This paper shows the relationships between the mechanisms of decision in politics (harmony versus conflict) and the mechanisms of allocation in economics (hierarchy versus market) by means of ideal types. Under this approach one concludes that the market mechanism in economics and the conflict...

Recently a new approach to political economy has been consolidated. The political analysis of transaction costs is an attempt to solve some of the problems which arise in economic theories of public policy. This paper deals with the notions of transaction costs, institutional efficiency,...

In this paper we assess the credibility of Bank of Spain’s monetary and interest rate announcements as perceived by the agents. Firstly, we analyze the convergence between the objectives of monetary policy and the evolution of the monetary aggregate and the market interest rates. Secondly, we...