The course focuses on the interplay between monetary policy and developments in credit dynamics and intermediaries (banks and nonbanks) from both a microeconomic and a macroeconomic perspective. In particular, it analyses the impact of monetary policy on financial markets segments, the bank lending channel – with a focus on loans, lending rates and funding conditions – and more broadly the transmission of monetary policy via banks, including the interaction with microprudential and macroprudential policies.
During this course, you will take part in lectures and exercises that use both macroeconometric techniques and also microeconometric techniques.
After having completed this course, you will be able to:
Illustrate substitution across intermediaries such as investment funds, fintech, shadow banks, and security issuing;
Evaluate monetary policy (shocks, surprises, policy shifts), negative monetary policy rates, QE and other non-conventional policies;
Explain the mechanisms of bank credit supply;
Interpret the role of nonbanks, including shadow banks and fintech;
Define the interaction between monetary policy and prudential policies;
Assess some international spillovers of monetary policies.