Theses – Institute of Money and International Finance

Contents on this page

Bachelor Theses
Are macroeconomic expectations consistent with theoretical relationships in macro models?
Master Theses
Contact for general questions regarding theses

Bachelor Theses

Centralized Application Procedure

All students, who want to write their bachelor theses in economics and management, have to use the centralized application procedure, offered by the dean’s office. The procedure is usually taking place in the beginning of each year. More informations can be found on the faculty’s website.

After beeing allocated to our institute

If you have been allocated to the Institute of Money and International Finance, you can choose a topic for your bachelor thesis and your preferred starting point.

You can find a list of available topics on this website. Of course, you are very welcomed to suggest an own topic. The only requirement is a connection to monetary policy and/or financial markets.

To register for your bachelor thesis (topic and starting point), please use the contact form (link can be found underneath the topic list) and send it at least 14 days before your chosen date. There you can state two preferred topics. In good time before your respective registration date, we will contact you by email to officially register the work.

When you have completed your work, please send it in digital form to sekretariat@gif.uni-hannover.de and submit a double-sided, single stapled paper version of the work to us. You can either hand this in at the Institute on Wednesdays or at the gatekeeper of the Conti-Campus at any time with the request that it be placed in the mailbox of Prof Dräger/ Institute of Monetary and International Finance.

Possible registration points for your bachelor thesis

Summer Term

March 1st, April 15th and June 1st

Winter Term

September 1st, October 15th and November 1st

Topics regarding optimal monetary policy and monetary policy instruments

Conventional and unconventional monetary policy in the New Keynesian DSGE (dynamic stochastic general equilibrium) model

Gali, J., 2008. Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework. Princeton University Press

Harrison, R., 2012. Asset Purchase Policy at the Effective Lower Bound for Interest Rates. Working Paper 444, Bank of England
Central bank communication: Available instruments and their effect on asset prices

Blinder, A. S.; Ehrmann, M.; Fratzscher, M.; De Haan, J. und Jansen, D.-J., 2008. Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence. Journal of Economic Literature, 46(4), 910-945

Ehrmann, M. und Fratzscher, M., 2007. Communication by Central Bank Committee Members: Different Strategies, Same Effectiveness? Journal of Money, Credit, and Banking, 39(2–3), 509–41

Gürkaynak, R. S.; Sack, B. und Swanson, E.T., 2005. Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements. International Journal of Central Banking, 1(1), 55–93
Should monetary policy prevent speculative bubbles?

Bean, C. R., 2004. Asset Bubbles and the Macroeconomy. American Economic Association Papers and Proceedings, 94(2), 14-18

De Grauwe, P., 2008. Should Central Banks Target Stock Prices?. Intereconomics, September/October, 256-258

Roubini, N., 2006. Why Central Banks Should Burst Bubbles. International Finance, 9(1), 87-107

Posen, A. S., 2006. Why Central Banks Should Not Burst Bubbles, Commentary. International Finance, 9(1), 109-124
The role of the central bank as manager of preceived risk and uncertainty

Bordo, M. D. und Wheelock, D. C., 2010. The Promise and Performance of the Federal Reserve as Lender of Last Resort 1914-1933, Federal Reserve Bank of St. Louis Working Paper 2010-036A

Caballero, R. J. und Krishnamurthy, A., 2006. Flight to Quality and Collective Risk Management. NBER Working Paper 12136

Campbell, J., Ferroni, F., Fisher, J. und Melosi, L., 2019. The Limits of Forward Guidance. Journal of Monetary Economics, 108(C), 118-134
Should the banking sector be regulated to avoid instability on financial markets? The role of macroprudential regulation

Borio, C., 2008. The Financial Turmoil of 2007-? A Preliminary Assessment and Some Policy Considerations. BIS Working Paper 251

Benston, G. J. und Kaufman, G. G., 1996. The Appropriate Role of Bank Regulation. The Economic Journal, 106(436), 688-697

Jean-Charles Rochet, 2008. Why are there so many banking crises? The politics and policy of bank regulation. Princeton, New Jersey: Princeton University Press

Davis, E. P. and Karim, D., 2010. Macroprudential Regulation – the Missing Policy Pillar. National Institute Economic Review No. 211
Monetary policy in the U.S. during the Great Depression: Was it appropriate or responsible for bank runs and panics?

