The emergence of new technologies, financial innovation, and cross-border policy and risk spillovers have significantly evolved in the last few years. These bring new opportunities as well as challenges in maintaining macroeconomic and financial stability. Yet central bank policy objectives are clearly mandated. Nonetheless, central banks/monetary authorities remain in tune with these emerging trends, and some are considering broadening policy considerations, instruments, and monitoring and surveying tools. This course covers current as well as emerging central bank objectives, policy approaches, transmission mechanism, and other evolving trends that impact monetary and financial stability. It contextualises unconventional monetary policy, financial innovations, and forward guidance in view of current monetary framework. Moreover, this course highlights the relation of labour market outcomes and money demand on monetary policy.
At the end of the course, participants will be able to (1) understand various central bank policy objectives, designs and potential trade-offs; (2) know the various monetary policy transmission mechanisms; (3) understand the use and assess the effectiveness of unconventional monetary policy; (4) identify monetary policy implications of financial innovations; and (5) appreciate the importance of money demand and labour market outcomes on monetary policy.
Middle-level officers/technical staff of central banks with at least two years of experience in monetary and financial policy analysis and surveillance. A strong background on macroeconomic theory and monetary policy is an advantage.
• Central bank policy objectives
• Monetary policy transmissions
• Unconventional monetary policy
• Monetary and financial stability
• Policy objectives and financial technologies (FinTech)
• Monetary policy forward guidance
• Labour market outcomes
• Money demand in an increasingly cashless society
• Empirical tools used for monitoring and assessing policy objectives