Career concerns can lead to better FOMC voting – NBER paper
Study examines range of biases among Fed decision-makers
New research explores how policy-makers’ desire to appear competent can distort decision-making on the Federal Open Market Committee (FOMC).
The research, published this week by the US National Bureau of Economic Research (NBER), assesses FOMC members’ “career concerns” by exploiting the 1993 “transparency shock”. Until 1993, committee members thought no verbatim record of meetings was kept – however, at this point, then-chair Alan Greenspan revealed that transcripts dating back to 1976 had been
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