The Financial Crisis and Citizen Trust in the European Central Bank

CEPS Working Document No. 334

15 Pages Posted: 29 Jul 2010

See all articles by Daniel Gros

Daniel Gros

Centre for European Policy Studies, Brussels; CESifo (Center for Economic Studies and Ifo Institute)

Felix Roth

University of Goettingen (Gottingen)

Date Written: July 26, 2010

Abstract

Trust in the European Central Bank, as measured by the standard Eurobarometer (and other) surveys has fallen to an unprecedented low – especially in the larger euro area countries. The authors find that up to the start of the financial crisis in 2008, trust in the ECB was little affected by business cycle variables such as growth and inflation. This changed radically with the recession, with trust in the ECB being correlated quite closely with growth. However, even the recovery of growth in 2009 was not sufficient to restore trust in the ECB to previous levels. This would imply that European citizens seem to have placed a heavy share of the blame on the European Central Bank for the real economic downturn caused by the financial crisis.

Keywords: European Central Bank, ECB, Eurobarometer, Euro, Euro Area Countries, Financial Crisis, Growth, Inflation

Suggested Citation

Gros, Daniel and Roth, Felix, The Financial Crisis and Citizen Trust in the European Central Bank (July 26, 2010). CEPS Working Document No. 334. Available at SSRN: https://ssrn.com/abstract=1650091

Daniel Gros (Contact Author)

Centre for European Policy Studies, Brussels ( email )

1 Place du Congres
B-1000 Brussels, 1000
Belgium

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Felix Roth

University of Goettingen (Gottingen) ( email )

Wilhelmsplatz 1
Göttingen, 37073
Germany

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