We study alternative institutional arrangements for the determination of monetary policy in a general equilibrium model with heterogeneous agents, where monetary policy has redistributive effects. Inflation is determined by a policy board using either simple-majority voting, supermajority voting, or bargaining. We compare the equilibrium inflation rates to the first-best allocation.
Aleksander Berentsen and Carlo Strub (2009). Central Bank Design with Heterogeneous Agents. European Economic Review, 53 (2), 139—152.