This course aims to provide the participants with the essential monetary policy knowledge and skills relevant for business success. By the end of this course, the participants will be able to:

• Identify and explain the key concepts and principles of monetary policy, such as money, banking, central banking, inflation, interest rates, etc.
• Apply the monetary policy way of thinking to analyze the behavior and decisions of the central bank and the monetary authority
• Understand the different types of monetary policy instruments, such as open market operations, reserve requirements, discount rate, etc., and their effects on money supply and interest rates
• Recognize the role and impact of exchange rates, currency regimes, and foreign exchange markets on monetary policy and business
• Evaluate the benefits and costs of various monetary policy strategies, such as inflation targeting, price level targeting, nominal GDP targeting, etc., for monetary policy and business

This course is designed for professionals who want to learn or refresh their knowledge of monetary policy and its relevance to business. It is suitable for anyone who works in or interacts with the financial sector, such as managers, entrepreneurs, consultants, analysts, bankers, investors, etc.

Taking this course will help the participants to:

• Develop a solid foundation and understanding of monetary policy and its importance for business
• Enhance their critical thinking and problem-solving skills
• Improve their decision-making and strategic planning abilities
• Increase their awareness and appreciation of the monetary environment and its challenges and opportunities for business
• Develop their confidence and competence in applying monetary policy concepts and tools to real-world business situations

Day One:

Introduction to Monetary Policy and Money

• What is monetary policy and why is it important for business?
• The monetary policy problem: price stability vs economic growth vs financial stability
• The monetary policy way of thinking: opportunity cost, relative prices, and expectations
• The concept of money: functions, characteristics, and types
• The measurement of money: money supply vs money demand vs velocity of money

Day Two:

Money Creation and Banking

• How is money created and how does it affect the economy and business?
• The role of banks in money creation: deposits, loans, and reserves
• The balance sheet of a bank: assets, liabilities, and equity
• The money multiplier: definition, determinants, and limitations
• The regulation of banks: capital requirements, liquidity requirements, and deposit insurance

Day Three:

Central Banking and Monetary Policy Instruments

• What is central banking and how does it conduct monetary policy?
• The functions of central banks: lender of last resort, banker to the government, banker to the banks, etc.
• The objectives of central banks: inflation vs output vs employment vs exchange rate vs financial stability
• The instruments of monetary policy: open market operations vs reserve requirements vs discount rate vs interest rate on excess reserves
• The transmission mechanism of monetary policy: money market channel vs credit channel vs exchange rate channel vs expectations channel

Day Four:

Exchange Rates and Currency Regimes

• What are exchange rates and how do they influence monetary policy and business?
• The concept of exchange rates: definition, determination, and classification
• The types of currency regimes: fixed vs flexible vs intermediate
• The foreign exchange market: participants, transactions, and interventions
• The effects of exchange rate changes on monetary policy: appreciation vs depreciation vs revaluation vs devaluation

Day Five:

Monetary Policy Strategies and Evaluation

• What are monetary policy strategies and how do they affect monetary policy and business?
• The concept of monetary policy strategies: definition, objectives, and features
• The types of monetary policy strategies: inflation targeting vs price level targeting vs nominal GDP targeting vs Taylor rule vs discretion
• The benefits and costs of monetary policy strategies: credibility vs flexibility vs accountability vs transparency
• The evaluation of monetary policy strategies: performance vs consistency vs robustness

To enhance learning and practical application of concepts, the training course will use a combination of interactive lectures, case studies, group discussions, practical exercises, and real-world examples. Participants will also get the chance to collaborate on group projects and create action plans adapted to the needs of their respective organizations.