Inflation and Balance of Payments Dynamics: Global Strategies for Macroeconomic Stability Training Course

Introduction

Inflation and balance of payments are two closely intertwined pillars of macroeconomic stability that directly influence national growth, exchange rate stability, and financial resilience. When inflationary pressures escalate, they often trigger external imbalances, currency depreciation, and trade deficits, while balance of payments crises can, in turn, fuel domestic inflationary shocks. Policymakers, economists, and financial analysts must therefore understand the delicate interaction between domestic inflation control and external sector sustainability to effectively design and implement robust economic policies.

The Inflation and Balance of Payments Dynamics: Global Strategies for Macroeconomic Stability Training Course equips participants with the analytical skills, tools, and applied knowledge needed to analyze the dual challenges of inflation management and external balance. Through interactive sessions, case studies, and scenario simulations, learners will explore key drivers of inflation, balance of payments components, exchange rate linkages, and the global transmission of shocks. By the end of the program, participants will be prepared to craft effective policy responses for resilient and stable economies.

Duration: 10 Days

Target Audience:

  • Central bank and government economic policymakers
  • Financial market regulators and analysts
  • Professionals in international financial institutions
  • Economists and development practitioners
  • Academic researchers and postgraduate students
  • Banking and financial stability experts

Course Objectives:

  1. Understand the interlinkages between inflation and the balance of payments
  2. Analyze the key drivers of inflationary and external imbalances
  3. Explore exchange rate dynamics in shaping inflation and trade flows
  4. Evaluate balance of payments components and vulnerabilities
  5. Assess the impact of global shocks on domestic inflation and external accounts
  6. Examine monetary and fiscal policy coordination in managing imbalances
  7. Learn best practices from global case studies
  8. Develop skills in forecasting and scenario analysis
  9. Strengthen capacity for policy design under uncertainty
  10. Build strategies for sustainable inflation and external balance management

Course Modules:

Module 1: Foundations of Inflation and Balance of Payments

  • Overview of macroeconomic stability concepts
  • Inflation measurement and dynamics
  • Balance of payments structure
  • Historical perspectives
  • Policy relevance

Module 2: Key Drivers of Inflation

  • Demand-pull vs cost-push inflation
  • Imported inflation effects
  • Exchange rate pass-through
  • Commodity price volatility
  • Structural bottlenecks

Module 3: Components of the Balance of Payments

  • Current account dynamics
  • Capital account flows
  • Financial account analysis
  • Errors and omissions
  • Overall balance assessment

Module 4: Exchange Rate Dynamics

  • Exchange rate regimes and policies
  • Currency depreciation and inflation
  • Trade competitiveness impacts
  • Reserve management strategies
  • Case study: floating vs fixed regimes

Module 5: Inflation and External Sector Linkages

  • Trade balance effects of inflation
  • Capital flow dynamics
  • External debt sustainability
  • Spillover impacts
  • Policy coordination challenges

Module 6: Global Shocks and Domestic Vulnerabilities

  • Oil price shocks
  • Global financial crises
  • Pandemic-induced disruptions
  • Geopolitical risks
  • Lessons from emerging markets

Module 7: Balance of Payments Crises

  • Causes of external crises
  • Currency and debt crises interactions
  • Inflationary spirals during crises
  • IMF programs and interventions
  • Case study reviews

Module 8: Inflation Targeting and External Balance

  • Central bank inflation targeting frameworks
  • Managing external shocks
  • Monetary independence constraints
  • Policy effectiveness debates
  • Cross-country comparisons

Module 9: Fiscal Policy and External Accounts

  • Role of fiscal deficits in balance of payments
  • Debt dynamics and inflation
  • Government expenditure pressures
  • Coordination with monetary policy
  • Sustainability strategies

Module 10: Capital Flows and Inflation Dynamics

  • Hot money flows
  • Foreign direct investment impacts
  • Portfolio investment volatility
  • Capital controls debates
  • Risk management tools

Module 11: Exchange Rate Policy Choices

  • Pegged vs floating systems
  • Dual exchange rate regimes
  • Crawling peg systems
  • Impact on inflation outcomes
  • Policy credibility considerations

Module 12: Case Studies in Inflation and External Imbalances

  • Latin America debt crises
  • Asian financial crisis
  • Eurozone external imbalances
  • Sub-Saharan Africa inflation dynamics
  • Comparative policy lessons

Module 13: Forecasting Inflation and Balance of Payments

  • Econometric models and tools
  • Leading indicators analysis
  • Scenario planning
  • Risk assessment frameworks
  • Data challenges

Module 14: Policy Design for Stability

  • Integrated inflation-external balance frameworks
  • Coordinated policy mix approaches
  • Short-term vs long-term measures
  • Building institutional capacity
  • Resilience and sustainability focus

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

 

 

Inflation And Balance Of Payments Dynamics: Global Strategies For Macroeconomic Stability Training Course in Lithuania
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