Monetary Operations: Tools and Techniques for Policy Implementation - main page Q4

Monetary Operations: Tools and Techniques for Policy Implementation

Monetary Operations: Tools and Techniques for Policy Implementation

November 8 – 11 

Chair: Francesco Papadia, former director general for market operations, European Central Bank

  • What are the effects of pandemic-induced uncertainty on monetary policy?
  • How is climate change impacting monetary policy strategy, conduct and implementation?
  • How will digital currencies impact the monetary policy?
  • What will be the spillover effects when major central banks withdraw stimulus?

These are some of the main challenges facing those working in monetary operations as they look ahead to 2022. As ever, they will look to manage expectations: internally and externally, among markets and stakeholders. Yet the uncertain nature of financial markets renders this communication far from straightforward.

This course is designed to equip central bankers to meet these challenges.

Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, culminating in the Practical Implementation Workshop.

Timings: 8am-12pm (ET) | 12pm-4pm (GMT) | 8pm-12am (SGT) 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

Dealing with Disruptive Forces

12:0012:15

Course introduction
Course introduction session led by the chair

06:00 - 06:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Francesco Papadia

Former director general for market operations

European Central Bank

Francesco Papadia is chair of primary collateralised securities, chair of the selection panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various universities. Between June 1998 and May 2012 he was director general for market operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department at the Bank of Italy. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of the Bank of Italy. He holds a degree in law from the University of Rome and did his postgraduate studies in economics at Istao, Ancona and at the London Business School. He has written numerous articles and books.

12:1513:15

Climate risk: impact and implications for monetary policy

06:15 - 07:15

  • Climate change as the emerging source of local and systemic instability
  • Impact and implications for monetary policy strategy, conduct and implementation
  • Overview of new roles and responsibilities for central banks in the areas of green finance and ESG
  • Discussion: how are central banks tackling climate risk in the delegates’ home jurisdictions?
Morten Kjærgaard

Independent consultant

former National Bank of Denmark

Morten is an independent consultant within asset management and public finance. He is former Head of Reserve Management at Danmarks Nationalbank where he was responsible for the trading, risk management, quant and monetary policy collateral units. He has also worked with monetary policy implementation, government debt management and international relations and has worked as an international consultant on behalf of the World Bank.

13:1513:30

Break

07:15 - 07:30

13:3014:30

Monetary Policy in 2021: leaning against or with the wind?

07:30 - 08:30

  • Assessment of dilemmas, conflicts and trade-offs between monetary operations and the financial stability mandate
  • Implications for central banks’ independence and accountability
  • Overview of key factors and dynamics that will shape the framework for monetary policy operations in the years to come
  • Discussion: future of monetary policy in the delegates’ home jurisdictions
Francesco Papadia

Former director general for market operations

European Central Bank

Francesco Papadia is chair of primary collateralised securities, chair of the selection panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various universities. Between June 1998 and May 2012 he was director general for market operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department at the Bank of Italy. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of the Bank of Italy. He holds a degree in law from the University of Rome and did his postgraduate studies in economics at Istao, Ancona and at the London Business School. He has written numerous articles and books.

14:3015:00

Networking break
An opportunity to share experiences with your fellow participants.

14:30 - 15:00

15:0016:00

Digital currencies and monetary policy: implications for monetary policy, central banks and central banking

08:45 - 09:45

  • Taxonomy of Central Bank Digital Currencies (CBDCs), stable coins and crypto assets
  • Impact and implications of CBDCs for markets and portfolios
  • Opportunities and risks of CBDCs for monetary policy implementation
  • Discussion: will Covid-19 speed the transition to digital currencies?
Tuomas Välimäki

Board member

Bank of Finland

Building an Effective Framework for Policy Implementation

12:0013:00

What (not) to say to markets, when and how?

