Arbeitspapier

Monetary policy committees in action: Is there room for improvement?

More than 80 central banks use a committee to take monetary policy decisions. The composition of the committee and the structure of the meeting can affect the quality of the decision making. In this paper we review economic, experimental, sociological and psychological studies to identify criteria for the optimal institutional setting of a monetary committee. These include the optimal size of the committee, measures to encourage independent thinking, a relatively informal structure of the meeting, and abilities to identify and evaluate individual members' performances. Using these criteria, we evaluate the composition and operation of monetary policy committees in various central banks. Our findings indicate that e.g. the monetary policy committee of the Bank of England follows committee best-practice, while the committee structure of other major central banks could be improved.

Language
Englisch

Bibliographic citation
Series: Bank of Canada Working Paper ; No. 2007-6

Classification
Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Analysis of Collective Decision-Making: General
Central Banks and Their Policies
Subject
Central bank research
Monetary policy framework
Zentralbank
Vorstand
Entscheidung
Geldpolitik

Event
Geistige Schöpfung
(who)
Maier, Philipp
Event
Veröffentlichung
(who)
Bank of Canada
(where)
Ottawa
(when)
2007

DOI
doi:10.34989/swp-2007-6
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Maier, Philipp
  • Bank of Canada

Time of origin

  • 2007

Other Objects (12)