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Does a good central banker make a difference?
The personalities of central bankers moved center stage during the recent financial crisis. Some central bankers even gained \superstar" status. In this paper, we evaluate the pivotal role of superstar central bankers by assessing the difference an outstanding governor makes to economic perf...
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| Published in: | MAGKS - Joint Discussion Paper Series in Economics (Band 54-2013) |
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| Main Authors: | , |
| Format: | Article |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | PDF Full Text |
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| Summary: | The personalities of central bankers moved center stage during the recent
financial crisis. Some central bankers even gained \superstar" status. In this
paper, we evaluate the pivotal role of superstar central bankers by assessing
the difference an outstanding governor makes to economic performance. We
employ school grades given to central bankers by the financial press. A superstar central banker is one receiving the top grade. In a probit estimation
we first relate the grades to measures of economic performance, institutional
features, and personal characteristics. We then employ a nearest neighbor
matching approach to identify the central bankers which are closest to those
receiving the top grade and compare the economic performance across both
groups. The results suggest that a superstar governor indeed matters: a topgraded central banker faces a significantly more favorable output-in
ation trade-off than his peers. This effect is driven by outstanding central bankers in emerging markets. |
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| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0216 |