Berk, Jan Marc; Bierut, Beata K. - de Nederlandsche Bank - 2005
This paper models monetary policy decisions as being taken by an interacting group of heterogeneous policy makers …, organized in a MPC. We show that communication between members generally improves the quality of monetary policy by increasing … otherwise. Compared with expanding the MPC, communication is a cost-e.ective way of increasing the quality of monetary policy. …