This dissertation comprises four chapters, each using micro-level data to empirically analyze dynamics in the financial markets. The first chapter studies the credit channel of monetary policy transmission mechanism in the euro area. The second chapter assesses redenomination risk in the euro area. The third chapter studies the role of gender and marital status on how monetary policy affects the investment decisions of households. Finally, the fourth chapter explores whether memories of traumatic stock market crashes permanently affect the investment decisions of households.
