Financial Programming and Policies, Part 2: Program Design from edX

In this macroeconomics course, you will improve your skills in macroeconomic policy analysis and learn to design an economic and financial program, using real economic data. The financial programming exercise simulates what IMF (International Monetary Fund) desk economists routinely do in their country surveillance and program work.

In the first part of the course (modules 1–7), you will analyze the economic outlook of a country case and then help to build a baseline scenario — namely, a set of projections for the main macroeconomic sectors (real, external, government and monetary) that reflects the analyst’s best guess of what will happen to the economy in the coming year, assuming no policy change.

In the second part (modules 8–10), you will learn and discuss how macroeconomic policies can be used to address poor performance and reduce macroeconomic imbalances. We will illustrate the workings of monetary, fiscal and exchange rate policies by using a simple Keynesian model of an open economy. In the final module you will design an IMF–supported lending program scenario for our country case.

Financial Programming and Policies, Part 2 is offered by the IMF with financial support from the Government of Japan.

What you'll learn

How to construct projections of the real, external, government, and monetary sectors under the assumption of unchanged policy
How to generate sectoral forecasts that are consistent from accounting and behavioral perspectives
How to use a macroeconomic model to analyze the effects of policy changes
How to identify and appraise the economic vulnerabilities inherent in an emerging market economy
How to prepare a macroeconomic policy program scenario

What's inside

Learning objectives

How to construct projections of the real, external, government, and monetary sectors under the assumption of unchanged policy
How to generate sectoral forecasts that are consistent from accounting and behavioral perspectives
How to use a macroeconomic model to analyze the effects of policy changes

How to identify and appraise the economic vulnerabilities inherent in an emerging market economy
How to prepare a macroeconomic policy program scenario

How to construct projections of the real, external, government, and monetary sectors under the assumption of unchanged policy
How to generate sectoral forecasts that are consistent from accounting and behavioral perspectives
How to use a macroeconomic model to analyze the effects of policy changes
How to identify and appraise the economic vulnerabilities inherent in an emerging market economy
How to prepare a macroeconomic policy program scenario

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Geared towards students whose interests lie in economics

Develops skills in macroeconomic policy analysis, crucial for economists

Taught by Francesco Luna, Adina Popescu, Antonio David, Alfredo Baldini, and Evan Tanner, experts in economics

Examines relevant economic vulnerabilities inherent in emerging market economies

Provides hands-on experience in preparing macroeconomic policy program scenarios

Supported by the International Monetary Fund (IMF)

Reviews summary

Designing financial programs and policies

According to learners, this course offers a valuable deep dive into macroeconomic policy analysis and the design of financial programs, simulating the work done at institutions like the IMF. Students particularly appreciate the focus on building realistic program scenarios and applying theoretical knowledge to real-world data. The course is seen as a strong continuation of Part 1, providing practical tools for economic forecasting and policy assessment. While the material is considered rigorous and challenging, especially the financial programming exercise, many reviewers found it highly rewarding and a must-take for those interested in this specific field.

Material is demanding and requires solid background.

"The course is challenging but extremely informative. Be prepared to dedicate significant time."

"This is a rigorous course, especially the financial programming assignment which requires careful attention to detail."

"Requires a strong understanding of macroeconomics and financial concepts from Part 1 or equivalent."

"Some sections were quite complex, requiring review of external materials for full understanding."

Builds well on concepts from the first part.

"This course is an excellent follow-up to Part 1, deepening the practical application of the baseline scenario."

"Seamless continuation from the first course. It makes much more sense after completing Part 1."

"It's essential to take Part 1 first as this course assumes prior knowledge."

"The policy analysis and program design build directly on the forecasting skills learned previously."

Focuses on practical program design and data analysis.

"This course is very practical. The part about building financial programming and policy in excelsheet was very useful."

"The financial programming exercise simulates what IMF economists do. This practical aspect was invaluable."

"I learned to construct projections and analyze policy effects using actual economic data."

"It provided me with hands-on experience in designing a macroeconomic policy program scenario."

Teaches policy analysis using an IMF-like approach.

"It is a very good course. The course provides an applied framework based on IMF methodologies which is very relevant to policy making."

"Highly recommended for those wanting to understand IMF program design and financial programming framework."

"The course content is well-structured and provides an excellent understanding of the framework used in financial programming and policy formulation in an IMF context."

"I appreciate the opportunity to learn the exact framework used by the IMF in its programs."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Financial Programming and Policies, Part 2: Program Design with these activities:

Review fundamental concepts in algebra and calculus

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Refresh your understanding of algebra and calculus as foundational mathematical tools used extensively in macroeconomic analysis.

Browse courses on Algebra

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Review notes or textbooks from previous coursework
Practice solving equations and inequalities
Review basic calculus concepts like differentiation and integration

Review: International Economics by Paul Krugman and Maurice Obstfeld

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Supplement the course material by reading a classic textbook on international economics, providing a deeper understanding of the global economic landscape.

View International Finance: Theory and Policy,... on Amazon

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Read the designated chapters
Take notes and highlight key concepts
Discuss the readings with classmates or the instructor

Follow tutorials on time series analysis in R or Python

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Develop practical skills in time series analysis, a crucial technique for analyzing macroeconomic data, through guided tutorials.

