MONETARY THEORY

Author: GARCÍA IGLESIAS JESÚS MANUEL.
Year: 2003.
University: EXTREMADURA.
Place of defense: FACULTAD DE ESTUDIOS EMPRESARIALES Y TURISMO.
Place of preparation: FACULTAD ESTADOS EMPRESARIALES Y TURISMO.

Summary: This thesis has conducted an analysis of the evolution of strategies for monetary policy, starting in the 50's. It has shown the meaning and scope of monetary policy according to different schools of thought economic, reviewing how to understand the monetary transmission mechanism and the optimal implementation of the policy, referring to the monetary policy being in reality out by the central banks. It elaborates in detail in the design and analysis of monetary policy in accordance with the principles of the rules of interest rates, and explores the "inflation targeting" as a strategy that is being adopted in reality by central banks. With all this basis discusses the monetary policy strategy adopted by the European central bank, detecting from the contrast of various scenarios, what rule of behavior has continued this institution to determine interest rates.

Author: Veiga Fernández Luis Ángel.
Year: 2004.
University: A CORUÑA.
Place of defense: Facultad de Ciencias Económicas y Empresariales.
Place of preparation: Facultad de Ciencias Económicas y Empresariales.

Summary: The objectives of the doctoral thesis focused on the analysis of the monetary policy strategy of the European Central Bank. It examines the extent to which the decision criteria of the ECB's monetary policy before and after the same could affect the Spanish economy, in particular the evolution of prices and interest rates. In light of the process of integration of Spain into the European Union, the creation of monetary union, the European Central Bank (ECB) and the single currency, is studying how such a process constituted a framework capable of inducing economic reforms definitorias a stable macroeconomic framework. The ECB monetary policy geared to price stability. It looks, then, how this process had favorable results for the Spanish economy while was an impetus for the decision-making of economic policy (in particular poítica monetary) aimed at this objective. The evolution of prices and interest rates were analyzed by dividing the area into two time periods: the first runs from 1990 to 1998 and the second from 1999 to 2004. It was in 1999 when he began exercising exclusive monetary policy followed by the ECB from January 1999 to 2004, with the aim of obtaining some conclusions regarding the adequacy of a single monetary policy in an environment of structurally different economies. The work is structured as follows: The central thesis of the work is progressing in the introduction as well as the outlines of the remaining chapters. In Chapter 2 deals with deep price stability cocmo objective of a central bank, and in particular the European Central Bank, in line followed in recent decades by the central banks of the major economies. Chapter 3 is devoted to the study of the monetary policy strategy of the ECB, both from the point of the same as descriptive analysis of the implementation of this policy, in use of its independence, carried out by the European Monetary Institution. The fourth chapter deals with the empirical work with the use of econometric techniques appropriate in order to prove the central thesis of research work and be able to get the main conclusioines which are summarized in chapter five. Chapter five goes to the main findings. The most important Reference to make a favorable impact on the Spanish economy resulting from the process of creation of the monetary union and the single currency. In turn, adding that the poítica moentaria ECB, as a poítica monetary oriented Union as a whole, failed to eliminate the inflation differential with respect to the Spanish Union average. It adds the extensive bibliography and used an annex with key data object of empirical analysis.

Author: LÓPEZ PÉREZ VÍCTOR.
Year: 2004.
University: COMPLUTENSE DE MADRID.
Place of defense: FACULTAD DE CIENCIAS ECONOMICAS Y EMPRESARIALES.
Place of preparation: FACULTAD DE CIENCIAS ECONÓMICAS Y EMPRESARIALES..

Summary: This dissertation examines the effects of the decisions of monetary policy strategy from the viewpoint of a central bank which seeks to stabilize the path temporary key macroeconomic variables. The first chapter of this thesis examines the implementation of monetary policy in Spain during the period 1984-1998 with information in real time. The main conclusion of it is that, from 1988 to 1998, the behavior of the Bank of Spain can bring through a simple rule of interest rates, similar to the Taylor rule. The second chapter examines one of the relevant factors in making monetary policy decisions: the persistence of inflation. This produces the best monetary policy decisions pose a greater reaction nominal interest rate of inflation expected when the degree of persistence of inflation increases. This is because the monetary authority has to counteract the effect of expected inflation on the brecah product, which increases with the degree of persistence in the rate of inflation. The third chapter discusses the implications of the existence of a lower limit on interest rates for the choice of inflation target of the central bank. It obtine the probability that the restriction of not negarividad on nominal interest rates is growing rapidly for active targets inflation below 1 percent. In addition, the simple model that is used in this chapter means that the inflation target that maximizes expected utility of the agent is representative of 2 percent. Finally, the fourth chapter discusses why central banks behave in a manner that generates persistence in nominal interest rates. This study shows that a certain degree of inertia in the interest rate increases welfare waited agent representative. Moreover, the optimal degree of inertia is quite high. Finally, inertia that allows the central banker impose a more ambitious inflation target, because the probability that the interest rate reaches its lower limit decreases.

