Cambodia
As global financial integration deepens and monetary frameworks evolve, central banks increasingly operate in an environment shaped by persistent supply shocks, volatile capital flows, unconventional monetary tools, and heightened macro-financial linkages. Beyond fundamentals, modern monetary policy requires understanding its advanced transmission mechanisms, external constraints, institutional complexities, and global spillover forces.
This second-level course builds directly on the foundations established in Fundamentals I and equips participants with deeper analytical and operational insights. It examines how monetary policy is implemented in practice under different financial conditions, including periods of quantitative easing, effective lower bound constraints, and reserves-saturated systems. Participants will explore the trilemma versus dilemma debate, the implications of the global financial cycle, the mechanics of cross-border banking, and the strategic trade-offs involved when leaning against financial imbalances.
Through lectures, advanced case studies, and interactive discussions, the course contextualises post-crisis monetary developments such as forward guidance, asset-purchase programmes, balance-sheet policies, and credibility challenges within the realities faced by emerging and small open economies. The programme aims to strengthen participants’ ability to interpret complex policy environments, assess spillovers, and critically evaluate modern critiques of monetary policy. The course will be delivered by SEACEN faculty and will include a number of external experts from academia and central banking.
At the end of the course, participants should be able to: (1) assess advanced monetary policy transmission mechanisms, including forward guidance, lower-bound constraints, and quantitative easing; (2) differentiate and critically evaluate key debates in modern monetary policy, such as leaning against the wind, the trilemma versus dilemma, and post-crisis policy evolution; (3) analyse how global financial integration, cross-border banking, and the global financial cycle shape monetary policy autonomy in small open economies; (4) evaluate the interaction between monetary policy, financial stability, and macroprudential frameworks, especially under high uncertainty and large shocks; (5) understand advanced policy implementation challenges, including reserves-saturated operating systems, credibility dynamics, and the role of expectations in modern frameworks.
This is the advanced follow-up to Monetary Policy Analysis I. Participants who complete Fundamental I are encouraged to proceed to Fundamental II. The course is also open to staff across the central banks/monetary authorities who may not have attended Fundamental I but possess familiarity with economic or policy work and wish to deepen their expertise in monetary policy. Knowledge of empirical methods is an advantage. While not required, some experience in using Excel, EViews, R or Stata would be an advantage. Only participants who complete 80% of the sessions will receive a certificate of completion.
We will be using several software packages in this course. Participants will need Excel, R, Eviews, Stata (optional) and Matlab, and Python for most of the empirical illustrations.
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