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

Apel, Mikael; Claussen, Carl Andreas; Gerlach-Kristen, Petra; Lennartsdotter, Petra; Røisland, Øistein

doi:10.2139/ssrn.2353350

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

Norges Bank Working Paper 2013/03

45 Pages Posted: 13 Nov 2013

See all articles by Mikael Apel

Mikael Apel

Sveriges Riksbank - Monetary Policy Department

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: 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