Monetary Policy Committees and DeGrootian Consensus

Christopher Spencer

Economics Bulletin, 2014, vol. 34, issue 2, 1291-1302

Abstract: Reaching a decision on the policy interest-rate often requires members of a monetary policy committee (MPC) to form a consensus. To model this phenomenon, a formal deliberation mechanism that captures how committee members achieve consensus à la Morris DeGroot (1974) is employed. Numerical simulations demonstrate how DeGroot's framework informs how so-called autocratically collegial, genuinely collegial, and individualistic MPCs (Blinder, 2007) reach agreement.

Keywords: Monetary policy committees; consensus formation; deliberation (search for similar items in EconPapers)
JEL-codes: D7 E5 (search for similar items in EconPapers)
Date: 2014-06-20
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