Masciandaro, Donato, (2017), “Doves, hawks … and pigeons: Why central bankers like monetary policy inertia”, VoxEu, 2 January
The discussion of the delayed lift-off in US monetary policy is just the latest episode in a long-lasting debate over the causes of inertia in monetary policy. This column approaches the issue by assuming that psychological drivers can influence the decisions of central bankers. Loss aversion is one source of behavioural bias which can explain delays in changing the stance of monetary policy, including the fear of lift-off after a recession.
- Barwell, Richard, (2016), “No hawks, no doves, only consensus: How central banks set interest rates“, VoxEu, 19 December
- Otmar Issing, (2016), “Central Banks and the Revenge of Politics”, Project Syndicate, 1 November