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Selecting Your Inflation Targeters: Background and Performance of Monetary Policy Committee Members

Author

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  • Etienne Farvaque
  • Hakim Hammadou
  • Piotr Stanek

Abstract

This paper starts by describing the composition of monetary policy committees (MPCs) in inflation-targeting and non-targeting countries. The experience of MPC members on their inflation performance is then compared, opposing inflation targeters with non-targeters. Our sample covers the major Organization for Economic Cooperation and Development countries, in the period 1999-2008. Our results first show that MPCs are different in inflation-targeting (versus non-targeting) countries. They also reveal that policy-makers’ backgrounds influence inflation, and that the influence of MPCs’ experience is much greater in inflation-targeting countries, while size effects are more important for committees that do not target inflation.
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Suggested Citation

  • Etienne Farvaque & Hakim Hammadou & Piotr Stanek, 2011. "Selecting Your Inflation Targeters: Background and Performance of Monetary Policy Committee Members," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 223-238, May.
    • Handle: RePEc:bla:germec:v:12:y:2011:i:2:p:223-238
    DOI: j.1468-0475.2010.00520.x
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