DP2328 | Monetary Policy Committees: Individual and Collective Reputations

Author(s)

Publication Date

17/12/1999

JEL Code(s)

Keyword(s)

Programme Area(s)

Abstract

This paper looks at how the reputation of a monetary policy-making committee is jointly determined with the reputations of its individual members. I ask whether individuals have more or less incentive to gain a reputation for being tough on inflation when they are part of a group. I examine the effect of increased transparency - in the form of publishing the votes of individual members - on individuals' incentives to appear hard nosed. I look at how other institutional features of central banks affect the policy making body's incentive to refrain from inflation.