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An empirical analysis of monetary policy committees composition and its relationship with monetary policy

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  • Costa, Guilherme Spilimbergo
  • Guillen, Diogo Abry

Abstract

This paper compiles a novel and unique dataset encompassing 439 individuals who served as board members on 16 different inflation-targeting central banks’ monetary policy committees (MPCs) from 1999 to 2018. We document relevant trends over the past twenty years: (i) An increasing share of women serving on committees, albeit still a minority; (ii) an increase in the share of members with previous private sector experience and (iii) an increase in the average age and experience among members over time. Moreover, we find that: (i) A higher proportion of members with MBAs and Masters’ in economics is related to lower levels of inflation; (ii) a committee with more members with formations not in economics or law tends to be more lenient towards the monetary policy target; (iii) the average MPC age within a range of 55 and 60 years seems to be linked to less volatile inflation; and (iv) more MPC women members correlates with both lower and less volatile inflation.

Suggested Citation

  • Costa, Guilherme Spilimbergo & Guillen, Diogo Abry, 2024. "An empirical analysis of monetary policy committees composition and its relationship with monetary policy," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(4).
    • Handle: RePEc:eee:lajcba:v:5:y:2024:i:4:s2666143824000164
    DOI: 10.1016/j.latcb.2024.100134
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    More about this item

    Keywords

    Monetary policy committees; MPC; Policy-makers;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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