Connect with IMF Institute

Managing Capital Flows: Macroeconomic Analysis and Policies (MCF)

MCF

This course, presented by the Institute for Capacity Development, aims to foster understanding of the dynamics of capital flows and their effects on economic growth, macroeconomic volatility, and risk of crisis. The course starts with a refresher on balance of payments statistics and a description of alternative measures of capital flows and financial (capital) account openness. The second part of the course introduces the determinants of capital flows and the link between these flows and economic growth, macroeconomic volatility, and crisis risk. The course continues with a discussion of sequencing capital account liberalization to reap the benefits of capital market integration while minimizing and mitigating its adverse effects. This is followed by coverage of analytical methods and data sources for the analysis and forecasting of capital flows.  The course concludes with a discussion of the IMF’s Institutional View on capital flows and how it relates to macroeconomic policy, macroprudentail measures, capital flow management tools, and exchange rate intervention. The course includes case studies of actual crises, so that participants learn how policy setting and failure to recognize and address the buildup of vulnerabilities led to crisis. Throughout the course, participants are expected to engage in discussions and work on practical workshop exercises to solidify their understanding of the lecture material.

Read More Topic : Monetary Exchange Rate and Capital Account Policies

    Target Audience

    Junior to mid-level policy makers in central banks and finance ministries who have policy responsibilities related to capital account management. No prior knowledge of the material is required.

    Back to top

    Qualifications

    Participants are expected to have an advanced degree in economics or equivalent experience, good quantitative skills, and a basic knowledge of Microsoft Excel. It is recommended that applicants have taken either the Financial Programming and Policies (FPP) or the Macroeconomic Diagnostics (MDS) course.

    Back to top

    Course Objectives

    Upon completion of this course, participants should be able to:

    • Explain the dynamics of the capital account using the balance of payments of a given country. 
    • Identify the financial and economic risks that a global capital market creates for both small and large economies. 
    • Determine what challenges a country faces in attempting to stabilize the economy under different economic scenarios. 
    • Understand the appropriate sequencing of capital account liberalization and associated reforms. 
    • Identify how policy actions can influence or prevent the occurrence of capital account crises. 
    • Evaluate the impact of financial reform policies on both economic growth and the risk of financial crisis. 
    • Understand the key features of the IMF’s Institutional View, and the use of macroeconomic policies, macroprudential measures and capital flow management tools. 
    • Propose policy actions to address or avoid future crises and reduce their costs.
    Back to top

    Syllabus

    This two-week course is devoted to fostering the understanding of the dynamics of capital flows and their effects on growth, macroeconomic volatility, and crisis risk. The course discusses the policy options available to reap the benefits of capital market integration while minimizing and mitigating its adverse consequences.

    Through studies of actual crises, participants will learn how policy settings and failures in recognizing and addressing the buildup of vulnerabilities lead to crisis. They will also study what policies different countries put in place to stabilize the economy and how the economy evolved and recovered.

    Topics to be covered include the benefits and costs of financial integration; the capital inflow problem; and models of currency crises and sudden stops of capital inflows. Workshops and case studies are important components of the course. They allow the participants to grasp better the concepts and to take advantage of the experience of the instructors.

    Back to top

    Upcoming Offering

    Start date End date Location Delivery Method Session No. Primary & (Interpretation) language Apply
    September 16, 2024 September 27, 2024 Ebene, Mauritius Virtual Training AT 24.31V English (French, Portuguese) Apply online by August 2, 2024
    December 2, 2024 December 13, 2024 Vienna, Austria In-person Training JV 24.36 English (Russian) Apply online by September 1, 2024
    February 10, 2025 February 21, 2025 Singapore, Singapore In-person Training ST 25.09 English Apply online by September 13, 2024
    Back to top

    Apply Now - Application deadline approaching:

    IMF offers online training to government officials and the public. Click Learn more to find our current offerings.

    Fiscal Sustainability (FS)

    Spanish | September 16-27, 2024 | In-person Training | Washington DC, United States

    Apply online by June 20, 2024

    Securities Statistics (SS)

    English | September 23-27, 2024 | In-person Training | Washington, D.C., United States

    Apply online by June 20, 2024

    Monetary and Financial Statistics - Advanced (MFS-A)

    English | September 2-13, 2024 | In-person Training | Singapore, Singapore

    Apply online by June 21, 2024

    IFRS 9 - A Supervisory Perspective

    English | August 26-30, 2024 | In-person Training | Thimphu, Bhutan

    Apply online by June 21, 2024

    Macroeconomic Management in Resource-Rich Countries (MRC)

    English (Russian) | September 23, 2024 - October 4, 2024 | In-person Training | Vienna, Austria

    Apply online by June 23, 2024