This thesis consists of three essays which aim to evaluate the role played by monetary policy in economic outcomes. The first two essays investigate the properties of the historical conduct of monetary policy in the United Kingdom and the United States, respectively, and justify how these properties are related to economic performance. The third essay analyzes the impact of changes in the volatility of monetary policy shocks on the economy using a Dynamic Stochastic General Equilibrium (DSGE) model with financial frictions.