Frameworks for the Theoretical and Empirical Analysis of Monetary Policy

This thesis develops and applies three different frameworks to analyse monetary policy from a theoretical and empirical perspective within three self-contained chapters. Chapter 2 looks at optimal monetary policy in the modern micro-founded New Keynesian macroeconomic model, while chapter 3 offers an empirical investigation of monetary policy in the euro area. The final chapter 4 combines a microeconomic model of liquidity shocks on an asset market that includes features of market microstructure theory with a model of the goods market inspired by nominal rigidities as common in macroeconomic models. All three chapters are connected by the prominent role of different policy rules.