Trust me! I am a European Central Banker

Dirk Bursian and Sven Fürth

No 31, SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE

Abstract: In the aftermath of the financial crisis, the ECB has experienced an unprecedented deterioration in the level of trust. This raises the question as to what factors determine trust in central banking. We use a unique cross-country dataset which includes a rich set of socio-economic characteristics and supplement it with variables meant to reflect a country's macroeconomic condition. We find that besides individual socio-economic characteristics, macroeconomic conditions play a crucial role in the trust-building process. Our results suggest that agents are boundedly rational in the trust-building process and that current ECB market operations may even be beneficial for trust in the ECB in the long-run.

Keywords: Central Banking; European Central Bank; Financial Crisis; Fiscal Crisis; Trust (search for similar items in EconPapers)
JEL-codes: D1 E5 G21 H6 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mon and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Journal Article: Trust Me! I am a European Central Banker (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewp:31

DOI: 10.2139/ssrn.2320447

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