Formation/Cours

Bachelor level knowledge of Macroeconomics.
Bachelor level knowledge of Econometrics and Finance.

The purpose of this course is to give students the ability to understand central banks behavior and the effects of their policies on financial markets. After a review of the macroeconomic importance of monetary policy, students will learn the implementation of monetary policy through conventional and unconventional instruments. They will study the impact of such decisions on different market segments such as FX market, money market, sovereign bonds and equity markets.

At the end of the class, students must be able to:
-Explain the functioning of monetary policy and its implementation through different conventional and unconventional instruments.
-Study the relation between the macroeconomic outlook and the monetary policy stance and forecast key interest rates.
-Understand the implication of monetary policy decisions and communications for asset prices (stocks, bonds and exchange rates).

Session 1 : Introduction and the objectives of monetary policy.
Session 2 : Monetary policy standard and non-standard instruments.
Session 3 : The asset prices transmission channel.
Session 4 : Understanding the central bank communication.