MEFMI Conducts Training on Monetary Policy Analysis

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. Policymakers, therefore, need to be skilled in making informed choices that address emerging issues and support macroeconomic stability. It is thus necessary to capacitate policymakers on how to conduct better monetary policy analysis to avoid implementing policies that may have unintended consequences.

To assist policymakers in ensuring that policy conduct remains consistent with the gradual changes in the policy environment, MEFMI offered an e-learning course on introduction to monetary policy analysis from 14 November – 2 December 2022. The course strengthened participants’ understanding of the main concepts used in monetary policy analysis. It also gave participants an appreciation of the evolving monetary policy regimes such as reserve money and inflation targeting regimes. The course also took participants through the Forecasting and Policy Analysis System (FPAS) as a way of shedding light on how central banks in the region can modernise their monetary policy frameworks towards a more forward-looking approach. In addition, it raised awareness of the impact of monetary policy in a digital era. It is expected that the knowledge and skills gained from this workshop will help support and strengthen monetary policy analysis in the MEFMI region.

The workshop targeted officials responsible for monetary policy analysis at central banks and ministries of finance. A total of 55 officials from 11 MEFMI member countries attended the workshop. Of the 55 participants, 21 (38%) were female while 34 (62%) were male. The workshop was facilitated by Dr. Austin Chiumia from the Reserve Bank of Malawi, Mr. Peter Zgambo from the Bank of Zambia, and Dr. Frank Chansa from MEFMI.

Prepared by Frank Chansa.