Assessment of Monetary Policies of the European Central Bank since its inception: With the Monetary Pillar and the Taylor Rule

Details

Supervisors

RYCHALOVSKA, Yuliya

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [120] en sciences économiques, orientation générale

Abstract

This master’s thesis aims to investigate the assessment of monetary policies in our economy and how the Central Bank has reacted to different events. Before 1999, there was no global Central Bank in Europe. For this reason, a literature review of three different countries has been executed. This provides better understanding of the context in which the European Central Bank (ECB) has taken place. Through the use and a review of different formulas of the Taylor rule, deeper insight was gained into the contribution of this methodology to the analysis of monetary policies that have been used by the European Central Bank for the past 19 years. However, another method such the monetary pillars approach has also been included in this analysis. This analysis has contributed to an understanding of the role and the evolution of monetary policy in the Eurozone. In addition, it helped to understand if the Taylor is consistent to explain and evaluate European monetary policies.