Monetary Policy (MP)

Source details

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.

Participants are expected to have an advanced degree in economics or equivalent experience and be comfortable using Microsoft Excel and Excel-based applications.
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 is presented by the Institute for Capacity Development and provides a comprehensive overview of monetary policy regimes, monetary transmission mechanisms, and the role of monetary policy in macroeconomic stabilization.
The course bridges theory, empirical evidence, and operational experience by illustrating optimization problems and tradeoffs involved in monetary policy decisions.
Learning approach:
- Lectures introducing basic policy concepts.
- Hands-on workshops with a special focus on practical policy challenges in emerging market and developing economies.
- Case studies to reinforce understanding and to compare and assess policy responses to various shocks under different monetary policy regimes.
Topical emphases:
- Evolving monetary frameworks and central bank mandates with attention to environmental, social and governance principles.
- Recent crises that have changed the landscape in which central banks operate (beyond simple interest rate policies), including Unconventional Monetary Policy and central bank communication.
- Recent evolution of central bank digital currencies and implications for monetary policy transmission and operations.

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 peers.
For central bank practitioners:
- Design a sound monetary policy framework.
- Prescribe policies consistent with the framework chosen.