The German Public and Its Trust in the ECB: The Role of Knowledge and Information Search

29 Pages Posted: 3 Feb 2014

See all articles by Bernd Hayo

Bernd Hayo

University of Marburg - School of Business & Economics

Edith Neuenkirch

University of Marburg - School of Business & Economics

Date Written: October 31, 2013

Abstract

In this paper, we analyse the effects of objective and subjective knowledge about monetary policy, as well as the information search patterns, of German citizens on trust in the ECB. We rely on a unique representative public opinion survey of German households conducted in 2011. We find that subjective and factual knowledge, as well as the desire to be informed, about the ECB foster citizens’ trust. Specific knowledge about the ECB is more influential than general monetary policy knowledge. Objective knowledge is more important than subjective knowledge. However, an increasing intensity of media usage, especially newspaper reading, has a significantly negative influence on trust. We conclude that the only viable way for the ECB to generate more trust in itself is to spread monetary policy knowledge.

Keywords: ECB, Economic knowledge, German public attitudes, Institutional trust

JEL Classification: D83, E52, E58

Suggested Citation

Hayo, Bernd and Neuenkirch, Edith, The German Public and Its Trust in the ECB: The Role of Knowledge and Information Search (October 31, 2013). Available at SSRN: https://ssrn.com/abstract=2389652 or http://dx.doi.org/10.2139/ssrn.2389652

Bernd Hayo (Contact Author)

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

Edith Neuenkirch

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany

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