Globalization, Financial Markets
and Climate Change
Barry Eichengreen
University of California, Berkeley
Outline
1) Financial markets as a source of insurance
2) How this assumes that the pool is large and risks are independent. It assumes verifiability and
limited moral hazard – conditions that may not hold in practice.
3) But how there may be a variety of imperfect solutions to these problems.
4) Two examples: reinsurance and cat bonds.
