Principles and construction of monetary policy rules: an application to the European Central Bank.

Summary This thesis analyzes how monetary policy rules can be applied to the European framework, now unique for all countries that have adopted the euro. The first part shows how they have evolved from being a tool for eliminating inflationary bias to being a guide for monetary policy in order to promote the transparency of independent central banks focused on price stability and what different forms of rules can be used for this purpose. In a second step, based on the work of John Taylor, the thesis determines the most efficient rule for the ECB. The association between the optimal rule and the preferences of the monetary authorities that is highlighted illustrates the greater transparency that reference to a rule would bring. The third part focuses on heterogeneity within the euro area and shows how it would weaken the single monetary policy if it were to be incorporated into the ECB's preferences.