Author: HERNANDO CASTELLET IGNACIO.
Year: 2004.
University: NACIONAL DE EDUCACIÓN A DISTANCIA.
Place of defense: CIENCIAS ECONÓMICAS Y EMPRESARIALES.
Place of preparation: FACULTAD DE CIENCIAS ECONÓMICAS Y EMPRESARIALES.

Summary: This thesis provides an analysis of the transmission mechanism of monetary policy with a microeconomic perspective. It contains three contributions in which the availability of databases individuales-de consumer prices of non-financial businesses and entities bancarias- enhances our knowledge about various aspects of the economy - the process of formation of consumer prices, the role of the position fmanciera of companies in its decision-making process and the actual behavior of the supply of bank credit in response to disturbance monetarias- that have a direct bearing on the mechanism of transmission. He then outlined the content of each of these three contributions. The chap. 2 provides an exhaustive characters of the dynamics of consumer prices in the Spanish economy, using for this purpose a database with a broad product coverage and a sufficiently long time horizon. First, it míde the frequency with which they occur price changes and the average size of contracts, which are key to determining the extent of incercia nominal economy. In addition, comparison of the frequency increases and decreases in prices allows conclusions to be drawn about the importance of rigidity to the downward pressure on prices. Secondly, it explores the degree of heterogeneity among products in the patterns of adjusting prices. Finally, it deals with the study of the effect of different factors (seasonality, the level of inflation, tax changes ,...) in the process of price formation so as to get some evidence on the importance of pricing rules dependent time-dependent and state. The chap. 3 examines the potential effects that changes in the financial situation of companies have on their investment decisions and employment presents evidence favorable to the hypothesis that the response of business to financial turmoil depends on your financial situation of departure. This chapter presents two main contributions. First, it evaluates whether the impact on the financial position of business decisions is not linear, contrastándose if this impact is relatively more intense when the pressure fmanciera exceeds a certain critical threshold. Secondly, from the estimated effects of the various financial variables on the real decisions were constructed synthetic indicators that summarize the impact of financial decisions on each of the real variables consderadas. The chap. 4 presents a contrast of the existence of the canal bank loan using two alternative approaches to solving the problem of identification. On the one hand, discusses the differences between banks in the sensisbilidad the response of various components of credit before monetary policy measures, and secondly, he examines the response of credit to changes in the tax treatment of mutual funds that, as discussed at length in this chapter, may be viewed as a disruption exogenous on bank deposits that, in principle, should not affect the demand for credit. This second approach is a completely original contribution to solving the problem of identifying common in the literature on cnaal of bank credit. Another key element of this work is that the contrast is accomplished with a very comprehensive credit, which is almost equal to the population of Spanish credit institutions, which allows draw general conclusions for the whole of the Spanish banking system.

Author: MENNER MARTIN.
Year: 2004.
University: POMPEU FABRA.
Place of defense: DEPARTAMENTO DE ECONOMÍA Y EMPRESA.
Place of preparation: DEPARTAMENTO DE ECONOMÍA Y EMPRESA.