06:00 - 07:00

  • The role of communication with markets in monetary policy design and implementation
  • Forward guidance as a policy tool
  • Examples of frameworks and processes ensuring that central banks’ messages are consistent and context-sensitive
  • Practical examples: how to communicate in time of market stress or volatility
Niko Herrala

Head of monetary policy implementation

Bank of Finland

Niko Herrala is an economist in the Market Operations and Analysis division of the ECB. His tasks include designing the monetary policy implementation framework of the ECB such as the recent non-standard monetary policy measures. Prior to joining the ECB he has been a market operations expert in Bank of Finland and Bank of Estonia implementing monetary policy auctions, liquidity management, bond purchases and foreign exchange operations in practice.

13:0013:15

Break

07:00 - 07:15

13:1514:15

The new toolkit for optimising monetary policy operations

07:15 - 08:15

  • Evolution of approaches for managing domestic liquidity and monetary policy operations
  • Frameworks for tackling challenges at both strategic and day-to-day level
  • Key features of the modern monetary operations toolkit
  • Case study: monetary operations framework at the European Central Bank
Jesper Berg

Director general, Danish Financial Supervisory Authority and former head of market operations

National Bank of Denmark

14:1514:30

Break

08:15 - 08:30

14:3015:30

Monetary Policy in India: a case study of tackling spillovers

08:30 - 09:30

  • Overview of monetary policy in India
  • Capital flows and the Indian economy: a shifting dynamic
  • Tips for managing flows and moderating impacts
  • Discussion: the role of communication in responding to spillovers
Charan Singh

former Reserve Bank of India

Dr. Charan Singh is currently serving as the Non Executive Chairman of Punjab & Sind Bank. He was full time visiting faculty and former RBI Chair Professor (Dec 2012 to Dec 2016) at the Indian Institute of Management Bangalore, India where he taught comparative monetary policy and policy issues in Indian economy.

Earlier, he was a Senior Economist at the Independent Evaluation Office of the International Monetary Fund, Washington DC from August 2009 to November 2012 and Research Director (Departments: Economic Policy, Debt Management) at the Reserve Bank of India (1997–2009). Singh earned his doctorate in Economics from the University of New South Wales, Sydney, Australia. He was a visiting scholar for more than a year each at Department of Economics, Harvard University and the Stanford Center for International Development, Stanford University. He is now serving as Director on the Board of National Housing Bank, Delhi and NABARD Financial Services Ltd, Bangalore. He is also Member, Governing Board at Policy Foundation, New Delhi; Member of Research Advisory Committee, BIRD, National Bank for Agriculture and Rural Development; Honorary Fellow, SKOCH Development Foundation; and Member of the Informal Advisory Group on Housing Sector Issues, IMF, Washington DC

From Collateral to Liquidity Management: Emerging Risks and Opportunities

12:0013:00

Beyond Libor: implications for central banks and markets

06:00 - 07:00

  • Overview of Libor transition and discontinuation
  • Risks and implications for monetary policy design and implementation
  • Key features of the new SOFR framework
  • Discussion: expectations in delegates’ home jurisdictions

13:0013:15

Break

07:00 - 07:15

13:1514:15

Central bank asset purchases: lessons from recent global experience

07:15 - 08:15

  • Motivations for launching asset purchase programmes
  • Key components of programmes and realistic goals
  • Risk and opportunities, in particular fiscal dominance and debt monetisation
  • Key principles for central banks going forward
Simon Gray

Regional Advisor for Africa, the Middle East and Central Asia

International Monetary Fund

14:1514:45

Networking break
An opportunity to share experiences with your fellow participants.

14:15 - 14:45

14:4515:45

The importance of liquidity forecasts

08:30 - 09:30

  • Liquidity forecast and exchange rate regime: different means and different goals
  • Corridor vs. floor systems: implications for liquidity forecasting
  • Market volatility and the regulatory demand for liquidity
  • Liquidity forecasting tools and techniques
Miklos Vari

Economist

Banque de France

Miklos Vari is currently a Research Economist in the Bank of France monetary policy division, and a consultant for the IMF monetary and capital market department. He was previously an analyst in the ECB’s Directorate-General of market operations and an Economist at the International Monetary Fund. He has written policy papers and published academic articles in leading economics and finance economic journals on the impact of central bank’s market interventions. Miklos hold a PhD from the Paris School of Economics.

