TARGET GROUP | (i) Junior- to mid-level central bank officials working in monetary policy operations; and (ii) officials from central banks or ministries of finance/economy whose responsibilities require, or who have a strong interest in acquiring, a thorough understanding of monetary policy implementation.
DESCRIPTION | The implementation of monetary policy requires both a well-defined system of monetary policy goals and a developed set of policy instruments. This one-week course will begin by placing the central bank’s monetary operations in the context of its broader monetary policy strategy, touching on the choice of the monetary policy/exchange rate regime, monetary policy objectives and instruments, operational goals, and the functioning of the monetary policy transmission mechanism. Then the course will focus on the practicalities of implementing monetary policy, including its effects on the central bank’s balance sheet. It will discuss monetary policy instruments, factors affecting short-term money market liquidity, forecasting liquidity, the conduct of open market operations, the role of required reserves, standing facilities, and central bank communication.
• Monetary policy strategy and exchange rates
• Monetary policy implementation and impact on the central bank’s balance sheet
• Open market operations, auction mechanisms, collateral requirements, repos and reverse repos, foreign exchange interventions
• Unconventional monetary policies
• Central bank communication
• Case studies, including participant presentations