Misplaced childhood: When recession children ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
Misplaced childhood: When recession children grow up as central bankers
Author(s) :
Farvaque, Etienne [Auteur]
Lille économie management - UMR 9221 [LEM]
Malan, Franck [Auteur]
Stanek, Piotr [Auteur]

Lille économie management - UMR 9221 [LEM]
Malan, Franck [Auteur]
Stanek, Piotr [Auteur]
Journal title :
Journal of Economic Dynamics and Control
Pages :
103697
Publisher :
Elsevier
Publication date :
2020-01
ISSN :
0165-1889
English keyword(s) :
Central banking
Committees
Recession aversion
Discrete choice modeling
Behavioral economics
Committees
Recession aversion
Discrete choice modeling
Behavioral economics
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
We examine how much an early – i.e., childhood – experience of recession influences the behavior of central bankers. We develop a model of decision making by a committee whose leader and members exhibit recession aversion ...
Show more >We examine how much an early – i.e., childhood – experience of recession influences the behavior of central bankers. We develop a model of decision making by a committee whose leader and members exhibit recession aversion due to their personal experience. The model reveals that recession aversion could lead to a reluctance of the policymaker to increase policy rates. In a panel multinomial logit model for nine major central banks analyzed over the period 1999–2015, we find that growing-up in a recession influences monetary policy-making. Central bankers’ early personal experiences of recessions shape their policy reactions, increasing the willingness to cut policy rates, with policy-relevant magnitudes. The results are robust to alternative behavioral hypotheses, accounting for a number of control variables or sample variation.Show less >
Show more >We examine how much an early – i.e., childhood – experience of recession influences the behavior of central bankers. We develop a model of decision making by a committee whose leader and members exhibit recession aversion due to their personal experience. The model reveals that recession aversion could lead to a reluctance of the policymaker to increase policy rates. In a panel multinomial logit model for nine major central banks analyzed over the period 1999–2015, we find that growing-up in a recession influences monetary policy-making. Central bankers’ early personal experiences of recessions shape their policy reactions, increasing the willingness to cut policy rates, with policy-relevant magnitudes. The results are robust to alternative behavioral hypotheses, accounting for a number of control variables or sample variation.Show less >
Language :
Anglais
Popular science :
Non
Collections :
Source :
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- https://doi.org/10.1016/j.jedc.2019.05.004
- Open access
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- https://doi.org/10.1016/j.jedc.2019.05.004
- Open access
- Access the document