How do we know what prices will be on January 1, 2023?
Prices have risen recently. They are rising. They likely will continue to rise, unless the events propelling these increases change suddenly and dramatically. The sudden break with equilibrium predisposes us to believe that further disequilibrium is likely. If we see waves, we predict waves. If we see placid seas, we expect calm. We forget that there are always sharks beneath the surface.
Good governance means anticipating disruptive events and taking prudent steps during calm to reduce the impact of storms. We failed to calculate the real price of buying energy from Russia, and we now must pay that price all at once. Should we apply that lesson to the cost of climate change?
Thank you, Jakub Seidler of the Česká bankovní asociace (Czech Banking Association), Vojtěch Benda of the Czech National Bank Board and AmCham CZ Vice-President Michal Nebeský of Citibank who joined us at AmCham CZ ’s discussion with the Netherlands-Czech Chamber of Commerce last week.