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Flexible Majority Rules for Central Banks.

Authors :
Gersbach, Hans
Pachl, Bernhard
Source :
Journal of Money, Credit & Banking (Wiley-Blackwell); Mar2009, Vol. 41 Issue 2/3, p507-516, 10p, 1 Chart
Publication Year :
2009

Abstract

We propose a flexible majority rule for central-bank committees where the size of the majority depends monotonically on the change in interest rate within a particular time frame. Small changes in the interest rate require a small share, while larger changes require a larger share of supporting votes. We show that flexible majority rules are superior to simple majority rules. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00222879
Volume :
41
Issue :
2/3
Database :
Complementary Index
Journal :
Journal of Money, Credit & Banking (Wiley-Blackwell)
Publication Type :
Academic Journal
Accession number :
37155811
Full Text :
https://doi.org/10.1111/j.1538-4616.2009.00218.x