Diverse Policy Committees Can Reach Underrepresented Groups

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091621-WP-Diverse Policy Committees Can Reach Underrepresented Groups-D’Acunto Fuster and Weber


Francesco D’Acunto, Boston College
Andreas Fuster, Swiss Finance Institute
Michael Weber, University of Chicago


In a randomized control trial that varies the salience of female and minority representation on the Federal Reserve’s monetary policy committee, the FOMC, we test whether diversity affects how Fed information influences consumers’ subjective beliefs. Women and Black respondents form unemployment expectations more in line with FOMC forecasts and trust the Fed more after this intervention. Women are also more likely to acquire Fed-related information when associated with a female official. White men, who are overrepresented on the FOMC, do not react negatively. Heterogeneous taste for diversity can explain these patterns better than homophily.


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