Wheelock, D.C., 1992. Monetary Policy in the Great Depression: What the Fed Did, and Why. Federal Reserve Bank of St. Louis Review, March, 3-28

Bordo, M. D. und Wheelock, D. C., 2011. The Promise and Performance of the Federal Reserve as Lender of Last Resort 1914-1933. Federal Reserve Bank of St. Louis Working Paper 2010-036B

Topics regarding macroeconomic expectations

What factors influence the formation of household inflation expectations?

Binder, C., 2020. Coronavirus Fears and Macroeconomic Expectations. The Review of Economics and Statistics, 102(4), 721–730

D’Acunto, F., Malmendier, U. und Weber, M., 2022. What do the data tell us about inflation expectations? CESifo Working Paper No. 9602

Fritzer, F. und Rumler F., 2015. Determinants of inflation perceptions and expectations: An empirical analysis for Austria. Monetary Policy and the Economy. Oesterreichische Nationalbank, 1, 11-26

Lamla, M. und Lein, S., 2014. The Role of Media for Consumers’ Inflation Expectation Formation. Journal of Economic Behavior & Organization, 106(C), 62-77
Which model bests describes the formation of household inflation expectations?

Coibion, O. und Gorodnichenko, Y., 2012. What Can Survey Forecasts Tell Us about Information Rigidities? Journal of Political Economy, 120(1), 116-159

Coibion, O. und Gorodnichenko, Y., 2015. Information Rigidity and the Expectations Formation Process: A Simple Framework and New Facts. American Economic Review, 105(8), 2644-78

Dräger, L. und Lamla, M.J., 2017. Imperfect Information and Inflation Expectations: Evidence from Microdata. Oxford Bulletin of Economics & Statistics, 79(6), 933-968

Malmendier, U. und Nagel, S., 2016. Learning from inflation experiences. Quarterly Journal of Economics, 131(1), 53-87
Anchoring of inflation expectations

Dräger, L. und Lamla, M.J., 2018. Is the Anchoring of Consumers´ Inflation Expectations Shaped by Experience? CESifo Working Paper No. 7042

Gürkaynak, R., Levin A. und Swanson, E., 2010. Does inflation targeting anchor long-run inflation expectations? Evidence from long-term bond yields in the U.S., U.K. and Sweden. Journal of the European Economic Association, 8(6), 1208-1242

Kumar, S., Afrouzi H., Coibion O. und Gorodnichenko, Y., 2015. Inflation targeting does not anchor inflation expectations: Evidence from firms in New Zealand. Brookings Papers on Economic Activity, 46(2), 151-225
Are macroeconomic expectations consistent with theoretical relationships in macro models?

Coibion, O. und Gorodnichenko Y., 2015. Is the Phillips curve alive and well after all? Inflation expectations and the missing disinflation. American Economic Journal: Macroeconomics, 7(1), 197-232

Dräger, L., Lamla, M.J. und Pfajfar, D., 2016. Are Survey Expectations Theory-Consistent? The Role of Central Bank Communication and News. European Economic Review, 85, 84-111

Dräger, L. und Nghiem, G., 2021. Are Consumers‘ Spending Decisions in Line With an Euler Equation? The Review of Economics and Statistics, 103(3), 580-596

Topics regarding monetary policy during the Great Recession and the European Sovereign Debt Crisis

The monetary policy transmission mechanism at the tero lower bound: How are financial markets and the real economy influenced by unconventional monetary policy instruments?

