Monetary policy committee size and inflation volatility |
| |
Authors: | Szilard Erhart Harmen Lehment Jose L Vasquez Paz |
| |
Institution: | (1) Magyar Nemzeti Bank, Budapest, Hungary;(2) Advanced Studies in International Economic Policy Research, Kiel Institute for the World Economy, Kiel, Germany;(3) Banco Central de Reserva del Peru, Lima, Peru;; |
| |
Abstract: | Previous research on the optimal size of a monetary policy committee (MPC) focused on theoretical analyses and experimental
studies. These studies suggest that the ideal monetary policy committee may not have many more than five members. In this
paper we conduct an empirical cross-country study to explore whether there is a link between the size of an MPC and inflation
volatility. The analysis for 75 countries which have adopted MPCs provides some support for the above suggestion: countries
with less than five MPC members tend to have larger deviations from trend inflation than MPCs with five members; raising the
number of MPC members above five does not contribute to a further reduction in volatility. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|