OAFP 1010 - The Role of Central Banks in Meeting the Challenges of the 21st Century

This elective explores how central banks are adapting to the challenges of the 21st century. While their mandate to ensure financial and economic stability remains unchanged, their scope and tools have evolved to address issues such as climate change, technological risks, and financial innovation. The course will begin by reviewing the traditional role of central banks, including recent market interventions and participation in global summits. It will then examine how central banks are addressing emerging threats such as climate risks and financial tokenisation. Finally, it will focus on the adoption of technologies such as central bank digital currencies (CBDCs) and artificial intelligence (AI) and their potential to reshape the financial system.

Corentin DEREDEC,Tom VERRIER,Mickaël LALANNE

Enseignement électif

English

Students are expected to have read the required readings for each class and, where appropriate (e.g. for the ECB Gov. Council simulation), to have completed the pre-assignments.

Spring 2024-2025

1/3: An individual policy brief (one page) on a topic selected by each student from an assigned list; 1/3: A group report (five pages), prepared in teams of three, on a topic provided by the instructors; 1/3: Individual performance in the ECB Governing Council simulation, including a briefing note (context and key talking points) and participation in the simulation itself."

The 12 sessions will be taught by one of the associated lecturers. However, most of the sessions will have a guest speaker from the Banque de France in order to give a more concrete context to the topics discussed. In addition, one of the sessions (a priori session 4) will be a simulation of an ECB Governing Council and should take place at the Banque de France.