This article studies 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 interest rate setting. We also observe systematic differences in interest rate rules based on the political party appointing the governor, with more inflation-averse policies under governors that are appointed by a right-wing political authority. We show the robustness of this result by using a wider dataset (including over 3000 observations from 12 countries).
- e02 - Institutions and the Macroeconomy
- e50 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
- p16 - Capitalist Systems: Political Economy
- monetary policy
- Taylor rule
- central bank governors