Managing Capital Flows: Macroeconomic Analysis and Policies
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Bibliographic details
- Session: CT 19.11
- Location: Shenzhen, China
- Dates: May 27-31, 2019 (1 week)
- Primary language: English
- Interpretation language: Chinese
Program overview
- Title: Managing Capital Flows: Macroeconomic Analysis and Policies (MCF)
- Type: Training Program
- Sponsor: IMF Institute for Capacity Development
- Session No.: CT 19.11
- Location: Shenzhen, China
- Date: May 27-31, 2019 (1 week)
- Primary Language: English
- Interpretation Language: Chinese
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 should have an advanced degree in economics or equivalent experience, good quantitative skills, and a basic knowledge of Excel.
- It is recommended that applicants have taken either the Financial Programming and Policies (FPP) or the Macroeconomic Diagnostics (MDS) course.
- Pre-requisites:
Course description and content
- Purpose:
- Foster understanding of the dynamics of capital flows and their effects on economic growth, macroeconomic volatility, and risk of crisis.
- Discuss policy options to reap benefits of capital market integration while minimizing and mitigating its adverse effects.
- Structure and topics:
- 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 capital account management tools and how they relate to financial regulation and exchange rate intervention.
- Case studies of actual crises to illustrate how policy setting and failure to recognize and address the buildup of vulnerabilities led to crisis.
- Pedagogy:
- Participant engagement through discussions.
- Practical workshop exercises to solidify understanding of lecture material.
Course objectives
- Upon completion, 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 economies both small and large.
- Identify how policy actions can influence, or prevent. the occurrence of capital account crises and determine what challenges a country faces in attempting to stabilize the economy in different economic scenarios.
- Evaluate the impact of financial reform policies on both economic growth and the risk of financial crisis.
- Identify a capital account crisis and assess the associated costs.
- Propose policy actions to address or avoid future crises and reduce their costs.
References