Efectes reals de la política monetària

Project Details


This project intends to spell out the procedure by which monetary policy is conducted in actual economies and to describe this procedure in a stochastic dynamic general equilibrium model. Such a model will allow to study several practical issues that are useful in order to evaluate the policy of central banks like the European Central Bank, the Federal Reserve of the USA, and the monetary policies conductes by more heterodox governments which use currency printing as a source of inflationary revenues aimed at financing public spending. The first issue will be the analysis of the effects derived from monetary shocks, defined as unexpected deviations of short-term rates and reserves rom their operating targets. Secondly, wee will study the effect of the rate of monetary expansion on the consumption distribution and on welfare in a context with tax evasion where inflation affects the incentives to be honest by taxpayers. Finally, we will study the relationship between monetary policy and the labor market in two particular aspects. On the one hand, we will analyze the role of occupational choice on the propagation of monetary shocks and, on the other hand, we will analyze under which conditions employment, growth rates and prices are decreasing in the interest rate, whereas real wages are increasing in the interest rate. This last analysis will be complemented with a test aimed at checking whether these conditions are empirically met by the different countries of the UE, US, Canada and Japan
Effective start/end date10/12/0319/11/06


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