Misplaced childhood: When recession children grow up as central bankers

Farvaque, Etienne; Malan, Franck; Stanek, Piotr

Type de document :

Compte-rendu et recension critique d'ouvrage

DOI :

10.1016/j.jedc.2019.05.004

Titre :

Misplaced childhood: When recession children grow up as central bankers

Auteur(s) :

Farvaque, Etienne [Auteur]

Lille économie management - UMR 9221 [LEM]
Malan, Franck [Auteur]
Stanek, Piotr [Auteur]

Titre de la revue :

Journal of Economic Dynamics and Control

Pagination :

103697

Éditeur :

Elsevier

Date de publication :

2020-01

ISSN :

0165-1889

Mot(s)-clé(s) en anglais :

Central banking
Committees
Recession aversion
Discrete choice modeling
Behavioral economics

Discipline(s) HAL :

Sciences de l'Homme et Société/Economies et finances

Résumé en anglais : [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 ...
Lire la suite >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.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :

Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

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https://doi.org/10.1016/j.jedc.2019.05.004
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https://doi.org/10.1016/j.jedc.2019.05.004
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