New paper at European Journal of Political Economy

Forthcoming paper at EJPE, coauthored with Colin Krainin, examines the relationship between Monetary Policy Committee (MPC) design and policy communications. Using a formal model, the paper ranks shows that different committee types vary according to their level of strategic vaguness. Importantly, the model predicts that divided committees (those with oppositional members or factions) communicate more precisely than those whose members are all in agreement. Empirically the paper examines the US central bank (FOMC) under Arthur Burns' tenure and finds some evidence to support the theory. This paper is part of a special issue on Central Banking and Accountability.