Uncertainty and the Bank of England's MPC

We investigate how recently developed measures of uncertainty affect the voting behavior of individual Bank of England Monetary Policy Committee (MPC) members. To determine the precise impact of uncertainty on individual policymakers, we estimate the standard errors of member-specific parameters in...

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Main Authors: Chappell, H.W., Greene, William, Harris, Mark, Spencer, C.
Format: Journal Article
Language:English
Published: WILEY 2021
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/86467
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author Chappell, H.W.
Greene, William
Harris, Mark
Spencer, C.
author_facet Chappell, H.W.
Greene, William
Harris, Mark
Spencer, C.
author_sort Chappell, H.W.
building Curtin Institutional Repository
collection Online Access
description We investigate how recently developed measures of uncertainty affect the voting behavior of individual Bank of England Monetary Policy Committee (MPC) members. To determine the precise impact of uncertainty on individual policymakers, we estimate the standard errors of member-specific parameters in a random parameters ordered probit framework. We find that uncertainty is typically associated with voting to ease the policy stance. The Bank of England's in-house uncertainty index plays a prominent role in driving voting behavior. Based on this measure, the MPC emerges as a diverse group of activist risk managers.
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institution Curtin University Malaysia
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language English
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spelling curtin-20.500.11937-864672021-11-26T06:44:35Z Uncertainty and the Bank of England's MPC Chappell, H.W. Greene, William Harris, Mark Spencer, C. Social Sciences Business, Finance Economics Business & Economics monetary policy random parameters uncertainty voting MONETARY-POLICY OUTSIDERS POWER We investigate how recently developed measures of uncertainty affect the voting behavior of individual Bank of England Monetary Policy Committee (MPC) members. To determine the precise impact of uncertainty on individual policymakers, we estimate the standard errors of member-specific parameters in a random parameters ordered probit framework. We find that uncertainty is typically associated with voting to ease the policy stance. The Bank of England's in-house uncertainty index plays a prominent role in driving voting behavior. Based on this measure, the MPC emerges as a diverse group of activist risk managers. 2021 Journal Article http://hdl.handle.net/20.500.11937/86467 10.1111/jmcb.12854 English WILEY restricted
spellingShingle Social Sciences
Business, Finance
Economics
Business & Economics
monetary policy
random parameters
uncertainty
voting
MONETARY-POLICY
OUTSIDERS
POWER
Chappell, H.W.
Greene, William
Harris, Mark
Spencer, C.
Uncertainty and the Bank of England's MPC
title Uncertainty and the Bank of England's MPC
title_full Uncertainty and the Bank of England's MPC
title_fullStr Uncertainty and the Bank of England's MPC
title_full_unstemmed Uncertainty and the Bank of England's MPC
title_short Uncertainty and the Bank of England's MPC
title_sort uncertainty and the bank of england's mpc
topic Social Sciences
Business, Finance
Economics
Business & Economics
monetary policy
random parameters
uncertainty
voting
MONETARY-POLICY
OUTSIDERS
POWER
url http://hdl.handle.net/20.500.11937/86467