Inflation Targeting and Central Bank Communications

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About Course

This program examines the principles and practices of inflation targeting as a monetary policy framework, with particular emphasis on the critical role of central bank communication in achieving policy objectives. Participants will explore the theory and practice of inflation targeting, including the use of inflation targets, inflation forecasts, and verbal assessments as communication tools . The curriculum covers how central banks build credibility and transparency through consistent messaging, the relationship between communication and policy effectiveness, and methodologies for evaluating the clarity and consistency of central bank communications . Participants will analyze case studies from inflation-targeting countries and learn how to develop communication strategies that strengthen public understanding and trust in monetary policy . This program is ideal for central bank communications officers, policymakers, and economists involved in monetary policy formulation.

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Course Content

Module 1: Foundations of Money, Prices, and Inflation

  • Lesson 1: The Nature, Functions, and Historical Evolution of Money
  • Lesson 2: The Demand for Money – Theories and Determinants
  • Lesson 3: The Supply of Money – Central Bank Money, Commercial Bank Money, and the Money Multiplier
  • Lesson 4: The Money Market – Equilibrium and Interest Rate Determination
  • Lesson 5: Money, Inflation, and the Quantity Theory
  • Lesson 6: The Costs of Inflation – Economic Distortions, Uncertainty, and Redistribution
  • Lesson 7: Measuring Inflation – CPI, Core Inflation, and Alternative Indicators
  • Lesson 8: The Economic Costs of High and Volatile Inflation – Implications for Central Banking

Module 2: The Evolution of Monetary Policy Frameworks

Module 3: Inflation Targeting – Principles, Design, and Implementation

Module 4: Central Bank Independence and Accountability

Module 5: Monetary Policy Transmission and the Role of Expectations

Module 6: Central Bank Communication – Strategy, Tools, and Credibility

Module 7: Monetary Policy in Practice – Conventional and Unconventional Tools

Module 8: Inflation Dynamics, Supply Shocks, and Policy Trade-offs – Detailed Lessons

Module 9: The Interaction Between Monetary Policy and Financial Stability

Module 10: Contemporary Challenges and Future Trends in Inflation Targeting