Preference Heterogeneity in Monetary Policy Committees
AbstractThis short paper employs individual voting records of the Monetary Policy Committee (MPC) of the Bank of England to study heterogeneity in policy preferences among committee members. The analysis is carried out using a simple generalization of the standard New Keynesian framework that allows members to differ in the weight they give to output compared with inflation stabilization and in their views regarding optimal inflation and natural output. Results indicate that, qualitatively, MPC members are fairly homogeneous in their policy preferences, but there are systematic quantitative differences in their policy reaction functions that are related to the nature of their membership and career background.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/7717.
Date of creation: 2008
Date of revision:
Publication status: Published in International Journal of Central Banking, 2008, Vol. 4, no. 1. pp. 213-233.Length: 20 pages
Committees; reaction functions; Bank of England;
Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
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