Economics &
Monetary Policy for the Markets

This two day course covers all aspects of macro economics in relation to the global financial markets. By examining how economic fundamentals and monetary policy impact on financial assets such as equities, bonds and currencies, delegates will gain a better understanding of how to interpret economic news and anticipate market reaction. The course also explores how central bank policy has changed since the financial crisis and the implications for asset prices going forward.

TBC
Duration: Two days (9.00am to 5.00pm)
Location: The Tower Hotel – London E1, UK
Trainer: Tony Norfield
Course fee: £1790 + VAT – Register online

Course Outline

Introduction

+ World economic trends
+ Stagnation, growth, imbalances
+ Debt and deficits
+ Trump, Brexit, etc: fiscal policy and a new populism?
+ How will central banks respond?

Economic Data, Market Prices & Policy

+ Growth, employment and inflation the key economic data
+ Financial market prices determined in a global market
+ Money markets, FX, bonds and equities
+ International links, flows, balances
+ Economic policy also influenced by global trends

Inflation and Monetary Policy

+ Inflation as the principal central bank policy target
+ Is inflation a problem?
+ Inflation trends
+ Money supply and inflation
+ Inflation and asset prices
+ Nominal and real interest rates

The International Dimension

+ Analysing the balance of payments
+ International flows of funds
+ Central banks and exchange rate policy
+ Key drivers of FX rates
+ Hedging, positioning and FX market moves
+ Size and structure of FX market

Fiscal Policy and Government Debt

+ Financing the public sector
+ Deficits and the business cycle
+ Do deficits matter?
+ Government debt and growth
+ Fiscal policy and interest rates
+ Current fiscal policy issues

Monetary Policy & Central Banks

+ Definitions of money supply
+ Banks and money creation
+ Bank leverage ratios
+ Money, credit, and money supply growth
+ Velocity of money circulation in decline?
+ Central bank targets and instruments
+ Policy regimes
+ The Taylor Rule
+ Inflation targeting
+ Policy transmission mechanism
+ Market expectations for policy changes

Monetary Policy in the Wake of the Financial Crisis

+ Rewriting the central bank rule book
+ Central bank policy innovations since 2008
+ Overview of Quantitative Easing policies
+ Major central banks - the US Fed, ECB, Bank of England, Bank of Japan
+ Other central banks - Switzerland, Australia, Canada
+ Problems with QE policies - negative interest rates & debts
+ Asset price inflation, pension fund deficits, money market problems
+ What happens to the accumulated central bank 'assets'?

Economic Indicators for Central Bank Policy

+ Key US economic indicators
+ Key European economic indicators
+ Other important national and international data

What Next?

+ Political pressures on economic policy
+ 'Financial stability' and new policy measures
+ Debt accumulation in major countries and regions
+ Return to 'normal' or a new crisis development?
+ Will fiscal policy no longer take a back seat to monetary policy?
+ What scope for left monetary and fiscal policy?