The high degree of economic openness and increased regional and global integration of most SEACEN economies have complicated central banks’ tasks of monetary policy management, particularly in considering their stance on exchange rate volatility and on the impact of international price levels on domestic inflation. In an increasingly globalised world, these policy considerations add layers of complexity in designing appropriate policy frameworks and in assessing the growing importance of external factors on internal macroeconomic balance. This SEACEN course has evolved into a training course programme focusing on the exchange rates, the role of international price levels on domestic inflation, cross-border capital flows and external debt analysis. The course will combine both theoretical and empirical understanding of these topics; as well as hands-on exercises on the exchange rate and external debt analysis.
At the end of the course, participants will be able to (1) construct and interpret alternative exchange rate indices; (2) provide an assessment exchange rate pass-through, exchange rate equilibrium and misalignment; (3) monitor and analyse the build-up of external vulnerabilities by understanding interlinkages between external account indicators; (4) assess the impact the effectiveness of exchange rate intervention; and (5) understand external debt dynamics and underlying economic assumptions.
Middle-level officers/technical staff of central banks with at least two years of experience in external sector analysis, exchange rate policy, monetary and financial policy analysis and surveillance. Strong background on international macroeconomics and/or international finance is an advantage. Knowledge of various external accounts data sets is also an advantage.
• Exchange rate and terms of trade
• Exchange rate pass-through
• Exchange rate co-movements and currency blocs
• Capital flows management
• Cross-border banking and monetary policy transmission
• Financial exchange rates
• Foreign exchange intervention
• External debt analysis
• Monetary policy trilemma vs dilemma