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How Do Central Bank Governors Matter? Regulation and the Financial Sector

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  • PRACHI MISHRA
  • ARIELL RESHEF

Abstract

Do past employment characteristics of central bank governors affect financial regulation? To answer this question, we construct a new data set based on curriculum vitae of all central bank governors around the world in 1970–2011. We interpret work experiences as indicators of preferences toward deregulation. Over the average duration in office (5.6 years), a governor with financial sector experience is associated with three times more deregulation than a governor without experience in finance. Similar results hold for past experience at the IMF; in contrast, past experience at the BIS and the UN are associated with less deregulation.

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  • Prachi Mishra & Ariell Reshef, 2019. "How Do Central Bank Governors Matter? Regulation and the Financial Sector," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(2-3), pages 369-402, March.
    • Handle: RePEc:wly:jmoncb:v:51:y:2019:i:2-3:p:369-402
    DOI: 10.1111/jmcb.12578
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