Gambacorta, L.; Hofmann, B. und Peersman, G.,2014. The effectiveness of unconventional monetary policy at the zero lower bound: A cross-country analysis. Journal of Money, Credit and Banking, 46(4), 615-642

Joyce, M.; Miles, D.; Scott, A. und Vayanos, D., 2012. Quantitative easing and unconventional monetary policy – an introduction. The Economic Journal, 122(564), F271-F288
Unconventional monetary policy after the Financial Crisis - A discussion of quantitative easing

Claeys, G. und Leandro, Á., 2016. The European Central Bank's quantitative easing programme: Limits and risks. Bruegel Policy Contribution, 4

Gambacorta, L., Hofmann, B. und Peersman, G., 2014. The effectiveness of unconventional monetary policy at the zero lower bound: A cross-country analysis. Journal of Money, Credit and Banking, 46(4), 615-642

Joyce, M.; Miles, D.; Scott, A., und Vayanos, D., 2012. Quantitative easing and unconventional monetary policy – an introduction. The Economic Journal, 122(564), F271-F2

Kuttner, K. N., 2018. Outside of the Box: Unconventional Monetary Policy in the Great Recession and Beyond. Journal of Economic Perspectives 32 (4), 121-146
Challenges and opportunities with the end of unconventional monetary policies - Exit strategies to return to conventional monetary policy instruments and to reduce central bank balance sheets

Horvath, R., 2017. What should the ECB “new normal” look like?. Economic and Monetary Affairs. Monetary Dialogue

Blinder, A. S., 2010. Quantitative easing: entrance and exit strategies. Federal Reserve Bank of St. Louis Review, 92(6), 465-479

Topics regarding exchange rate regimes

The Financial Trilemma – A discussion using the example of the fixed exchange rate in China

Schoenmaker, D., 2011. The financial trilemma. Economics Letters, 111, 57-59

Aizenman, J. und Sengupta, R., 2013. Financial Trilemma in China and a Comparative Analysis with India. Pacific Economic Review, 18(2), 123-146

Frankel, J., 2006. On the Yuan: The Choice between Adjustment under a Fixed Exchange Rate and Adjustment under a Flexible Rate. CESifo Economic Studies, 52, 2/2006, 246-275
Optimal exchange rate regimes for Emerging Economies

Chang, R. und Velasco, A., 2000. Exchange-Rate Policy for Developing Countries. American Economic Association Papers and Proceedings, 90(2), 71- 75

Coudert, V. und Couharde. C., 2009. Currency Misalignments and Exchange Rate Regimes in Emerging and Developing Countries. Review of International Economics, 17(1), 121-136
Speculative attacks: Theory and discussion for the case of Mexico, Argentina or the ERM Crisis

Caves, R. E.; Frankel, J. A. und Jones, R. W., 2006. World Trade and Payments – An Introduction. Pearson (10. Ausg.)

Goldberg, L. S., 1994. Predicting exchange rate crises – Mexico revisited. Journal of International Economics, 36, 413-430

Conolly, M., 1986. The Speculative Attack on the Peso and the Real Exchange Rate: Argentina, 1979-81. Journal of International Money and Finance, 5, S117-130

Bartolini, L. und Prati, A., 1999. Soft exchange rate bands and speculative attacks: theory, and evidence from the ERM since August 1993. Journal of International Economics, 49, 1-29

Topics regarding currency, sovereign debt and financial market crises

How do self-fulfilling sovereign debt crises occur and what are their effects? A discussion for the example of Mexico or the Euro Area

Reinhart, C. M. and Rogoff, K. S., 2009. This Time is Different – Eight Centuries of Financial Folly, Princeton University Press

De Grauwe, P. und Ji, C., 2013. Self-fulfilling Crises in the Eurozone: An Empirical Test, Journal of International Money and Finance, 34, 15-36

Cole, H. L. und Kehoe, T. J., 1996. A Self-fulfilling model of Mexico’s 1994-1995 Debt Crisis. Journal of International Economics, 41, 309-330
Determinants of speculative bubbles - how do they occur and how could they be prevented? A discussion for the example of bubbles on financial markets or in the housing market

Blanchard, O. J., und Watson, M. W., 1982. Bubbles, rational expectations and financial markets. NBER Working Paper No. 945

Allen, F. und Gale, D., 2000. Bubbles and Crises. Economic Journal, 110(460), 236-255
Triple debt crises: Why do banking, exchange rate crises and sovereign debt crises often occur at the same time and how can triple crises be prevented?

