Are Central Banks’ Research Teams Fragile Because of Groupthink in the Area of Monetary Policy? – Evidence on Inflation Targeting
Are Central Banks’ Research Teams Fragile Because of Groupthink in the Area of Monetary Policy? – Evidence on Inflation Targeting

Summary/Abstract: In the recent years, the a great vast majority of the world’s central banks haveglobally failed to realize meet their inflation targets. We attempt to answer a question ofdetermine whether such this failure resulted from insufficient inadequate organizationorganisation of economic research in those institutions. Our study shows a positive, butstatistically weak, relationship between these two issues aspects. However, the analysisfinds also finds a few several adverse irregularities in how research is organised in majorcentral banks’s. research organizations. The research of the U.S. Federal Reserve, the Bundesbank, and the Bank of England are is relatively less diversified compared tothan thatof the European Central Bank. In the cases of Poland and Italy, central bank economicdepartments are dominated by groups of researchers focused on a narrow range of topics.On the other hand, the organization organisation of research departments in France andCanada supports a greater variety of topics and independence of researchers.

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