Analysis of Monetary Policy Decision Making among Heterogeneous Monetary Policy Committee (MPC) members at the Central Bank of Nigeria

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Pages from CBN EFR Vol 52 No 3 September 2014-5 Ezema, C. C., O. J.Odonye, T. S. Shitile and O. O. Afiemo.pdf (491.12 KB)

Date

2014-09

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Research Department, Central Bank of Nigeria

Abstract

This paper provided an empirical analysis of policy-makers' voting patterns on interest rates in Nigeria. Employing a (pooled) Taylor rule and using real-time data obtained from published personal statements of monetary policy committee members at the Central Bank of Nigeria (CBN), the paper tests for preference heterogeneity among MPC members. The aggregate reaction function as well as individual reaction functions for MPC members were used to tests whether there is a difference between the voting patterns of internal members and that of external members of the committee. Our results suggest evidence of heterogeneity among MPC members and that the voting patterns of the internal members are statistically different from that of the external members.

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Keywords

Panel Data Analysis, Interest Rate Decision, Monetary Policy, Central Banking

Citation

Ezema, C. C., et al (2014). Analysis of Monetary Policy Decision Making among Heterogeneous Monetary Policy Committee (MPC) members at the Central Bank of Nigeria. Economic and Financial Review, 52(3), 71-93

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http://repo.cbn.gov.ng/jspui/handle/123456789/137

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Economic and Financial Review