Reinhart, C. M. und Rogoff, K. S., 2011. From Financial Crash to Debt Crisis. American Economic Review, 101, 1676-1706

Reinhart, C. M. and Rogoff, K. S., 2009. This Time is Different – Eight Centuries of Financial Folly, Princeton University Press
Contagion effects during financial crises using the example of the European Sovereign Debt Crisis of 2010

Lane, P., 2012. The European Sovereign Debt Crisis. Journal of Economic Perspectives, 26(3), 49-68

Santis, R. A., 2012. The Euro Area Sovereign Debt Crisis – Safe Haven, Credit Rating Agencies and the Spread of the Fever from Greece, Ireland and Portugal. ECB Working Paper No. 1419

Constâncio, V., 2012. Contagion and the European Debt Crisis. In: Banque de France (Hrsg.), Public Debt, Monetary Policy and Financial Stability, Financial Stability Review No. 16

Topics regarding behavioural finance and financial market and debt crises

Professional forecasts of macroeconomic variables or of asset prices: The role of herding or beauty contests

Lamont, O. A., 2002. Macroeconomic forecasts and microeconomic forecasters. Journal of Economic Behavior & Organization, 48, 265-280

Rangvid, J.; Schmeling, M. und Schrimpf, A., 2013. What do professional forecasters‘ stock market expectations tell us about herding, information extraction and beauty contests? Journal of Empirical Finance, 20, 109-129
Volatility on financial markets - caused by rational behavior or by overconfidence?

Kahneman, D.; Slovic, P. und Tversky, A., Hrsg. 2001. Judgement under uncertainty: Heuristics and biases. Cambridge, UK: Cambridge University Press, Part VI: Overconfidence

Odean, T., 2004. Do Investors Trade Too Much?. In: Camerer, C. F.; Loewenstein, G. und Rabin, M., Hrsg. 2004. Advances in Behavioral Economics. Princeton, New Jersey: Princeton University Press., 606-632

Reinhart, C. M. und Rogoff, K.S., 2009. This Time is Different: Eight Centuries of Financial Folly. Princeton, New Jersey: Princeton University Press
The illusion of control - can it be used to explain the occurrence of speculative bubbles on financial markets?

Langer, E. J., 1975. The illusion of control. In: The Journal of Personality and Social Psychology, 32(2), 311-328

Kindleberger, C. P. und Aliber, R., 2005. Manias, Panics and Crashes – A History of Financial Crises. 5. Aufl. New Jersey: Wiley

Shiller, R. J., 2005. Irrational Exuberance. 2. Auflage. Princeton/ New Jersey: Princeton University Press
Bank runs as a phenomenon caused by herding and panics

Diamond, D. W. und Dybvig, P. H., 1983. Bank Runs, Deposit Insurance and Liquidity. Journal of Political Economy, 91(3), 401-419

Diamond, D. W., 2007. Banks and Liquidity Creation: A Simple Exposition of the Diamond-Dybvig Model. Economic Quarterly, 93(2), 189-200
The housing market boom in the U.S. 1997-2007: Speculative bubble or rational price increase?

Case, K. C. und Shiller, R. J., 2004. Is there a bubble in the housing market?. Cowles Foundation Paper 1089

Himmelberg, C.; Mayer, C. und Sinai, T., 2005. Assessing High House Prices: Bubbles, Fundamentals and Misperceptions. Journal of Economic Perceptions, 19(4), 67-92

Shiller, R. J., 2009. Unlearned Lessons from the Housing Bubble. The Economist’s Voice, July 2009
Loss aversion of financial investors: The disposition effect

Kahneman, D. und Tversky, A., 1979. Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291

Shefrin, H. und Statman, M., 1985. The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence. Journal of Finance, 40(3), 777- 790

Registrate for the topic of your bachelor thesis

Master Theses

Topics for your master thesis are not offered in advance, but have to be suggested by the students and developed in cooperation with Prof. Dr. Dräger or the employees of the institute. In general, we only support empirical master theses in the context of money and international finance.

If you want to write your master thesis at the Institute of Money and International Finance, please send a short E-Mail to Prof. Dr. Dräger, which includes your prefered starting date and topic suggestion. Alternatively, you can visit the office hour as well.