Monetary Policy (MP)

Source details

Target audience:
- Junior to mid-level officials from emerging markets and low-income countries interested in understanding and analyzing the conduct of monetary policy and its interaction with the rest of the economy.
Qualifications:
- Participants are expected to have an advanced degree in economics or equivalent experience.
- Comfort using Microsoft Excel and Excel-based applications is required.
- It is strongly recommended that applicants have completed a few general macroeconomic courses, such as Financial Programming and Policies (FPP) and Macroeconomic Diagnostic (MDS), face-to-face or online.

The course provides a comprehensive overview of:
- Monetary policy regimes.
- Monetary transmission mechanisms.
- The role of monetary policy in macroeconomic stabilization.
Pedagogy:
- Bridges theory, empirical evidence, and operational experience.
- Moves from lectures introducing basic policy concepts to hands-on workshops.
- Uses case studies to reinforce understanding and to compare and assess policy responses to shocks under different monetary policy regimes.
Special emphases:
- Optimization problems and tradeoffs involved in monetary policy decisions.
- Practical policy challenges in emerging market and developing economies.
- Evolving monetary frameworks and central bank mandates with attention to environmental, social and governance principles.
- Recent crises that have dramatically changed the landscape in which central banks operate (beyond simple interest rate policies, with due consideration to Unconventional Monetary Policy and central bank communication).
- Recent evolution of central bank digital currencies and implications for monetary policy transmission and operations.

Upon completion, participants should be able to:
- Analyze how monetary policy decisions are made under various regimes to deliver price stability and meeting other objectives.
- Identify how these decisions are transmitted to the real economy.
- Evaluate how the economy and monetary policy respond to macroeconomic shocks under various monetary policy frameworks, demonstrated through a group presentation to their peers.
Central bank practitioner-specific outcomes:
- Design a sound monetary policy framework.
- Prescribe policies consistent with the framework chosen.

The IMF offers online and in-person training to government officials and the public through the Institute for Capacity Development.