Santos Monteiro, Paulo orcid.org/0000-0002-2014-4824, Madeira, Joao and Madeira, Carlos (Accepted: 2023) The origins of monetary policy disagreement: The role of supply and demand shocks. Review of economics and statistics. ISSN 0034-6535 (In Press)
Abstract
We investigate how dissent in the FOMC is affected by structural macroeconomic shocks obtained using a medium-scale DSGE model. We find that dissent is less (more) frequent when demand (supply) shocks are the predominant source of inflation fluctuations. In addition, supply shocks are found to raise private sector forecasting uncertainty about the path of interest rates. Since supply shocks impose a trade-off between inflation and output stabilization while demand shocks do not, our findings are consistent with heterogeneous preferences over the dual mandate among FOMC members as a driver of policy disagreement.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Keywords: | FOMC,Committees,Monetary policy,Structural shocks,Dissent |
Dates: |
|
Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > Economics and Related Studies (York) |
Depositing User: | Pure (York) |
Date Deposited: | 18 Sep 2023 13:50 |
Last Modified: | 16 Oct 2024 19:27 |
Status: | In Press |
Refereed: | Yes |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:203454 |
Download
Filename: MS_27037_FOMC_Dissent.pdf
Description: MS 27037 - FOMC Dissent
Licence: CC-BY 2.5
