Course on Monetary and Financial Information for Macroeconomic Analysis

Content

The course first examines the methodological framework of the monetary and financial information and then discusses various topics related to the operations of a central bank (CB) in a developing country. The topics are approached from the viewpoint of applied theory with emphasis on practical aspects; that is, using models to analyze hypothetical and real data.

The main topics covered in the course are the following: i) monetary and financial information pertinent for analyzing monetary macropolicies and banking supervision; ii) monetary exchange rate policy management: objectives, instruments, inflation targeting, monetary aggregate targeting, monetary programming, models, examples; iii) intervention in the exchange rate market: objectives, methods, financial cost-benefits; iv) optimal/adecuate level of international reserves: calculation based on various criteria and models; v) CB capital to GDP ratio: target level and its dynamics; vi) level of CB capital compatible with an specific inflation target; vii) financial vulnerability of a bank and a banking sector: assessment of macro (credit, interest rate, exchange rate), contagion and liquidity risks using financial soundness indicators and stress testing models; and viii) large capital inflows and outflows.

The course has a substantial practical orientation: concepts, formulas and models are applied to data of selected countries, and case studies are presented. PowerPoint presentations and Excel templates are distributed at the beginning of the seminar in an electronic file.