Too many cooks?
Berger, Helge ;  Nitsch, Volker ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleToo many cooks?
SubtitleCommittees in monetary policy
AuthorBerger, Helge
AuthorNitsch, Volker
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages31 S.
Series ; 2008,8 : Volkswirtschaftliche Reihe
Keywordscentral bank design, monetary policy committee, central bank board, central bank council, governance, inflation
Classification (DDC)337 International economics
339 Macroeconomics and related topics
Also published in
AbstractHow many people should decide about monetary policy? In this paper, we take an empirical perspective on this issue, analyzing the relationship between the number of monetary policy decisionmakers and monetary policy outcomes. Using a new data set that characterizes Monetary Policy Committees (MPCs) in more than 30 countries from 1960 through 2000, we find a U-shaped relation between the membership size of MPCs and inflation; our results suggest that the lowest level of
inflation is reached at MPCs with about seven to ten members. Similar results are obtained for other measures, such as inflation variability and output growth. We also find that MPC size influences the success of monetary targeting regimes. In contrast, there is no evidence that either turnover rates of MPC members or the membership composition of MPCs affect economic outcomes.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Lehrstuhl für Geldtheorie und Geldpolitik
Year of publication2008
Type of documentBook
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Created at2009-08-04 : 07:30:21
Last changed2016-01-05 : 02:38:13
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000002807