Monetary Policy Decisions - Comparing Theory and 'Inside' Information from MPC Members
45 Pages Posted: 13 Nov 2013
Date Written: January 15, 2013
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: Suggested Citation