Preference Heterogeneity in Monetary Policy Committees
Riboni, Alessandro; Ruge-Murcia, Francesco (2008), Preference Heterogeneity in Monetary Policy Committees, International Journal of Central Banking, 4, 1, p. 213-233
TypeArticle accepté pour publication ou publié
Journal nameInternational Journal of Central Banking
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Abstract (EN)This short paper employs individual voting records of the Monetary Policy Committee (MPC) of the Bank of England to study heterogeneity in policy preferences among committee members. The analysis is carried out using a simple generalization of the standard New Keynesian framework that allows members to differ in the weight they give to output compared with inflation stabilization and in their views regarding optimal inflation and natural output. Results indicate that, qualitatively, MPC members are fairly homogeneous in their policy preferences, but there are systematic quantitative differences in their policy reaction functions that are related to the nature of their membership and career background.
Subjects / KeywordsCommittees; reaction functions; Bank of England
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