From 4 July to 5 August 2011 UNITAR’s Public Finance and Trade Programme successfully conducted the e-Learning course on “Fundamentals of Central Banking and Monetary Policy”. The course combined self-study, mentored online discussions, and self-assessments with the aim of providing participants high quality training, knowledge sharing and networking in a flexible and cost-effective way.

Under the expert mentorship of Prof. Alexandre Faure, Foord Professor of Investments at Rhodes University (South Africa), the class of ten (10) senior and middle level officials from developing countries and economies in transition deepened their knowledge of managing the money and banking system, and discussed topics such as the central bank’s function of lender of last resort, money creation and the framework of monetary policy, and the dual role of the central bank of banker and advisor to Government.

On the whole, participants provided very positive feedback on the course, below is a comment from two course participants:

“I'd like to thank all of you because the course was very helpful for my everyday job, as well as the interactions of the participants. I wish you all the best!”- Ms. Nunziatina Cilia, Development Bank of Latin America (CAF)

“I wish to express my sincere thanks for all the information I learned from the course. The lessons will be a big help in my everyday work.” – Mr. Govani Valentin, Banking Sector, Seychelles

Because banks are in competition with one another their creditworthiness checks on customers are not always sober, making banks are inherently unstable. This means the public need an entity to monitor the banks and to curb excessive money creation: a central bank. Excessive money creation causes inflation and inflation management by the public (i.e. hedging) diverts attention away from productive behaviour; this is not conducive for economic output and welfare. Central banking is not just about monetary policy. It is also about being banker and advisor to government and managing the money and banking system. All the functions of the central bank are the major inputs into an ultimate objective: financial stability.

For more information about UNITAR e-Learning courses in the areas of public finance and trade, please visit: http://www.unitar.org/pft/event.