The association of high perceived inflation with trust in national politics and central banks✰

Carin van der Cruijsen, Jakob de Haan and Maarten van Rooij

Journal of Banking & Finance, 2025, vol. 171, issue C

Abstract: Using a survey in the Netherlands, we find that high inflation perceptions are associated with low trust in Dutch politics and the Dutch central bank, also if we control for a broad array of potential confounding factors. The higher individuals’ perceived inflation is and the harder it is for them to make ends meet, the lower their trust in Dutch politics, the Dutch central bank, and the European Central Bank. We also find that trust in an authority is lower when it is considered responsible for bringing inflation down. Quite remarkably, most people think the government is responsible for maintaining price stability.

Keywords: Inflation perceptions; Trust; Financial stress; Central banks; National politics (search for similar items in EconPapers)
JEL-codes: D12 D83 E31 E58 (search for similar items in EconPapers)
Date: 2025
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:171:y:2025:i:c:s0378426624002826

DOI: 10.1016/j.jbankfin.2024.107368

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