Courses
Monetary Policy Implementation Tools (MPIT)
October 20th to 24th, 2024
The course presents:
- How to use advanced forecasting techniques to estimate autonomous factors of the central bank balance sheet. The objective is to improve the calibration of the monetary policy liquidity operations, rightsizing the reserve requirement, and/or publishing liquidity information for the market. The course will incorporate recent advances in forecasting literature and international best practices, back-test different forecasting models with various degrees of complexity and provide guidance to implement the most suitable model. The faculty will deliver the software infrastructure (open source) so that the authorities can easily apply the model to their day-to-day work.
- How to estimate and implement foreign exchange intervention rules based on a risk approach. The course covers techniques suitable for: i) central banks operating a flexible exchange rate arrangement, intervening on the foreign exchange market with financial and price stability objectives; ii) central banks transitioning from a fixed exchange rate arrangement to a floating exchange rate arrangement. The course covers the theoretical background for risk-based FX interventions, as explained in the IMF Working Paper No. 21/32 (Lafarguette and Veyrune 2021).
