Training course on Advanced Macroeconomic Analysis for Central Bank Policy

Module 1: Foundations of Advanced Macroeconomic Analysis

Review of core macroeconomic principles

Key macroeconomic indicators and their interpretation

The role of central banks in macroeconomic management

Module 2: Monetary Policy Frameworks and Transmission Mechanisms

Interest rate channels and credit channels

Expectations, credibility, and forward guidance

Unconventional monetary policies (QE, negative rates, etc.)

Module 3: Inflation Dynamics and Policy Responses

Inflation measurement and forecasting models

Inflation targeting frameworks

Trade-offs between inflation control and economic growth

Module 4: Output, Employment, and Business Cycles

Analyzing GDP growth trends and output gaps

Labor market dynamics and unemployment measures

Understanding cyclical fluctuations and policy implications

Module 5: Fiscal Policy and its Interaction with Monetary Policy

Fiscal multipliers and crowding-out effects

Debt sustainability analysis

Policy coordination between fiscal and monetary authorities

Module 6: Exchange Rates, Capital Flows, and External Balance

Exchange rate regimes and central bank policy

Balance of payments analysis

Managing capital inflows and outflows in open economies

Module 7: Financial Stability and Macroprudential Policy

Systemic risk assessment and early warning indicators

Macroprudential tools and their effectiveness

Interaction between monetary policy and financial stability goals

Module 8: Macroeconomic Modeling for Central Bank Policy

DSGE (Dynamic Stochastic General Equilibrium) models

Structural vs. reduced-form models

Scenario building and policy simulations

Module 9: Policy Analysis in Emerging and Developing Economies

Special challenges for small and open economies

Dealing with supply shocks and external vulnerabilities

Case studies of central bank policy in developing contexts

Module 10: Contemporary Issues in Central Banking and Policy Challenges

Climate change and macroeconomic stability

Digital currencies and monetary policy implications

Global economic shocks (e.g., pandemics, geopolitical risks)

Module 11: Applied Policy Workshops and Case Studies

Real-world central bank case studies

Group exercises in policy analysis and decision-making

Simulation of monetary policy committee (MPC) deliberations

Module 12: Capstone Project and Policy Recommendations

Developing a macroeconomic analysis report

Policy recommendation presentation to peers/instructors

Final assessment and feedback