IMF, Report: Diverse Views in Monetary Policy

“Monetary policymaking requires complex real-time judgments. For that reason, in every advanced economy except Canada, monetary policy is delegated to a committee of experts rather than to a single decision-maker. In practice, however, decision-making has been impaired by the pitfalls of groupthink, tokenism, and marginalization of dissenting views. Indeed, central bank governance has not kept up with best practice in fostering the diversity of views by separating the roles of the board chair and chief executive officer (CEO) and by adopting procedures to ensure that every committee member has essentially the same degree of influence and accountability for its decisions.”