Monetary Policy Decisions - Comparing Theory and 'Inside' Information from MPC Members

45 Pages Posted: 13 Nov 2013

See all articles by Mikael Apel

Mikael Apel

Sveriges Riksbank - Monetary Policy Department

Carl Andreas Claussen

Sveriges Riksbank

Petra Gerlach-Kristen

Swiss National Bank

Petra Lennartsdotter

Sveriges Riksbank - Monetary Policy

Øistein Røisland

Norges Bank - Department of Economics

Date Written: January 15, 2013

Abstract

How do monetary policy committee (MPC) members form their views about the appropriate interest rate? To what extent do they change their minds during the deliberations in the interest rate meeting? How important is the Chairman? The theoretical literature makes assumptions about these issues. We have asked actual MPC members in Sweden and Norway. This paper reports the results from this unique survey and discusses how well existing theories on monetary policy by committee capture the reality.

Keywords: Monetary Policy Committee, Sveriges Riksbank, Norges Bank, Decision Making, Questionnaire Study

JEL Classification: D71, E52, E58

Suggested Citation

Apel, Mikael and Claussen, Carl Andreas and Gerlach-Kristen, Petra and Lennartsdotter, Petra and Røisland, Øistein, Monetary Policy Decisions - Comparing Theory and 'Inside' Information from MPC Members (January 15, 2013). Norges Bank Working Paper 2013/03, Available at SSRN: https://ssrn.com/abstract=2353350 or http://dx.doi.org/10.2139/ssrn.2353350

Mikael Apel

Sveriges Riksbank - Monetary Policy Department ( email )

S-103 37 Stockholm
Sweden

Carl Andreas Claussen

Sveriges Riksbank ( email )

Brunkebergstorg 11
SE-103 37 Stockholm
Sweden

Petra Gerlach-Kristen

Swiss National Bank ( email )

Borsenstrasse 15
CH-8022 Zurich
Switzerland

Petra Lennartsdotter

Sveriges Riksbank - Monetary Policy ( email )

SE-103 37 Stockholm
Sweden

Øistein Røisland (Contact Author)

Norges Bank - Department of Economics ( email )

P.O. Box 1179
Oslo, N-0107
Norway
+47 22 31 67 39 (Phone)
+47 22 31 60 50 (Fax)

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