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Dissent in Monetary Policy Decisions

Author

Listed:
  • RIBONI, Alessandro
  • RUGE-MURCIA, Francisco J.
Abstract
Voting records indicate that dissents in monetary policy committees are frequent and predictability regressions show that they help forecast future policy decisions. In order to study whether the latter relation is causal, we construct a model of committee decision making and dissent where members' decisions are not a function of past dissents. The model is estimated using voting data from the Bank of England and the Riksbank. Stochastic simulations show that the decision-making frictions in our model help account for the predictive power of current dissents. The e ect of institutional characteristics and structural parameters on dissent rates is examined using simulations as well.

Suggested Citation

  • RIBONI, Alessandro & RUGE-MURCIA, Francisco J., 2011. "Dissent in Monetary Policy Decisions," Cahiers de recherche 06-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:06-2011
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    References listed on IDEAS

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    More about this item

    Keywords

    Committees; voting models; supermajority; political economy of central banking;
    All these keywords.

    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

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