Gender and Monetary Policymaking: Trends and Drivers

38 Pages Posted: 31 Oct 2015 Last revised: 6 Feb 2017

See all articles by Donato Masciandaro

Donato Masciandaro

Bocconi University - Department of Economics

Paola Profeta

Bocconi University - Department of Policy Analysis and Public Management; CESifo (Center for Economic Studies and Ifo Institute)

Davide Romelli

Trinity College (Dublin) - Department of Economics

Date Written: January 2016

Abstract

This paper analyses the gender representation in monetary policy committees, offering three contributions. We propose the first index to evaluate the gender representation in monetary policymaking – i.e. the GMP Index – for a sample of 112 countries as of 2015. Second, we investigate the drivers of gender diversity in monetary policy committees. Our results show that, besides legal (Common Law), religious (Orthodox), historical (French colony) and socio-economic (female labour force) drivers, the gender representation is more likely to be relevant in countries characterized by a well-defined central bank governance, i.e. more independent central banks and less involved in supervision. Finally, we test whether gender diversity in central bank boards affects the conduct of monetary policy and hence macroeconomic outcomes. We find that gender diversity is inversely associated with inflation rates and money growth. The presence of women in central bank boards seems to be associated with a more hawkish approach to monetary policy making.

Keywords: Inflation, Monetary Policy, Central Banks and their Policies, Gender Economics

JEL Classification: E31, E52, E58, J16

Suggested Citation

Masciandaro, Donato and Profeta, Paola and Romelli, Davide, Gender and Monetary Policymaking: Trends and Drivers (January 2016). BAFFI CAREFIN Centre Research Paper No. 2015-12. Available at SSRN: https://ssrn.com/abstract=2683917 or http://dx.doi.org/10.2139/ssrn.2683917

Donato Masciandaro (Contact Author)

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Paola Profeta

Bocconi University - Department of Policy Analysis and Public Management ( email )

Via Roentgen 1
Milan, 20136
Italy

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Davide Romelli

Trinity College (Dublin) - Department of Economics ( email )

Arts Building
Room 3014
Dublin
Ireland

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