Monetary Policy under Supply Shocks: Strategies for Stability in Volatile Markets Training Course

Introduction

Supply shocks, such as sharp increases in energy prices, food shortages, or disruptions in global supply chains, present complex challenges for monetary policymakers. Unlike demand-driven fluctuations, supply shocks can simultaneously fuel inflation and suppress economic growth, making it harder for central banks to achieve both price stability and employment objectives. Understanding how to design and implement effective monetary policy under such volatile conditions is critical for mitigating risks and maintaining economic resilience.

The Monetary Policy under Supply Shocks: Strategies for Stability in Volatile Markets Training Course provides participants with the analytical frameworks, policy tools, and real-world case studies needed to respond effectively to adverse supply shocks. By exploring the dynamics of stagflation, inflationary pressures, and structural vulnerabilities, this program equips policymakers, economists, and analysts with strategies to manage uncertainty, stabilize inflation, and safeguard long-term growth.

Duration: 10 Days

Target Audience:

  • Central bank policymakers and economists
  • Government fiscal and economic advisors
  • Financial market analysts and strategists
  • Academic researchers and postgraduate economics students
  • Professionals in international financial institutions
  • Banking and financial stability experts

Course Objectives:

  1. Understand the nature and causes of supply shocks
  2. Analyze the impact of supply shocks on inflation and output
  3. Explore the challenges of stagflation for monetary policy
  4. Evaluate the limitations of conventional monetary tools under supply shocks
  5. Study global case studies of policy responses to crises
  6. Learn how fiscal and monetary policy coordination mitigates risks
  7. Examine the role of expectations and credibility during shocks
  8. Assess policy trade-offs between inflation control and growth support
  9. Strengthen analytical skills for scenario forecasting and modeling
  10. Design effective policy frameworks for resilience and recovery

Course Modules:

Module 1: Introduction to Supply Shocks

  • Definition and types of supply shocks
  • Distinction between supply and demand shocks
  • Historical examples
  • Impact on inflation and output
  • Policy relevance

Module 2: Sources of Modern Supply Shocks

  • Energy and commodity price surges
  • Food price volatility
  • Global supply chain disruptions
  • Climate and environmental shocks
  • Geopolitical tensions

Module 3: Inflationary Pressures from Supply Shocks

  • Cost-push inflation dynamics
  • Exchange rate pass-through effects
  • Sectoral inflation patterns
  • Risks of persistent inflation
  • Household welfare impacts

Module 4: Output and Employment Effects

  • Slower growth and recessionary risks
  • Labor market disruptions
  • Productivity shocks
  • Structural rigidities
  • Case study examples

Module 5: Stagflation and Policy Dilemmas

  • Defining stagflation
  • 1970s global stagflation lessons
  • Trade-offs in monetary policy
  • Risks of policy inaction
  • Long-term consequences

Module 6: Conventional Monetary Policy Tools

  • Interest rate adjustments
  • Liquidity management
  • Transmission channels
  • Shortcomings under supply shocks
  • Case-based discussion

Module 7: Unconventional Monetary Policy Measures

  • Quantitative easing
  • Forward guidance
  • Negative interest rates
  • Targeted credit programs
  • Effectiveness assessment

Module 8: Fiscal-Monetary Policy Coordination

  • Role of fiscal policy in shock management
  • Public spending and subsidies
  • Debt sustainability challenges
  • Coordination frameworks
  • Country experiences

Module 9: Managing Inflation Expectations

  • Role of communication strategies
  • Anchoring expectations under uncertainty
  • Surveys and market-based indicators
  • Central bank credibility
  • Long-term confidence building

Module 10: Exchange Rate Dynamics during Shocks

  • Currency depreciation risks
  • Imported inflation challenges
  • Foreign reserve management
  • Exchange rate interventions
  • Dollarization implications

Module 11: Global Case Studies

  • Oil price shocks in advanced economies
  • Emerging market vulnerabilities
  • COVID-19 pandemic disruptions
  • Lessons from financial crises
  • Comparative policy analysis

Module 12: Supply Shocks in Emerging Economies

  • Structural vulnerabilities
  • Limited policy space
  • External dependence on imports
  • Capital flow volatility
  • Resilience strategies

Module 13: Forecasting and Scenario Analysis

  • Econometric modeling approaches
  • Stress-testing frameworks
  • High-frequency data use
  • Risk management applications
  • Simulation exercises

Module 14: Long-Term Resilience Strategies

  • Energy diversification policies
  • Food security frameworks
  • Building robust supply chains
  • Sustainable policy reforms
  • Innovation and productivity growth

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

 

 

Monetary Policy Under Supply Shocks: Strategies For Stability In Volatile Markets Training Course in United Kingdom
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