E-mail alert  |  Contact  
Search:       Go  
Background  |   Sponsoring institutions  |   Editorial board   |   Advisory board   |   Associate editors
Call for papers  |   Submission guidelines  |   Editorial process
Current issue  |   Past issues  |  
September 2013 issue
List of authors
 
Bénétrix, Lane
Gordy, Lütkebohmert
Verona, Martins, Drumond
Anzuini, Lombardi, Pagano
Jung
Agénor, Alper, Pereira da Silva
IJCB Home   Read the journal   Past issue
Past issues
2017
 
December
September
June
March
February
2016
 
December
September
June
March
2015
 
December
September
June
March
January
2014
 
December
September
June
March
2013
 
December
September
June
March
January
2012
 
December
September
June
March
January
2011
 
December
September
June
March
2010
 
December
September
June
March
2009
 
December
September
June
March
2008
 
December
September
June
March
2007
 
December
September
June
March
2006
 
December
September
June
March
2005
 
December
September
May

Policymakers’ Interest Rate Preferences: Recent Evidence for Three Monetary Policy Committees

by Alexander Jung
European Central Bank

Abstract

This paper estimates (pooled) Taylor-type rules based on real-time information for three monetary policy committees: the FOMC, the Bank of England’s MPC, and the Riksbank’s Executive Board. Tests for heterogeneity among committee members provide new empirical evidence on the distribution of policymakers’ interest rate preferences and their individual reaction patterns to economic shocks. For all three committees we find preference heterogeneity to be systematic over the last decade. Policymakers’ preference distributions are found to be consistent with an underlying symmetric normal distribution. Disagreements among members mainly relate to their shortrun response to shocks. Additional cluster analyses exploiting individual response parameters to shocks from the reaction functions show that the membership status (chairman, internal member, external member) explains some of the heterogeneity in members’ preferences and responses.

JEL Codes: C23, D72, D83, E58.

 
Full article (PDF, 48 pages 1346 kb)