Virtual: Managing Capital Flows: Macroeconomic Analysis and Policies
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Bibliographic details
- Session: AT 24.31V
- Location: Ebene, Mauritius
- Dates: October 21, 2024 - November 1, 2024 (2 weeks)
- Delivery method: Virtual Training
- Primary language: English
- Interpretation language: French Portuguese
- Status: Deadline passed
Target audience and prerequisites
- 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.
- 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.
- Pre-requisites: Not applicable.
Course description — scope and structure
- The course is presented by the Institute for Capacity Development.
- Purpose:
- Foster understanding of the dynamics of capital flows and their effects on economic growth, macroeconomic volatility, and risk of crisis.
- Structure:
- Refresher on balance of payments statistics and description of alternative measures of capital flows and financial (capital) account openness.
- Determinants of capital flows and the link between these flows and economic growth, macroeconomic volatility, and crisis risk.
- Discussion of sequencing capital account liberalization to reap benefits of capital market integration while minimizing and mitigating adverse effects.
- Coverage of analytical methods and data sources for the analysis and forecasting of capital flows.
- Discussion of the IMF’s Institutional View on capital flows and its relation to macroeconomic policy, macroprudential measures, capital flow management tools, and exchange rate intervention.
- Case studies of actual crises illustrating how policy setting and failure to recognize and address the buildup of vulnerabilities led to crisis.
- Practical workshop exercises and participant engagement throughout the course.
Learning objectives and competencies
Upon completion of the 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.