Summary: Part IEn the first chapter investigates the robustness of the mechanism of propagation monetary proposed by Shiyoung Shi (JET, 1998) in a general equilibrium model search in the property market where the use of money is motivated by the lack of double coincidence of wishes in bilateral exchanges. A calibration of the model parameters at intervals confirming the robustness of this mechanism. In addition he examines the role of non-standard assumptions in such a mechanism. By comparison pairs of variants of the so only changes a course at the same time it is shown that the assumptions of a single search friction in the market for goods and the ability to store part of final goods producers are required for a substantial and persistent spread of monetary disturbances. The course search in the labor market adds only that the reaction of employment is in the form of giba and it is something more persistent. The second chapter introduces the accumulation of capital to the model search. It investigates the mecan-ismo spreading result, especially the interaction between the search mechanism and the spread of capital accumulation. If there are no capital costs of installing the machinery feedback search is not available, while installation costs with the two intermediate mechanisms operating at the same time. The response of employment is very similar to the response with fixed capital and the response of the product is more pronounced although shorter. Storage of final goods is still necessary for a positive response employment monetary impulses. Simulations of the model results in variances and covariances compatible with those found in the data from the USA. Part II (Co-Autor: Hugo Rodriguez Mendizábal) built a dynamic general equilibrium model that explicitly specifies the implementation of monetary policy of a central bank and discuss the implications for the identification of per-turbaciones currency. The central bank controls the level of reserves through open-market operations with the objective of maintaining the operating interest rate at a particular level on average. The interest rate is determined later in the period depending on supply and demand for stocks. Changes in reserves not anticipated by the market are interpreted as currency turmoil and disruption can result in fundamental change unexpectedly supply and demand reser-vas or shocks that have not been accommodated by the central bank (shock of monetary policy) . We show that these shocks have the usual effects to economic activity without imposing additional friction in a restriction of "cash-in-advance." In the model correlations between contemporary interest rates, and product prices are due to the simultaneous effects of shock. We show an example to those correlations can be confused with a ruler Taylor. In addition, we use the signs of the impact of model answers to identify clashes in the data.

Author: Secchi Alessandro.
Year: 2004.
University: POMPEU FABRA.
Place of defense: Departamento de Economía y Empresa.
Place of preparation: Departamento de Economía y Empresa.

Summary: The aim of the thesis is the study of the mechanisms of spread of monetary policy to the real economy, and in particular provide an empirical evidence in favor of the course is based on the fact that companies with different characteristics can react to changes for monetary policy forms heterogeneous. The introduction reveals the existence of significant differences in the structures of balance manufacturing companies of different sizes and different European countries and the ways in which these structures are modified as a result of fluctuations in economic activity. The second chapter examines how different structures balance could be the result of different responses of business to changes in monetary policy. In particular this chapter provides ample evidence of the existence of a mechanism propagacíon of monetary policy, known as "cost-channel", which is based on the idea that interest expense affecting the marginal costs of the company . Second this channel of transmission, changes in interest rates affect the cost of existing businesses and, consequently, the cost of sale of the final product. Through this mechanism, it is possible to explain the size of the real effects of monetary policy and at the same time, evidence that in the short term, a rise in interest rates has a positive effect plenty prices (the "price puzzle"). The results of this chapter have been obtained using a database that includes information on individual sales prices and interest rates paid on the debt by 2000 companies Italian over 14 years. In most studies examining the effects of heterogeneous monetary policy on the productive sector it is assumed that the responses of firms depend on their dimensions. Therefore these studies begin divididendo companies into two groups (small and large) and, secondly, find out whether there are differences in the reactions average of the two groups to changes in interest rates. In this work the existence of only two groups of companies, as well as the decision on the cut-off point between small and large, is made in an arbitrary manner. Therefore in the third chapter using new econometric tools that allow to determine endogenously the number of enterprise groups, the cut points of the groups and whether the definitions of commonly used size (for example, number of employees, product or the level of capital) are effectively equivalent on gaining a measure of the effects of heterogeneous monetary policy. The most important results are emerging that the optimal number of clusters is always greater than two, that the different definitions of size analyzed at work lead to very different results and, finally, in many cases non-existent monotonicidad between the size and impact of monetary policy.

Author: MOLNAR KRISZTINA.
Year: 2005.
University: POMPEU FABRA.
Place of defense: DEPARTAMENTO DE ECONOMÍA Y EMPRESA.
Place of preparation: UNIVERSIDAD POMPEU FABRA.

Summary: My thesis is based on the results of least squares learning, that individual agents as econometric models: the agents operate as regressions, using available data to form their expectations. In the first chapter of my thesis shows that the presence of major learning in an economy can rationalize even in coexistence with the players sound. In the second chapter, I look at what is the implication on monetary policy best when private agents still learning to least squares learning. This chapter shows that monetary policy under optimal learning introduces some new features in the conduct of politics that are not present when private agents have rational expectations.