Macroeconomic Diagnostic Training Course

INTRODUCTION

The ability to accurately assess a country's macroeconomic situation is paramount for policymakers, economists, and financial analysts. The Macroeconomic Diagnostic (MDSx) training course is specifically developed to equip participants with the analytical tools and practical skills most used by applied macroeconomists, including those at the International Monetary Fund (IMF). This Macroeconomic Diagnostic course will empower participants to navigate the complexities of economic diagnostics, enabling them to make informed decisions that support economic stability and growth. Participants will gain hands-on experience with sector-by-sector assessments, learning how to apply these tools to real-world scenarios. By analyzing a case study country, "Diagnostica," participants will refine their ability to interpret data, develop comprehensive narratives of economic situations, and construct risk assessment matrices (RAM). This Macroeconomic Diagnostic course goes beyond technical implementation, focusing on the interpretation of results and the creation of strategic insights essential for effective economic management.

COURSE OBJECTIVES

By the end of this Macroeconomic Diagnostic course, participants will be able to:

• Strengthen their ability to assess a country's macroeconomic situation using practical tools.
• Analyze potential output, calculate output gaps, and assess sources of inflation.
• Evaluate the stance of monetary and fiscal policy and interpret financial sector soundness indicators.
• Assess public and external debt sustainability and evaluate possible exchange rate misalignments.
• Analyze medium-term economic prospects and identify impediments to long-term growth.

DURATION

10 Days

WHO SHOULD ATTEND

This Macroeconomic Diagnostic course is ideal for:

• Middle to senior-level officials in Central Banks, particularly from Research, Bank Supervision, Financial Markets, Banking Services, and National Payments Systems departments.
• Officials from Finance Ministries involved in macroeconomic analysis and policy formulation.

COURSE CONTENT

Module 1: Review of Macroeconomic Fundamentals

• Recap of key macroeconomic indicators and concepts
• Understanding economic models and their assumptions
• Role of expectations in macroeconomic analysis

Module 2: Economic Growth Theories and Measurement

• Endogenous growth theories (Solow model, Romer model, etc.)
• Human capital and technological progress in growth
• Measuring and interpreting potential output and productivity

Module 3: Business Cycle Analysis

• Real business cycle theory
• Keynesian and New Keynesian perspectives on business cycles
• Empirical methods for identifying and analyzing economic recessions and expansions

Module 4: Monetary Policy and Inflation Dynamics

• Phillips curve in the short run and long run
• Rational expectations and adaptive expectations
• Role of central banks in controlling inflation expectations

Module 5: Financial Markets and Macroeconomic Linkages

• Asset pricing and risk premium models
• Macroeconomic implications of financial market frictions
• Analyzing the transmission of monetary policy through financial markets

Module 6: Fiscal Policy and Debt Sustainability

• Dynamic scoring of fiscal policies
• Overlapping generations models
• Intergenerational equity and public debt sustainability

Module 7: Open Economy Macroeconomics

• Exchange rate regimes and their implications
• Mundell-Fleming model and monetary policy in an open economy
• Terms of trade, current account dynamics, and external imbalances

Module 8: Macroeconomic Policy Coordination

• International spillover effects of policies
• Policy coordination and global economic stability
• Challenges in achieving coordinated policy responses

Module 9: Advanced Time Series Analysis

• Unit roots and cointegration
• Vector Autoregressive (VAR) models
• Impulse response functions and forecast error variance decomposition

Module 10: Advanced Case Studies and Research Projects

• Analyzing complex economic scenarios and policy challenges
• Independent research projects applying advanced diagnostic techniques
• Group presentations and discussions on cutting-edge macroeconomic issues

PREREQUISITES

• Strong foundation in macroeconomic theory and analysis.
• Proficiency in mathematical and statistical techniques used in advanced macroeconomics.
• Prior exposure to DSGE models and other advanced economic modeling frameworks.

GENERAL NOTES

• The course is delivered by experienced trainers with extensive expertise in the field.
• The training includes a mix of practical activities, theoretical knowledge, group work, and case studies.
• Participants will receive comprehensive training manuals and additional reference materials.
• A certificate is awarded upon successful completion of the course.
• Custom-tailored courses to meet specific organizational needs are available. For more information, contact us at training@skillsforafrica.org.
• The training will be conducted at the Skills for Africa Training Institute in Nairobi, Kenya.
• The training fee covers tuition, materials, lunch, and the training venue. Accommodation and airport transfers can be arranged upon request.
• Payments should be made to our bank account before the training starts, and proof of payment sent to training@skillsforafrica.org.