Browse courses on Time Series Analysis

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Identify reputable online tutorials or courses on time series analysis
Choose a programming language (R or Python) and follow the tutorials
Practice analyzing time series data using the techniques learned

Four other activities

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Engage in peer-led discussion groups

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Collaborate with peers to discuss course concepts, exchange perspectives, and reinforce understanding through peer-to-peer learning.

Browse courses on Macroeconomic Analysis

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Form study groups with classmates
Choose topics for discussion based on the course material
Prepare and present summaries or lead discussions
Engage in active listening and respectful dialogue

Practice macroeconomic modeling through online simulations

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Practice using macroeconomic models to analyze economic data and forecast economic outcomes, reinforcing the key concepts of the course.

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Identify a reputable online simulation platform
Select a model that aligns with the course material
Input data and adjust parameters as guided by the course content
Run simulations and analyze the results
Compare your findings with the course material and refine your understanding

Contribute to macroeconomic open-source projects on GitHub

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Enhance your practical skills and contribute to the macroeconomic community by working on open-source projects related to macroeconomic modeling.

Browse courses on Open Source

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Identify macroeconomic open-source projects on GitHub
Choose a project and review its documentation
Identify areas where you can contribute and submit pull requests
Collaborate with other contributors and maintainers

Develop a macroeconomic policy brief

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Apply the knowledge gained in the course to create a comprehensive policy brief that addresses a specific macroeconomic issue, demonstrating a deep understanding of the material.

Browse courses on Fiscal Policy

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Identify a pressing macroeconomic issue
Research and analyze relevant data and literature
Develop policy recommendations based on the course concepts
Draft and refine the policy brief, ensuring clarity and persuasiveness
Present your brief to a peer group or instructor for feedback

Career center

Learners who complete Financial Programming and Policies, Part 2: Program Design will develop knowledge and skills that may be useful to these careers:

Economist

Economists analyze and interpret economic data and trends to advise organizations and governments on economic policy and financial planning. They use economic models to forecast future economic conditions and develop strategies to address economic challenges. The Financial Programming and Policies course from the IMF would provide you with a strong foundation in macroeconomic analysis and policy design. It would help you develop the skills and knowledge necessary to succeed in this role.

See salaries and explore the career path for Economist

Financial Analyst

Financial analysts provide advice to individuals and organizations on investment decisions. They analyze financial data and make recommendations on how to allocate funds. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of financial markets and investment strategies.

See salaries and explore the career path for Financial Analyst

International Economist

International economists analyze and interpret economic data and trends in different countries and regions. They advise governments and organizations on international economic policy and trade. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of international economics and trade policy.

See salaries and explore the career path for International Economist

Monetary Economist

Monetary economists analyze and interpret economic data and trends related to monetary policy. They advise governments and central banks on how to manage the money supply and interest rates. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of monetary policy and its impact on the economy.

See salaries and explore the career path for Monetary Economist

Public Policy Analyst

Public policy analysts analyze and interpret economic and social data to advise governments on public policy. They develop and evaluate policies to address social and economic issues. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of public policy and its impact on society.

See salaries and explore the career path for Public Policy Analyst

Quantitative Analyst

Quantitative analysts use mathematical and statistical techniques to analyze and interpret data. They develop and implement models to solve business problems and make predictions. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong foundation in mathematics and statistics.

See salaries and explore the career path for Quantitative Analyst

Risk Analyst

Risk analysts identify and assess risks to organizations. They develop and implement strategies to mitigate risks and protect organizations from financial losses. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of risk management and financial analysis.

See salaries and explore the career path for Risk Analyst

Financial Planner

Financial planners provide advice to individuals and families on financial planning and investment strategies. They help clients achieve their financial goals and plan for the future. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of financial planning and investment strategies.

See salaries and explore the career path for Financial Planner

Investment Banker

Investment bankers provide advice to corporations and governments on mergers and acquisitions, capital raising, and other financial transactions. They help clients achieve their financial goals and raise capital. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of financial markets and investment banking.

See salaries and explore the career path for Investment Banker

Private Equity Analyst

Private equity analysts analyze and invest in private companies. They help companies grow and expand their businesses. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of private equity and investment analysis.

See salaries and explore the career path for Private Equity Analyst

Venture Capitalist

Venture capitalists provide funding and support to early-stage companies with high growth potential. They help companies develop their products and services and bring them to market. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of venture capital and investment analysis.

See salaries and explore the career path for Venture Capitalist

Portfolio Manager

Portfolio managers manage and invest portfolios of securities for individuals and institutions. They make investment decisions and allocate assets to achieve specific financial goals. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of portfolio management and investment strategies.

See salaries and explore the career path for Portfolio Manager

Economic Consultant

Economic consultants provide advice to businesses and governments on economic issues. They analyze data, develop models, and make recommendations on how to improve economic performance. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of economic analysis and policy development.

See salaries and explore the career path for Economic Consultant

Budget Analyst

Budget analysts analyze and interpret financial data to develop and manage budgets. They help organizations allocate resources and make informed financial decisions. The Financial Programming and Policies course would provide you with the skills and knowledge necessary to succeed in this role. It would help you develop a strong understanding of budget analysis and financial management.

See salaries and explore the career path for Budget Analyst

Financial Advisor

Financial advisors provide advice to individuals and families on financial planning and investment strategies. They help clients achieve their financial goals and plan for the future. The Financial Programming and Policies course may be useful for this role. It would help you develop a strong understanding of financial planning and investment strategies.

See salaries and explore the career path for Financial Advisor