Monetary Operations: Tools and Techniques for Policy Implementation

Why Attend

• What are the effects of pandemic-induced uncertainty on monetary policy? • How is climate change impacting monetary policy strategy, conduct and implementation? • How will digital currencies impact the monetary policy? • What will be the spill over effects when major central banks withdraw stimulus? These are some of the main challenges facing those working in monetary operations as they look ahead to 2022. As ever, they will look to manage expectations: internally and externally, among markets and stakeholders. Yet the uncertain nature of financial markets renders this communication far from straightforward. This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, culminating in the Practical Implementation Workshop.

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Course Objectives

  • At the conclusion of the training, participants will be able to:
  • • Understand the strategic challenges to monetary operations in the context of the economic and political climate
  • • Assess the implications and opportunities that CBDCs have on monetary policy
  • • Tackle the impacts that climate risk has on monetary policy
  • • Gain insight into the Libor transition and the key features of the SOFR framework
  • • Create liquidity forecasts and use tools and methods to overcome key challenges of volatile markets

Target Audience

Central Bankers only

Dealing with Disruptive Forces

Climate risk and the ESG agenda: impact and implications for central banks

  • Climate change as the emerging source of local and systemic instability
  • Impact and implications for monetary policy strategy, conduct and implementation
  • Overview of new roles and responsibilities for central banks in the areas of green finance and ESG
  • Discussion: how are central banks tackling climate risk in the delegates’ home jurisdictions?


Monetary Policy in 2021: leaning against or with the wind?

  • Assessment of dilemmas, conflicts and trade-offs between monetary operations and the financial stability mandate
  • Implications for central banks’ independence and accountability
  • Overview of key factors and dynamics that will shape the framework for monetary policy operations in the years to come
  • Discussion: future of monetary policy in the delegates’ home jurisdictions


Digital currencies and monetary policy: implications for monetary policy, central banks and central banking

  • Taxonomy of Central Bank Digital Currencies (CBDCs), stable coins and crypto assets
  • Impact and implications of CBDCs for markets and portfolios
  • Opportunities and risks of CBDCs for monetary policy implementation
  • Discussion: will Covid-19 speed the transition to digital currencies?

Building an Effective Framework for Policy Implementation

What (not) to say to markets, when and how?

  • The role of communication with markets in monetary policy design and implementation
  • Forward guidance as a policy tool
  • Examples of frameworks and processes ensuring that central banks’ messages are consistent and context-sensitive
  • Practical examples: how to communicate in time of market stress or volatility


The new toolkit for optimising monetary policy operations

  • Evolution of approaches for managing domestic liquidity and monetary policy operations
  • Frameworks for tackling challenges at both strategic and day-to-day level
  • Key features of the modern monetary operations toolkit
  • Case study: monetary operations framework at the European Central Bank


Monetary Policy in India: a case study of tackling spillovers

  • Overview of monetary policy in India
  • Capital flows and the Indian economy: a shifting dynamic
  • Tips for managing flows and moderating impacts
  • Discussion: the role of communication in responding to spillovers

From Collateral to Liquidity Management: Emerging Risks and Opportunities

Financial soundness of central banks

  • Assessment of potential losses: stock and flow
  • Frameworks for monetary easing and yield curve control
  • Mitigation of loss: the costs and benefits
  • Normalizing policy: market implications and political reactions


Central bank asset purchases: lessons from recent global experience

  • Motivations for launching asset purchase programmes
  • Key components of programmes and realistic goals
  • Risk and opportunities, in particular fiscal dominance and debt monetisation
  • Key principles for central banks going forward


The importance of liquidity forecasts

  • Liquidity forecast and exchange rate regime: different means and different goals
  • Corridor vs. floor systems: implications for liquidity forecasting
  • Market volatility and the regulatory demand for liquidity
  • Liquidity forecasting tools and techniques

The Future of Monetary Policy

The 'Great Demographic Reversal': ageing societies, waning inequality, and an inflation revival

  • Overview of disinflation across the last four decades
  • Evolution of between-country and within-country inequality
  • The reversal of demography and globalisation
  • Case study: impact of an ageing society


What's next for central bank balance sheets?

  • Quantitative easing: a remedy for liquidity problems
  • Benefits and drawback of the shift to a floor system of money market operations
  • Key components of quantitative easing as a generalised expansionary policy
  • Discussion: the future of central bank balance sheets and money market operations


Fed and monetary policy response to Covid-19: recent developments, outlook and wider impact

  • Understanding the state of the art of the Fed’s policy response to the economic impact of Covid-19
  • Overview of strategic challenges in the context of the current economic and political climate
  • Impact and implications for the global financial system
  • Expectations in relation to further steps and policy developments


Closing remarks and delegate action plans

  • Concluding session led by the chair
  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

Implementation Workshop

Benefits of attending the Implementation Workshop:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Step 1: Select Prefered Schedule

Date Fee (GHS)

Step 2: Choose Registration Type