Working paper/research report

Publication year: 2013

URL: https://hdl.handle.net/10419/93519

Title of series: MAGKS Joint discussion paper series in economics

Number in series: 2013, 54

Abstract: 

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 top- graded central banker faces a significantly more favorable output-inflation trade-off than his peers.

Harvard Citation style: Neuenkirch, M. and Tillmann, P. (2013) Superstar central bankers. (MAGKS Joint discussion paper series in economics, 2013, 54). Marburg: Philipps-University Marburg. https://hdl.handle.net/10419/93519

APA Citation style: Neuenkirch, M., & Tillmann, P. (2013). Superstar central bankers. (MAGKS Joint discussion paper series in economics, 2013, 54). Philipps-University Marburg. https://hdl.handle.net/10419/93519