The recent liquidity crises has placed a spot light and greater scrutiny on short-term inter-bank lending operations, which to a large extent involve money market operations. The debt market, made up of the money market and the bond market, is an important element of the financial system. The usual description of the money market, however, is not adequate because this market is much more than the market for short-term marketable debt instruments.
The level of bank lending rates influences the demand for credit, and growth in the latter is the main driver of the growth rate in the money stock. This significant money creation role of the banks is played out in the money market. This course will discuss the workings of the international financial system and present the elements that make up the money market, with a focus on generally neglected areas such as the interbank market and money creation.
At the end of the course, the participants should be able to:
- Describe the importance of the money market in global financial transactions
- Define the significance of the debt market as an element of the financial system
- Distinguish money market from a bond market
- Calculate interest rates
- Discuss ways to strengthen the role of the interbank market and money creation
- Recognize the extent of the Central Bank's influence in a country's economy.
Content and Structure
This online course will cover the following modules:
- Module 1: Context: the Financial System
- Module 2: Overview of Money Market Operations
- Module 3: Interbank Market & Monetary Policy
- Module 4: Mathematics (of the Money Market)
- Module 5: Deposit and Debt Securities
- Module 6: Derivative Instruments
In order to ensure the best possible outreach, the course will be delivered through e-learning. Through a multiple-instructional setting, the goal is to achieve the learning objectives by means of learning technologies that match personal learning styles and by the inclusion of non-linear learning that aims at the development of just-in-time skills of adult learners. At the same time, in order to allow participants maximum flexibility of scheduling , the learning will be conducted in an asynchronous manner. Using a state-of-the-art training architecture, UNITAR will combine self-learning with assessments and online discussions. The pedagogy - adapted specifically to professionals in full-time work - will help train participants through various experiences: absorb (read); do (activity); interact (socialize); reflect (relate to one’s own reality).
The intended audience comprises persons involved in the financial sector (because money market interest rates are the basis of all financial markets), specifically:
- Private sector bankers
- Central bankers
- Members of securities exchanges
- Dealers in the financial sector (all markets)
- Financial market analysts