Building analytical capacity, informing monetary and macroprudential policy, and strengthening policy frameworks in central banks in Middle Income Countries

Narrative

Research led by Prof. Agénor at the University of Manchester on the interactions between monetary and macroprudential policies since the global financial crisis (GFC), and the extent to which these policies should be combined to promote macroeconomic and financial stability in middle-income countries (MICs), has had a significant impact on central banks in these countries, and several international financial institutions, by:
• Building analytical capacity within central banking institutions in MICs and providing a better understanding of key aspects of the transmission mechanisms of monetary and macroprudential policies, and how these policies interact;
• Improving the operational macroeconomic models that several MIC central banks use for policy analysis and policy advice;
• Influencing the agenda of central banks and international institutions with respect to rethinking the design of macroeconomic policy frameworks, especially as it relates to institutional policy delegation and the combination of monetary and macroprudential policies with other short-term instruments of macroeconomic management.

Impact date	2013 → 2020
Category of impact	Economic impacts, Political impacts