Managing Capital Flows: Macroeconomic Analysis and Policies

Source details

Session No.: ST 24.03
Location: Singapore, Singapore
Date: January 22, 2024 - February 2, 2024 (2 weeks)
Delivery Method: In-person Training
Primary Language: English
Deadline passed
Target Audience:
- Mid-level to senior officials from central banks, ministries of finance, and other government agencies.

Qualifications:
- Participants will be expected to have an advanced degree in economics or equivalent experience, and to be proficient in the use of Excel.
Pre-requisites:
- Not applicable.

The course, presented by the Institute for Capacity Development, is devoted to fostering understanding of the dynamics of capital flows and their effects on economic growth, macroeconomic volatility, and risk of crisis.
Initial module:
- Refresher on balance of payments statistics and a description of alternative measures of capital flows and financial (capital) account openness.
Determinants and effects:
- Determinants of capital flows and the link between these flows and economic growth, macroeconomic volatility, and crisis risk.
Sequencing and policy design:
- Discussion of sequencing capital account liberalization to reap the benefits of capital market integration while minimizing and mitigating its adverse effects.
Analytical methods and data:
- Coverage of analytical methods and data sources for the analysis and forecasting of capital flows.
Institutional framework and tools:
- Discussion of the IMF’s Institutional View on capital flows and how it relates to macroeconomic policy, financial regulation, and exchange rate intervention.
Case-based learning:
- Case studies of actual crises to learn how policy setting and failure to recognize and address the buildup of vulnerabilities led to crisis.
Pedagogy:
- Participants are expected to engage in discussions and work on practical workshop exercises to solidify their understanding of the lecture material.

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.