Interaction of Monetary and Financial Stability Policies - JVI/Bank of England Course

The one-week Interaction of Monetary and Financial Stability Policies course was delivered at JVI between October 19-23 by staff from the JVI and the Bank of England’s (BoE) Centre for Central Banking Studies. The course focused on the interplay between monetary and financial stability policies and implications for policy design.

After discussing the objectives, transmission and tools of both policy areas, the course reviewed complementarities, side effects and potential conflicts and the extent to which monetary and financial stability policies can and should be operated independently, with separate decision-making, accountability, and communication structures. Alternative institutional arrangements for these policy functions, from the Bank of England, as well as other jurisdictions, were reviewed. The course also discussed the conceptual framework and relevant suite of tools for policy analysis at the European Central Bank (ECB) as well as the modelling of policy interactions, coordination and communication. It also included frontier topics such as the implications of stablecoins, tokenization and decentralized finance for monetary and financial policies. 

Lectures were complemented by interactive components such as case study discussions, workshops and group presentations to simulate risk and policy recommendations for monetary and financial policy committees. respectively. Guest lecturers from the ECB and the National Bank of Slovakia contributed on monetary and financial policy interactions and communication.
22 participants from 16 countries completed this course, giving it a 4.9 rating (out of 5.0) in the end-of-course evaluation. Participants appreciated the coverage and balance of topics, as well as the expertise and engagement of the lecturers.

The course will be followed by another collaborative course with Bank of England in September 2027, on macroprudential tools for banks and non-banks.

Eugen Tereanu, Senior Economist, JVI