Monetary Policy by Committee : Consensus, Chairman Dominance or Simple Majority ?
Riboni, Alessandro; Ruge-Murcia, Francesco (2010), Monetary Policy by Committee : Consensus, Chairman Dominance or Simple Majority ?, The Quarterly Journal of Economics, 125, 1, p. 363-416. http://dx.doi.org/10.1162/qjec.2010.125.1.363
Type
Article accepté pour publication ou publiéDate
2010-02Nom de la revue
The Quarterly Journal of EconomicsVolume
125Numéro
1Éditeur
Oxford University Press
Pages
363-416
Identifiant publication
Métadonnées
Afficher la notice complèteRésumé (EN)
This paper studies the theoretical and empirical implications of monetary policy making by committee under four different voting protocols. The protocols are a consensus model, where a supermajority is required for a policy change; an agenda-setting model, where the chairman controls the agenda; a dictator model, where the chairman has absolute power over the committee; and a simple majority model, where policy is determined by the median member. These protocols give preeminence to different aspects of the actual decision-making process and capture the observed heterogeneity in formal procedures across central banks. The models are estimated by maximum likelihood using interest rate decisions by the committees of five central banks, namely the Bank of Canada, the Bank of England, the European Central Bank, the Swedish Riksbank, and the U.S. Federal Reserve. For all central banks, results indicate that the consensus model fits actual policy decisions better than the alternative models. This suggests that despite institutional differences, committees share unwritten rules and informal procedures that deliver observationally equivalent policy decisions.Mots-clés
Committees; voting models; status-quo bias; median voterPublications associées
Affichage des éléments liés par titre et auteur.
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Riboni, Alessandro; Ruge-Murcia, Francesco (2008-08) Article accepté pour publication ou publié
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Riboni, Alessandro; Ruge-Murcia, Francesco (2008) Article accepté pour publication ou publié
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Riboni, Alessandro; Ruge-Murcia, Francesco (2011-05) Document de travail / Working paper
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Riboni, Alessandro (2010-02) Article accepté pour publication ou publié
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Carré, Martine; Riboni, Alessandro (2012) Communication / Conférence