TARGET GROUP | Mid-level officials from central banks, ministries of finance, and other relevant government agencies involved in macroeconomic policy. Participants should hold a degree in economics and be familiar with elementary mathematics and statistics.
DESCRIPTION | This one-week course examines interrelated issues between macroeconomic policies, capital flows, and financial stability. The course will begin with some basics of international capital flows, including stylized facts, the (push and pull) drivers of capital flows, and the analytics of inflow surges and sudden stops. The subsequent review of the appropriate policy response to large capital inflows and outflows builds on the findings of the IMF’s Institutional View on the Liberalization and Management of Capital Flows. Supported by country case studies, participants will analyze the use of monetary and exchange rate policies, reserve accumulation, macroprudential policies and capital account restrictions. Participants will also apply the IMF’s External Balance Assessment (EBA) methodology to assess current accounts and exchange rates. They will deepen their knowledge of relevant concepts during group debates on current issues related to capital flows.