The origins of monetary policy disagreement: The role of supply and demand shocks

Detalhes bibliográficos
Autor(a) principal: Madeira, C.
Data de Publicação: 2023
Outros Autores: Madeira, J., Santos Monteiro, P.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/31279
Resumo: 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.
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spelling The origins of monetary policy disagreement: The role of supply and demand shocksFOMCCommitteesMonetary policyStructural shocksDissentWe 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.MIT Press2024-03-08T16:08:28Z2023-01-01T00:00:00Z20232024-03-08T16:08:04Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/31279eng0034-653510.1162/rest_a_01383Madeira, C.Madeira, J.Santos Monteiro, P.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-10T01:18:56Zoai:repositorio.iscte-iul.pt:10071/31279Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:14:14.803611Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The origins of monetary policy disagreement: The role of supply and demand shocks
title The origins of monetary policy disagreement: The role of supply and demand shocks
spellingShingle The origins of monetary policy disagreement: The role of supply and demand shocks
Madeira, C.
FOMC
Committees
Monetary policy
Structural shocks
Dissent
title_short The origins of monetary policy disagreement: The role of supply and demand shocks
title_full The origins of monetary policy disagreement: The role of supply and demand shocks
title_fullStr The origins of monetary policy disagreement: The role of supply and demand shocks
title_full_unstemmed The origins of monetary policy disagreement: The role of supply and demand shocks
title_sort The origins of monetary policy disagreement: The role of supply and demand shocks
author Madeira, C.
author_facet Madeira, C.
Madeira, J.
Santos Monteiro, P.
author_role author
author2 Madeira, J.
Santos Monteiro, P.
author2_role author
author
dc.contributor.author.fl_str_mv Madeira, C.
Madeira, J.
Santos Monteiro, P.
dc.subject.por.fl_str_mv FOMC
Committees
Monetary policy
Structural shocks
Dissent
topic FOMC
Committees
Monetary policy
Structural shocks
Dissent
description 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.
publishDate 2023
dc.date.none.fl_str_mv 2023-01-01T00:00:00Z
2023
2024-03-08T16:08:28Z
2024-03-08T16:08:04Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/31279
url http://hdl.handle.net/10071/31279
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0034-6535
10.1162/rest_a_01383
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv MIT Press
publisher.none.fl_str_mv MIT Press
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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