FOMC membersâ€™ incentives to disagree: regional motives and background influences
Hamza Bennani (),
Etienne Farvaque () and
Piotr Stanek ()
No 221, NBP Working Papers from Narodowy Bank Polski, Economic Research Department
We study determinants of individual FOMC members disagreement with the decided policy rate. Utilizing a novel dataset of macroeconomic indicators for the Fed districts and preferences revealed by FOMC members in the transcripts, we construct individual reaction functions for each member for the period 1994-2008. Then, we explain the gap between each memberâ€™s preferred rate and the adopted policy rate by individual background characteristics. First, we find that FOMC members tend to react to regional economic conditions, in particular the unemployment rate. Second, that Professors, and individuals holding a master degree or issued from either private or public sector have a higher propensity to disagree on the dovish side during the meetings, while female members as well as governors nominated by a Democrat President tend to disagree on the hawkish side (as compared to the â€œreferenceâ€ member, who is a male, PhD holder, Regional Bank President with experience in the financial sector). Moreover, we show that, under Ben Bernanke, in a period a large economic uncertainty, the propensity to disagree increased for all types of members.
Keywords: Transcripts; FOMC; Interest Rate; Individual Taylor Rule. (search for similar items in EconPapers)
JEL-codes: E43 E58 F36 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:221
Access Statistics for this paper
More papers in NBP Working Papers from Narodowy Bank Polski, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Zbigniew Polański ().