A Collaborative Course with the Deutsche Bundesbank and the Oesterreichische Nationalbank on Monetary Policy Implementation

For the sixth time this year, the JVI course on Monetary Policy Implementation was delivered in collaboration with the Deutsche Bundesbank (DBB) and the Oesterreichische Nationalbank (OeNB) during March 7-11. As in 2021, the course was again delivered virtually. It was attended by 19 participants from 15 central banks (including 5 central banks that are part of the European System of Central Banks). Given the focus of the course, all participants were central bank employees, mostly practitioners from the markets or operations departments, but also experts from the economic analysis or monetary policy departments.

The course week started with an overview of the broader monetary policy framework, introducing the links between policy formulation and implementation. It then delved into the interest-rate steering approach to policy implementation, as well as the role of balance sheets and liquidity analysis. Particular attention was then paid to specific aspects of monetary policy implementation, such as the operational design of separate monetary policy instruments, FX interventions, and the collateral framework. The course also included a presentation by the OeNB on current challenges of monetary policy implementation in the euro area, including responses to the Covid-19 pandemic, ECB’s new monetary policy strategy and the outlook for inflation. The course concluded with principles for operational frameworks and a newly introduced lecture on climate-change related issues. 

Lectures were complemented by workshops developing the participants’ practical skills related to the design and liquidity effects of various monetary policy instruments, practical challenges of monetary policy implementation in participants’ countries, and evaluation criteria of operational frameworks. Daily consultation hours again proved an excellent opportunity for participants to ask questions related to the topics of the day or to other related issues, while at the same time facilitating peer-to-pear learning.

The course was well received and very highly rated, and participants were engaged and motivated. They were highly satisfied with the course content, noting that the knowledge and skills gained during the course would be helpful for their job and professional development. Discussions were lively, with participants finding lecturers knowledgeable and effective, and appreciating and their efforts to encourage discussion and participation. The main weakness noted was again related to the limitations of the virtual format, particularly regarding workshops, but most participants thought they were successfully dealt with.

It is expected that the course will be delivered again in 2023, ideally in a face-to-face format in Vienna. The intention will be to introduce other relevant topics, such as central bank digital currencies, and also to expand the coverage of climate-change related issues. The face-to-face format will also allow for more practical workshops.

Rilind Kabashi, Economist, Joint Vienna Institute