Cultural Differences in Monetary Policy Preferences

Adriel Jost

Issue
2018-02

Pages
48

JEL classification
D01, E31, E52, E58, Z13

Keywords
Inflation preferences, Culture, Monetary policy

Year
2018

The monetary policy preferences of a population are often explained by the country’s economic history. Based on Swiss data, this paper indicates that while different language groups may share the economic history, they demonstrate distinct monetary policy preferences. This suggests that distinct monetary policy preferences among the populations of different countries may be determined by not only their economic histories but also their distinct cultural backgrounds.