Course on Financial Programming

The course took place from June 12 to 16, 2023 at the CEMLA facilities in Mexico City. The main objective of the course was to analyze the theoretical and practical aspects of a macroeconomic stabilization program with real information. The sessions highlighted the importance of financial programs being feasible and coherent for the economy as a whole under different monetary and exchange policy strategies. It was also emphasized that financial programming must consider fundamental macroeconomic identities, as well as sectoral budget restrictions consistent with the information used for analysis, diagnosis and projections.

Financial programming, as a conceptual and practical development, is very useful for macroeconomic analysis, since it considers accounting relationships in the generation of consistent sectoral scenarios for the economy as a whole. The course began with a brief presentation on the stages involved in preparing the financial programming, such as the information required, the objectives sought, and the methodology implemented.

Subsequently, analytical aspects of national accounting, the main macroeconomic variables, economic identities, domestic balance and the budget restriction of the economy were addressed. The course continued with a review of the fiscal accounts, its budget, the objectives of fiscal policy and the viability of public debt.

The monetary and financial accounts were reviewed in accordance with the IMF's 2016 Monetary and Financial Statistics Manual, as well as the impact of monetary policy with capital flows under different exchange rate regimes. The course continued with an analysis of the different items of the balance of payments and the role of the nominal and real exchange rate.

The budget constraints of the macroeconomic sectors, detailed in the fund flow matrix, were exemplified with information from Costa Rica. Finally, he analyzed the strength of the banking sector with the use of financial solidity indicators and stress tests: credit risk, interest rate and exchange rate risks, and liquidity and contagion risks.

Throughout the course, practical exercises are included that were developed in work groups, with the purpose of reaffirming the cases that were previously reviewed in the sessions.

The course was attended by central bank professionals responsible for financial programming who carry out macroeconomic analysis, as well as those who develop macroeconomic projections. The course was attended by 21 participants from 7 countries and international organizations, in addition to the exhibitor.