Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207213 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7822
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper examines the role of central bank governors in monetary policy decisions taken by a committee. To carry out this analysis, we constructed a novel dataset of committee voting behaviour for six OECD countries for up to three decades. Using a range of Taylor-rule specifications, we show that a change in governor significantly affects the interest rate setting of the whole committee. We also observe systematic differences in the responsiveness to recent changes in the state of the economy based on the political party appointing the governor, with higher responsiveness under governors that are appointed by a left-wing political authority. In contrast, right wing appointed governors are more likely to consider expected economic developments in the future when deciding on the appropriate interest rate.
Subjects: 
monetary policy
Taylor rule
central bank governors
JEL: 
E00
Document Type: 
Working Paper
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