Discussion paper

DP2328 Monetary Policy Committees: Individual and Collective Reputations

This paper looks at how the reputation of a monetary policy-making committee is jointly determined with the reputations of its individual members. I ask whether individuals have more or less incentive to gain a reputation for being tough on inflation when they are part of a group. I examine the effect of increased transparency - in the form of publishing the votes of individual members - on individuals' incentives to appear hard nosed. I look at how other institutional features of central banks affect the policy making body's incentive to refrain from inflation.


Sibert, A (1999), ‘DP2328 Monetary Policy Committees: Individual and Collective Reputations‘, CEPR Discussion Paper No. 2328. CEPR Press, Paris & London. https://cepr.org/publications/dp2328