01 - The effects of Learning in Interactive Monetary Policy Committees

We develop a theoretical framework for studying the effects of interaction on the quality of decision-making by monetary policy committees. We show that interaction, is increasing one’s expertise through an exchange of views, is most likely not to result in interdependent voting behaviour. Therefore, and in contrast to earlier literature, we find that interaction is beneficial for the collective outcome. Jel Codes: E52, E58, D83, D71 Key Words: Monetary policy, interest rates, learning