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Managing Capital Flows: Macroeconomic Analysis and Policies (MCF)

MCF

This course, presented by the Institute for Capacity Development, aims to foster understanding of the dynamics of capital flows and their effects on economic growth, macroeconomic volatility, and risk of crisis. The course starts with a refresher on balance of payments statistics and a description of alternative measures of capital flows and financial (capital) account openness. The second part of the course introduces the determinants of capital flows and the link between these flows and economic growth, macroeconomic volatility, and crisis risk. The course continues with a discussion of sequencing capital account liberalization to reap the benefits of capital market integration while minimizing and mitigating its adverse effects. This is followed by coverage of analytical methods and ...

Read More Topic : Monetary Exchange Rate and Capital Account Policies

Target Audience

Junior to mid-level policy makers in central banks and finance ministries who have policy responsibilities related to capital flow management and liberalization. No prior knowledge of the material is required.

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Qualifications

Participants are expected to have an advanced degree in economics or equivalent experience, good quantitative skills, and a basic knowledge of Microsoft Excel. It is recommended that applicants have taken either the Financial Programming and Policies (FPP) or the Macroeconomic Diagnostics (MDS) course.

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Course Objectives

Upon completion of this course, participants should be able to:

  • Explain the dynamics of the capital account using the balance of payments of a given country. 
  • Identify the financial and economic risks that a global capital market creates for both small and large economies. 
  • Determine what challenges a country faces in attempting to stabilize the economy under different economic scenarios. 
  • Understand the appropriate sequencing of capital account liberalization and associated reforms. 
  • Identify how policy actions can influence or prevent the occurrence of capital account crises. 
  • Evaluate the impact of financial reform policies on both economic growth and the risk of financial crisis. 
  • Understand the key features of the IMF’s Institutional View, and the use of macroeconomic policies, macroprudential measures and capital flow management tools. 
  • Propose policy actions to address or avoid future crises and reduce their costs.
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Syllabus

This two-week course is devoted to fostering the understanding of the dynamics of capital flows and their effects on growth, macroeconomic volatility, and crisis risk. The course discusses the policy options available to reap the benefits of capital market integration while minimizing and mitigating its adverse consequences.

Through studies of actual crises, participants will learn how policy settings and failures in recognizing and addressing the buildup of vulnerabilities lead to crisis. They will also study what policies different countries put in place to stabilize the economy and how the economy evolved and recovered.

Topics to be covered include the benefits and costs of financial integration; the capital inflow problem; and models of currency crises and sudden stops of capital inflows. Workshops and case studies are important components of the course. They allow the participants to grasp better the concepts and to take advantage of the experience of the instructors.

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Upcoming Offering

Start date End date Location Delivery Method Session No. Primary & (Interpretation) language Apply
February 10, 2025 February 21, 2025 Singapore, Singapore In-person Training ST 25.09 English Deadline passed
December 1, 2025 December 12, 2025 Vienna, Austria In-person Training JV 25.37 English (Russian) Apply online by August 24, 2025
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