Unconventional Monetary Policy

Course overview

In recent years, after reducing their reference interest rates at nearly 0%, most central banks designed a variety of novel monetary policy tools to fight recessions, including communication strategies, credit policies, and large-scale asset purchases. These new measures often referred to as “unconventional” monetary policies. The objective of this course is to provide participants with a thorough understanding of the state-of-the-art research on different types of unconventional policies, of their costs and benefits, and of their effects on financial and aggregate economic variables.

The Barcelona GSE Intensive Course on Unconventional Monetary Policy’s faculty includes some of the leading academics and economists in the area of monetary policy, with extensive experience in policymaking institutions such as the Federal Reserve and the European Central Bank. Instructors include (see detailed bios below):

Andrea Ferrero, professor at the University of Oxford
Jordi Galí (CREI, UPF and Barcelona GSE), a regular consultant to the European Central Bank, Norges Bank and Sveriges Bank
Domenico Giannone, research officer at the Federal Reserve of New York
José-Luis Peydró (ICREA-UPF and Barcelona GSE), consultant to the U.S. Federal Reserve, IMF, and Bank of Spain
Oreste Tristani, senior advisor to the European Central Bank

Course dates and registration

Next edition: TBA

Questions? Email the organizers

Key benefits

the differences between conventional and unconventional monetary policies
the rationale behind alternative unconventional tools, and the associated costs and benefits
the challenges faced by the Federal Reserve and the European Central Bank, and the resulting policy choices
the relationship between unconventional monetary policies and other macroeconomic reforms
the transmission mechanism of unconventional policies, and their impact on financial institutions
the effects of unconventional policies on financial assets, and aggregate economic variables
how financial traders respond to unconventional policies

After an introductory overview of the main approaches proposed in the literature to study conventional and unconventional policies, the course will describe the different policy tools adopted by central banks in the aftermath of the recent financial crisis. Special attention will be devoted to illustrate the costs and benefits of alternative policy measures, such as credit facilities, large-scale asset purchases, exchange-rate policies and money financed fiscal expenditure.

The course will also discuss the main empirical techniques, and the main results obtained in the literature about the effects of monetary policy on financial assets and aggregate economic variables, with a special attention to the practical experience of the Federal Reserve and the European Central Bank.

Schedule

Schedule for the previous edition of this course. Instructors, topics, and schedule are subject to change.

Day 1

Time	Session	Professor
08:30-09:00	Registration
09:00-11:00	Introduction to Unconventional Monetary Policies. Credibility and Forward Guidance	Davide Debortoli
Coffee break
11:30-13:30	The Uncoventional Monetary Policy Measures of the ECB	Oreste Tristani
Lunch
15:30-17:30	Monetary Policy, Credit, Capital Flows and Banks	José-Lluis Peydró
Welcome dinner

Day 2

Time	Session	Professor
9:00-11:00	Empirical Evidence on the Effects of Unconventional Policies - Part I	Domenico Giannone
Coffee break
11:30-13:00	Empirical Evidence on the Effects of Unconventional Policies - Part II	Domenico Giannone
Lunch
14:30-16:00	How do Traders React to Unconventional Policies?	Carlos Egea
Coffee break
16:30-18:00	Shocking Language: the Macroeconomic Effects of Central Bank Communication	Stephen Hansen

Day 3

Time	Session	Professor
9:00-11:00	The Unconventional Policies of the Fed - Part I	Andrea Ferrero
Coffee break
11:30-13:00	The Unconventional Policies of the Fed - Part II	Andrea Ferrero
Lunch
14:30-16:00	The Effects of a Money-Financed Fiscal Stimulus	Jordi Galí
End of course - handout of certificates

Participant profile

Economists and Researchers working at private and public research institutions, including research divisions at financial institutions, research departments in government agencies, national and international organizations and central banks.

Professionals at financial institutions (Commercial Banks, Investment Banks, Hedge Funds, Mutual Funds, Insurance Companies), especially those working on:

Investment / Portfolio management
Macroeconomic risk management
Trading and structuring of securities, especially interest rates and currency products
Public Finance

Accommodation

Please note that participation fees do not include accommodation expenses. Participants must make their own accommodation arrangements. Information and accommodation options are available on the accommodations page.