Download or read book Committee Decisions on Monetary Policy written by Henry W. Chappell, Jr. and published by MIT Press. This book was released on 2004-12-30 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: An examination of how the policy preferences of individual members of the Federal Open Market Committee are translated into monetary policy decisions. In many countries, monetary policy decisions are made by committees. In the United States, these decisions are made by the Federal Reserve's Federal Open Market Committee (FOMC), which consists of the seven members of the Board of Governors and the presidents of the twelve district banks. This book examines the process by which the preferences of the FOMC's individual members are translated into collective policy choices. This focus on the aggregation of individual preferences into group decisions is unique and provides an important perspective on the evolution of monetary policy choices. To study decision making by the FOMC, the authors have used both formal voting records and detailed transcripts and summaries of deliberations contained in the committee's Memoranda of Discussion and FOMC Transcripts. The latter sources have been used to construct data sets describing individual committee members' policy preferences for the 1970-1978 and 1987-1996 periods when the FOMC was chaired by Arthur Burns and Alan Greenspan, respectively. These data are used to estimate monetary policy reaction functions for individual Committee members and to explore the role of majoritarian pressures, pressures for consensus, and the power of the chairman in collective decision making. The rich anecdotal evidence found in the Memoranda of Discussion and FOMC Transcripts inspires the narrative approach taken in two chapters, on the influence of political pressure on FOMC deliberations and on the relevance of the time inconsistency problem for the rise of inflation in the 1970s.
Download or read book Committee Decisions on Monetary Policy written by and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy Committees Learning and Communication written by Anke Weber and published by International Monetary Fund. This book was released on 2010-04-01 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers optimal communication by monetary policy committees in a model of imperfect knowledge and learning. The main policy implications are that there may be costs to central bank communication if the public is perpetually learning about the committee's decision-making process and policy preferences. When committee members have heterogeneous policy preferences, welfare is greater under majority voting than under consensus decision-making. Furthermore, central bank communication under majority voting is more likely to be beneficial in this case. It is also shown that a chairman with stable policy preferences who carries significant weight in the monetary policy decision-making process is welfare enhancing.
Download or read book The Monetary Policy Committee written by Grahame Allen and published by . This book was released on 2003 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy Report Together with Additional Separate Minority and Dissenting Views written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs and published by . This book was released on 1983 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Deliberating American Monetary Policy written by Cheryl Schonhardt-Bailey and published by MIT Press. This book was released on 2013-11 with total page 537 pages. Available in PDF, EPUB and Kindle. Book excerpt: American monetary policy is formulated by the Federal Reserve and overseen by Congress. Both policy making and oversight are deliberative processes, although the effect of this deliberation has been difficult to quantify. In this book, Cheryl Schonhardt-Bailey provides a systematic examination of deliberation on monetary policy from 1976 to 2008 by the Federal Reserve's Open Market Committee (FOMC) and House and Senate banking committees. Her innovative account employs automated textual analysis software to study the verbatim transcripts of FOMC meetings and congressional hearings; these empirical data are supplemented and supported by in-depth interviews with participants in these deliberations. The automated textual analysis measures the characteristic words, phrases, and arguments of committee members; the interviews offer a way to gauge the extent to which the empirical findings accord with the participants' personal experiences --
Download or read book Elements of Optimal Monetary Policy Committee Design written by Jérôme Vandenbussche and published by International Monetary Fund. This book was released on 2006-12 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The move from individual decision making to committee decision making is widely seen as a major evolution in contemporary central banking. This paper reviews the relevant economics and social psychology literatures with a view to providing some insights into the question of optimal monetary policy committee design. While the preference aggregation literature points to the effect of committee structure on the extent of the time inconsistency problem and its associated costs, the belief aggregation literature analyzes how different committee structures affect the efficiency of information pooling, the process of social influence, and collective accuracy. In conclusion, we highlight the main tradeoffs that the analysis has brought to light and point to directions for future research.
Download or read book Minutes of the Federal Open Market Committee and Its Executive Committee written by United States. Federal Open Market Committee and published by . This book was released on 1958 with total page 1064 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy and the State of the Economy written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2007 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Committee Decision Making in Monetary Policy written by Hyungju Cha and published by . This book was released on 2015 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Reserve Act Amendments written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy and published by . This book was released on 1979 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Monetary Policy Reform Act of 1991 written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on International Finance and Monetary Policy and published by . This book was released on 1992 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Maintaining and Making Public Minutes of Federal Reserve Meetings written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy and published by . This book was released on 1977 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Zero Inflation written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy and published by . This book was released on 1990 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Zero Inflation written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy and published by . This book was released on 1990 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy Decision Making by Committees Under Risk and Uncertainty written by Alexander Jung and published by . This book was released on 2019 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary policy-makers face various types of uncertainty and these uncertainties are exacerbated during episodes of a financial crisis. Blinder (2004) suggests that monetary policy committees help to make better decisions in the presence of uncertainty. In this paper, we explore monetary policy decision-making under risk and uncertainty within an insurance model with expected utility-maximizing policy-makers. We assume 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. We derive under what condition committees are expected to take better monetary policy decisions than single policy-makers. We also 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. In practice, whether a monetary policy committee sufficiently hedges against this risk, may depend on several factors such as the skills of policy-makers, members' beliefs, and the committee's (statutory) voting rule.
Download or read book An Analysis of Central Bank Decision making written by Maria Demertzis and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The process by which central banks take decisions has evolved over the years, with a tendency towards independence and decisions taken by committees rather than individuals. Monetary policy committees can be set up formally in different ways, traditionally falling into one of two categories: individualistic or collegial. Individualistic committees reach decisions by voting and publish the votes of each of their members, while in collegial committees, decisions are typically reached collectively. The European Central Bank is an example of the latter, while the Bank of England follows an individualistic approach. Focusing on decision-making, a relevant question is whether the formal set-up in practice leads to different ways of deliberating and reaching monetary policy decisions. We look at decisions taken by the Bank of England, the Federal Reserve and the European Central Bank over more than 20 years to evaluate how different the decision-making process is in these three central banks. The results indicate that, irrespective of the committee type, their approach to consensus building when they take decisions is similar. The three central banks seem to value reaching decisions by unanimity, both on interest rates - the prime monetary policy instrument by definition - and on asset purchases. Decisions to tighten monetary policy are more often taken unanimously than decisions to ease monetary policy. When maintaining policy unchanged, decisions are usually backed by most committee members.
