The Policy Choices and Reaction Functions of Bank of England MPC Members

C-Tier
Journal: Southern Economic Journal
Year: 2009
Volume: 76
Issue: 2
Pages: 482-499

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The results of an econometric exercise are presented, showing that Monetary Policy Committee (MPC) members appointed from outside the ranks of Bank of England staff (outsiders) react differently to forecasts of inflation and output than those appointed from within the Bank (insiders). All results are reinforced by the well‐established findings that, compared with outsiders, insiders choose higher interest rates, are more likely to vote as a bloc, and feature on the winning side of policy decisions more frequently. On the basis of these results, it is argued that the current MPC framework is biased toward the policy choices of insiders.

Technical Details

RePEc Handle
repec:wly:soecon:v:76:y:2009:i:2:p:482-499
Journal Field
General
Author Count
2
Added to Database
2026-01-25