Course on Monetary and Financial Information for Macroeconomic Analysis

CEMLA carried out the Course on Monetary and Financial Information for Macroeconomic Analysis from July 1 to 5, 2024 at its facilities in Mexico City. The main objective of the course was to provide the accounting and analytical elements necessary to analyze the balance sheet and income statement of a central bank, its connection with the formulation and monitoring of monetary policy measures and the macroeconomic impact of such measures. The course was aimed at central bank officials who carry out economic analysis, as well as officials responsible for evaluating the financial statements of central institutes.

The course began with a brief examination of the methodological framework of monetary and financial information. Subsequently, various topics regarding the operations of a central bank were analyzed. The topics were addressed from a point of view of applied theory with an emphasis on practice, that is, considering theoretical concepts and the use of models with real information.

The following topics were analyzed in the course: i) the financial information necessary to evaluate monetary and macroeconomic policies and banking supervision; ii) management of monetary and exchange rate policy: objectives, instruments, inflation and monetary aggregate targets including models and numerical examples; iii) intervention in the exchange market: objectives, methods, financial cost-benefit relationship; iv) optimal or adequate level of international reserves: calculations based on models and criteria; v) ratio of central bank capital to gross domestic product: target level and its dynamics; vi) level of central bank capital compatible with an inflation target; vii) financial vulnerability of a bank and the banking system: calculation of macroeconomic risks (credit, interest rate, exchange rate), contagion and liquidity using models of financial solidity indicators and stress tests; and viii) effects of large capital inflows and outflows in an economy.

The course was attended by 24 participants from central banks and statistical institutions from 8 countries.