MEFMI / IMF-ICD Collaborate on Monetary Policy Workshop

MEFMI and IMF-ICD conducted a joint workshop on Monetary Policy from 22 January – 2 February 2024 in Kigali, Rwanda.

The workshop was conducted on the background that monetary policy plays an important role in modern macroeconomic management. From managing inflation and interest rates to fostering economic growth and maintaining financial stability, the impact of monetary policy is far-reaching and undeniable. However, the world is increasingly becoming complex and interconnected. The continuously evolving policy landscape provides a challenge for macroeconomic management and stability in developing and emerging countries. This changing environment makes it difficult to effectively conduct sound monetary policy and therefore requires, among others, skills to make informed choices that address emerging issues and support macroeconomic stability. To avoid implementing policies that may have unintended consequences, policymakers in the region also need to be capacitated on how to conduct better analysis. Indeed, global economic challenges, technological advancements, and evolving market dynamics necessitate continuous learning and adaptation to stay ahead of the curve.

The objective of this course was to equip participants with the skills necessary to analyze monetary policy decisions, understand their transmission to the real economy, and evaluate responses to macroeconomic shocks. This skill set is indispensable for making informed policy choices and fostering economic stability in a rapidly changing global economic landscape. By bridging the gap between theory, empirical evidence, and practical experience, the course ensured that participants not only grasped theoretical concepts but also learned how to apply them in real-world scenarios. This practical orientation is invaluable for policymakers who need to make informed decisions in dynamic economic environments. The course also acknowledged the inherent challenges and dilemmas faced by policymakers, helping participants develop a nuanced perspective on the complexities and trade-offs involved in achieving macroeconomic goals. It is expected that participants will be able to analyse how monetary policy decisions are made under various regimes to deliver price stability and to identify how these decisions are transmitted to the real economy. Participants will also be able to evaluate how the economy and monetary policy respond to macroeconomic shocks and be able to design a sound monetary policy framework.

A total of 27 officials from 10 MEFMI member countries attended the workshop. Of the 27 participants, 10 (37%) were female, while 17 (63%) were male. The workshop was facilitated by a team of resource persons from the IMF, namely Ms. Rosalind Mowatt, Mr. Abolfazl Rezghi, and Mr. Rodrigo Cubero, who is also the former Governor of the Central Bank of Costa Rica.

Prepared by Frank Chansa.