zero emissions by 2050” scenario, this chapter analyzes how climate change mitigation policies—carbon tax, green subsidy, and infrastructure investment—could impact external balances over the next decade, examining the role of policy coordination, burden sharing, and countries’ structural characteristics.