Interaction of Monetary and Financial Stability Policies

BoE

TARGET GROUP | Mid- to senior-level officials from central banks, ministries of finance, or regulatory agencies with an interest in monetary policy, macroprudential policy, and financial stability.

DESCRIPTION | The objective of this course is to examine the interactions of monetary and financial stability policies and their implications for policy design. The course first discusses the objectives and evolving tools of both policy areas and explores their role and effectiveness in different phases of the business and financial cycles. It also summarizes lessons learned since the Great Financial Crisis and sheds light on the evolving policy interactions during the Covid-19 pandemic and in an environment of high inflation, monetary tightening, and elevated financial stability risks.

Based on an analysis of the complementarities, possible side effects, and potential conflicts or trade-offs between the two policy areas, the course addresses challenges such as the role of asset prices in both policies and the extent to which monetary and financial stability policies can and should be operated independently, with separate decision-making, accountability, and communication structures. Alternative institutional arrangements for monetary and macroprudential policy are reviewed, using the example of the Bank of England’s Monetary Policy Committee and Financial Policy Committee, but drawing also on other case studies. It also includes modeling of the interactions between the two policies, including the text modelling using up-to-date tools.

The course requires a high level of participation, through discussions and short participant presentations on the topic of the course based on individual country experiences. The lectures are supplemented by hands-on workshops and guest lectures with an applied policy interaction focus

Back to course overview

Course Details

Start: 20241111Nov 11
End: 20241115Nov 15

Language: English

Sponsoring Organization: JVI/BoE

Admin Arrangements


Application Deadline: August 11, 2024