Monetary Policy Committees: Meetings and Outcomes

Berk, Jan Marc; Bierut, Beata K.

doi:10.1111/j.1465-7287.2009.00194.x

Cited by 6 publications

(3 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…a price stability objective). The actors of the model are expected utility-maximizing policymakers, but their skills may vary (see Berk and Bierut, 2009). …”

Section: A Model Of Decision-making With Search Costsmentioning

confidence: 99%

See 1 more Smart Citation

Monetary policy decision-making when information search is costly

Jung

Mongelli

2016

Banks and Bank Systems

View full text Add to dashboard Cite

This paper explores monetary policy decision-making within an insurance model with expected utility-maximizing policy-makers. The authors consider that policy-makers are different in terms of their backgrounds, experience and skills and they may disagree on the appropriate policy response. In a monetary policy committee, they share information and decide on interest rates by means of an agreed voting rule. The authors show that, in the presence of risk and search costs, it would be optimal for policy-makers to fully insure against the expected loss from a potential policy error. Whether a monetary policy committee sufficiently hedges against this risk will depend on several factors such as the skills of policy-makers, the distribution of members' beliefs, and the committee's (statutory) voting rule, but also on other factors not captured by the model.

show abstract

“…a price stability objective). The actors of the model are expected utility-maximizing policymakers, but their skills may vary (see Berk and Bierut, 2009). …”

Section: A Model Of Decision-making With Search Costsmentioning

confidence: 99%

“…In line with the literature, we assume that two alternative, well-defined, future states of the economy can oc-cur with some probability. Yet, policy-makers are unable to form exact probability judgements about their occurrence 5 :…”

Section: Optimal Decisions Under Knightian Uncertaintymentioning

confidence: 99%

Monetary policy decision-making when information search is costly

Jung

Mongelli

2016

Banks and Bank Systems

View full text Add to dashboard Cite

show abstract

“…In such a case, decisions may be subject to an intrinsic judgement bias in the sense that there is a difference in the accuracy of judgement between members of the hub and spokes. Berk and Bierut (2009) find, however, that by adopting appropriate agenda‐setting techniques – such as to vote on interest rate proposals at the end of the monetary policy discussions – a possible crowding out of relevant information in the monetary policy committees' discussions can be addressed.…”

Section: Monetary Policy By Committees: General Rationale and Ecbmentioning

confidence: 99%

How are the Eurosystem's Monetary Policy Decisions Prepared? A Roadmap

Jung

Mongelli

Moutot

2010

J of Common Market Studies

View full text Add to dashboard Cite

The monetary policy framework of the Eurosystem has received considerable attention in recent years: there is a well-established and rich literature on the price stability objective, as well as the two-pillar strategy of the ECB. This is less the case for the regular monetary policy preparations and the decision-making process. This article provides an insider's roadmap to the procedures to prepare monetary policy decisions by the Governing Council of the ECB. The architecture of the Eurosystem permits the processing and analysis of a vast amount of national and aggregate economic, financial and monetary data and assists the Governing Council in taking monetary policy decisions - and this each month. Our aim is to describe the role of a variety of committees and sub-committees that prepare and support the monetary policy decision-making process. A federal organization is at the heart of this process. At the top of the pyramid of information there is a two-tiered committee structure with the Executive Board taking the lead in bringing together most of the economic, financial and monetary analyses, and the Governing Council utilizing that information, for its monthly economic and monetary analyses. Copyright (c) 2010 The Author(s). Journal compilation (c) 2010 Blackwell Publishing Ltd.

show abstract