Trust no more? The impact of the crisis on citizens’ trust in central banks

Sébastien Wälti
Authors registered in the RePEc Author Service: Sébastien Waelti

Journal of International Money and Finance, 2012, vol. 31, issue 3, 593-605

Abstract: Citizens’ trust in economic institutions has generally declined since the onset of the crisis. In particular, Eurobarometer surveys show that trust in the European Central Bank (ECB) has fallen significantly during the crisis. This paper studies the determinants of public trust in the ECB over the lifetime of the euro. Net trust in the ECB has decreased significantly in those countries which have experienced increasing sovereign bond yields and financial market turbulence. The finding that country-specific variables affect citizens’ trust in the ECB may seem counterintuitive. However, it is consistent with strong evidence in the political science literature showing that domestic considerations play a significant role when citizens get an opportunity to express their opinion on EU matters.

Keywords: Central bank; Trust; Crisis; Sovereign bond yields; Banking crisis (search for similar items in EconPapers)
JEL-codes: E02 E31 E58 E63 P16 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:31:y:2012:i:3:p:593-605

DOI: 10.1016/j.jimonfin.2011.11.012

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