Oct 12, 2020

Oct 23, 2020

Course Number: 

Application Deadline:

Sep 13, 2020


Monetary Policy (MP)

Target Audience

Junior to mid-level policy makers in central banks and finance ministries who have policy responsibilities related to capital account management. No prior knowledge of the material is required.

Qualifications and Requirements

Participants are expected to have an advanced degree in economics or equivalent experience and be comfortable using Microsoft Excel and Excel-based applications. This is an overview course. It is strongly recommended that applicants have completed a few general macroeconomic courses, such as Financial Programming and Policies (FPP) and the classroom or online Macroeconomic Diagnostics (MDS/MDSx) course.

Course Description

This course gives a comprehensive overview of monetary policy regimes, monetary transmission mechanisms, and the role of monetary policy in macroeconomic stabilization. The course bridges the gap between theory, empirical evidence, and operational experience by illustrating the optimization problems and tradeoffs involved in monetary policy decisions. The learning process moves from lectures introducing the basic concepts to hands-on workshops. Case studies are used to reinforce participant understanding and to help them compare and assess a variety of experiences.

This online course will be held over two weeks from 9:00 a.m. to 12:30 p.m. As this is an online course, emphasis will be given to live-demos and discussions and participants are expected to do homework and fully participate in the course. Participants will work on a group project which simulates the monetary policy response to Covid-19 shocks.

Course Objectives

Upon completion of this course, participants should be able to:

  • Analyze how monetary policy decisions are made under various regimes to deliver price stability.
  • Identify how these decisions are transmitted to the real economy.
  • Evaluate how the economy and monetary policy respond to macroeconomic shocks under various monetary policy frameworks, demonstrated through a group presentation to their peers.

Central bank practitioners should also be able to:

  • Design a sound monetary policy framework.
  • Prescribe policies consistent with the framework chosen.