Berk, Jan Marc; Bierut, Beata K. - In: European Journal of Political Economy 27 (2011) 4, pp. 791-801
We model monetary policy decisions as being taken by a group of heterogeneous policy makers, organized in a committee. Intuitively, when MPC members disclose and discuss the arguments behind their view on the interest rate, the quality of the collective decision should be higher compared to...