The Dynamic Voting Patterns of the Bank of England's MPC
24 Pages Posted: 26 Oct 2011
Date Written: September 1, 2010
The literature on the behavior of the Bank of England’s Monetary Policy Committee (MPC) has focused on static voting patterns. We find statistical support for a dynamic pattern using a panel reaction function to analyze MPC votes over the 1997-2008 period. We find that internal and external members do not behave differently in their first year on the MPC. In their third year of tenure, internal members prefer higher policy rates, placing a higher weight on price stability and a lower weight on the output gap than external members.
Keywords: Central banking, Monetary policy committees, Bank of England, Voting
JEL Classification: D71, D72, E52, E58
Suggested Citation: Suggested Citation