Unconventional Monetary Policies (QE, Negative Rates) Training Course: A Deep Dive

Introduction

In the wake of major financial crises, central banks have increasingly turned to unconventional monetary policies to stimulate economic growth and maintain financial stability. This training course provides a detailed and practical examination of these tools, including quantitative easing (QE), forward guidance, and negative interest rate policies. Participants will gain a fundamental understanding of why these measures were introduced, how they are implemented, and their profound impacts on financial markets, inflation, and the broader economy.

This program goes beyond the mechanics to analyze the strategic and policy challenges associated with these tools. We will explore the transmission channels of unconventional policies, their effectiveness in different economic contexts, and the risks they pose, such as asset price bubbles and challenges to central bank independence. Through a blend of theoretical frameworks and real-world case studies, the course is designed to equip policymakers and financial professionals with the analytical skills needed to evaluate the past use of these policies and prepare for their potential future application.

Target Audience

  • Central bank analysts and policymakers
  • Financial market regulators and supervisors
  • Commercial bank treasury and risk managers
  • Financial journalists and economic commentators
  • Investment and portfolio managers
  • Government treasury and finance officials
  • International financial institution staff
  • Academics and students of monetary policy

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the rationale for deploying unconventional monetary policies.
  • Describe the mechanisms and tools of quantitative easing (QE).
  • Analyze the impacts of negative interest rate policies (NIRP).
  • Evaluate the effectiveness and side effects of forward guidance.
  • Assess the risks associated with large-scale asset purchases.
  • Discuss the challenges of exiting from unconventional policies.

Modules Course Content

Module 1: The Rationale for Unconventional Policies

  • The limitations of conventional interest rate policy
  • The concept of the effective lower bound
  • The role of deflationary pressures
  • The need to restore financial market function
  • Unconventional policies as a response to crises

Module 2: Quantitative Easing (QE) Mechanics

  • The basics of large-scale asset purchases
  • How QE affects the central bank's balance sheet
  • The transmission channels of QE (portfolio balance, confidence)
  • Differentiating QE from money printing
  • The impact on long-term interest rates

Module 3: QE and its Economic Impact

  • The effects of QE on asset prices (equities, bonds)
  • The impact on inflation and inflation expectations
  • The role of QE in credit creation
  • The debate over wealth inequality
  • QE's effect on exchange rates

Module 4: Negative Interest Rate Policy (NIRP)

  • The concept of negative interest rates
  • How NIRP is implemented by central banks
  • The effects on commercial banks and profitability
  • The impact on household savings and consumption
  • NIRP's role in stimulating lending

Module 5: Forward Guidance

  • The purpose of managing market expectations
  • The different types of forward guidance (odyssey, delphic)
  • How forward guidance affects the yield curve
  • The challenges of being credible
  • The role of forward guidance during and after QE

Module 6: Managing Policy Expectations

  • The importance of central bank communication
  • Signaling future policy actions
  • The role of press conferences and policy statements
  • Managing the "taper tantrum" risk
  • The impact of transparency on policy effectiveness

Module 7: Macroprudential Policy and Unconventional Tools

  • The relationship between monetary and macroprudential policy
  • Using macroprudential tools to manage risks from QE
  • The potential for asset price bubbles
  • The challenges of policy coordination
  • The role of central banks in financial stability

Module 8: The Exit from Unconventional Policy

  • Strategies for unwinding QE
  • The process of balance sheet normalization
  • The risks of a premature exit
  • The challenges of communicating an exit strategy
  • The impact of exiting on market liquidity

Module 9: Global Case Studies of QE and NIRP

  • The US Federal Reserve's response to the 2008 crisis
  • The European Central Bank's QE program
  • The Bank of Japan's multi-decade experience
  • The Swiss National Bank's use of negative rates
  • The Bank of England's post-Brexit stimulus

Module 10: The Future of Unconventional Monetary Policy

  • The debate over the next set of tools
  • The potential for a new policy paradigm
  • The long-term consequences of large balance sheets
  • The role of fiscal policy in a low-interest-rate world
  • The ongoing challenges for central banks

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Unconventional Monetary Policies (qe, Negative Rates) Training Course: A Deep Dive in Bulgaria
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