Federico Maria Ferrara, Donato Masciandaro, Manuela Moschella, Davide Romelli, 22 December 2021

What are central banks held accountable for by elected officials? This column employs structural topic models on a new dataset of the Monetary Dialogues between the Members of the European Parliament and the President of the ECB to reveal differences in how MEPs keep the ECB accountable for its primary objective of price stability. It also shows that unemployment is a key explanatory variable for the political voice articulated by individual MEPs in accountability settings. These findings reveal the existence of a ‘political’ Phillips curve reaction function.


CEPR Policy Research