The Future of Monetary Policy

11:3013:00

The Determination of Inflation and The Future of Central Balance Bank Sheets

06:00 - 07:00

  • Evolution of the central bank balance sheets as operational tools for policy implementation
  • Key dynamics shaping balance sheet size and composition
  • Overview of challenges for central banks from advanced and emerging economies
  • Discussion: what principles should determine the approach to the central bank balance sheets at the time of monetary policy normalisation?
Charles Goodhart

Professor emeritus

London School of Economics

13:0013:15

Break

07:00 - 07:15

13:1514:15

Fed and monetary policy response to Covid-19: recent developments, outlook and wider impact

07:15 - 08:15

  • Understanding the state of the art of the Fed’s policy response to the economic impact of Covid-19
  • Overview of strategic challenges in the context of the current economic and political climate
  • Impact and implications for the global financial system
  • Expectations in relation to further steps and policy developments
Patricia Mosser

Director of the MPA program in economic policy management

University of Columbia

Patricia C. Mosser is director of the MPA Program in Economic Policy Management at Columbia University’s School of International and Public Affairs and leads the school’s Initiative on Central Banking and Financial Policy.  Previously, she was head of research and analysis at the Office of Financial Research, U.S. Treasury.  Mosser spent over 20 years at the Federal Reserve Bank of New York where she was senior manager at the New York Fed’s open market desk overseeing financial market analysis, monetary policy implementation, crisis-related facilities, foreign exchange and investment operations, and analysis of financial stability and reform. In 2009, she was SOMA manager for the FOMC.  She previously served as an economist and manager in the New York Fed Research Department and as an assistant professor in the Economics Department at Columbia.  Mosser has written on financial stability and monetary policy topics including financial reform, crisis policy tools, cyber risks to financial stability, and the monetary transmission mechanism.  She was previously a consultant to the Bank of England, a member of the Deputies Committee of the Financial Stability Oversight Council, and a board member of the American Economic Association’s Committee on the Status of Women in the Economics Profession.  Currently, she serves as an outside director of Nomura Holdings Incorporated.    She received a BA from Wellesley College, an MSc with distinction from the LSE, and a PhD from MIT.

14:1514:30

Break

14:15 - 14:30

14:3015:00

Closing remarks and delegate action plans
Concluding session led by the chair

08:30 - 09:00

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

15:0015:15

Feedback forum
We will send a link in this session to the feedback form and would kindly ask that you help us improve the training product by completing the survey. We would also welcome any verbal feedback in this session.

09:00 - 09:15

Date: November 25
The Implementation Workshop is a chair-led forum where attendees will have the opportunity to discuss challenges around implementing the ideas they have learnt during the Live Content. Prior to the workshop you will be emailed questions to prepare in order to gain the most from the session with peers.

13:0014:00

Implementation Workshop

11:00 - 12:00

Benefits of attending the Implementation Workshop: 

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Understand the strategic challenges to monetary operations in the context of the economic and political climate
  • Assess the implications and opportunities that CBDCs have on monetary policy
  • Tackle the impacts that climate risk has on monetary policy
  • Gain insight into the Libor transition and the key features of the SOFR framework
  • Create liquidity forecasts and use tools and methods to overcome key challenges of volatile markets

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Francesco Papadia

Former director general for market operations

European Central Bank

Francesco Papadia is chair of primary collateralised securities, chair of the selection panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various universities. Between June 1998 and May 2012 he was director general for market operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department at the Bank of Italy. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of the Bank of Italy. He holds a degree in law from the University of Rome and did his postgraduate studies in economics at Istao, Ancona and at the London Business School. He has written numerous articles and books.