The Enduring Popularity of the Euro Throughout the Crisis

Centre for European Policy Working Paper No. 358

17 Pages Posted: 2 Feb 2012

See all articles by Felix Roth

Felix Roth

University of Goettingen (Gottingen)

Lars Jonung

Lund University - Dept. of Economics

Felicitas Nowak-Lehmann

University of Goettingen (Gottingen) - Department of Economics

Date Written: December 15, 2011

Abstract

This paper analyses the evolution of public support for the euro from 1990 to 2011, using a popularity function approach, focusing on the most recent period of the financial and sovereign debt crisis. Exploring a huge database of close to half a million observations covering the 12 original euro area member countries, we find that the ongoing crisis has only marginally reduced citizens’ support for the euro – at least so far. This result is in stark contrast to the sharp fall in public trust in the European Central Bank. We conclude that the crisis has hardly dented popular support for the euro while the central bank supplying the single currency has lost sharply in public trust. Thus, the euro appears to have established a credibility of its own – separate from the institutional framework behind the euro.

Keywords: Euro, crisis, European Central Bank, financial, sovereign, debt, trust

Suggested Citation

Roth, Felix and Jonung, Lars and Nowak-Lehmann, Felicitas, The Enduring Popularity of the Euro Throughout the Crisis (December 15, 2011). Centre for European Policy Working Paper No. 358. Available at SSRN: https://ssrn.com/abstract=1996473 or http://dx.doi.org/10.2139/ssrn.1996473

Felix Roth (Contact Author)

University of Goettingen (Gottingen) ( email )

Wilhelmsplatz 1
Göttingen, 37073
Germany

Lars Jonung

Lund University - Dept. of Economics ( email )

Box 7080
Lund, 22007
Sweden

Felicitas Nowak-Lehmann

University of Goettingen (Gottingen) - Department of Economics ( email )

Platz der Goettinger Sieben 3
Goettingen, 37073
Germany

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